Leading Microcap Board Members: Matt Hayden of MDB Capital Holdings (Nasdaq: MDBH)

What is your current occupation, background, and education?

I manage my first generation family office, named Sea Purity. I also serve as part of the GP Team for Surfworks, which is building the first large scale wave park project in the United States. I sit on the board of MDB Capital and am also an investor in the company, which is building out a public venture community. I am also very actively involved in a non-profit named Ambassadors of Compassion, which helps create emotionally resilient youth across the country. Previously, I founded and managed two investor relation firms, Hayden IR and MZ Group, and I graduated from University of South Carolina, Coastal Carolina.

How did you wind up serving on the board, and what drew you to the opportunity?

Chris Marlett, Anthony DiGiandomenico, and George Brandon, the key C-level of MDB Capital, came up with the idea to create MDB into a holding company and take it public, while launching Public Ventures and PatentVest to the general community. As such, they needed to build out an independent board that could add value to the growth strategy. I have been an investor in MDB transactions for going on 15 years. I also represented a handful of MDB IPOs when I ran the IR firm. Thus, I understood how their process worked, their ability to underwrite great platform technologies and help those companies in their evolution to become commercially successful. Also, from a self-serving perspective, I plan to consider all MDB Public Venture opportunities for my family portfolio. Thus, it’s an excellent use of time and energy.

What unique skills or experiences do you bring to the microcap boardroom?

Having been an investor and industry professional, I understand the recipe for successful companies, how to leverage other intelligent investors to triangulate diligence and how to build a community of like-minded investors to effectuate positive outcomes. We want to finance great companies that make a positive difference in the world. My experience has covered myriad industries and sector verticals. Being a problem solver has always been a strong skillset. I also built a large base of relationships across C-level, funds, family offices and accredited investors. I believe this network is one of the key assets. Chris Marlett said one of the key reasons he asked me to the board was "because I can always trust Matt will do the right thing." I want to always honor that statement.

What is one of the most common challenges that microcap boards face?

Commitment and value-add. I believe a lot of people have good intentions, but, unfortunately, you don't rise to the level of your aspirations - you fall to the level of your systems and commitment.

Have you served on other microcap boards, and if so, what did you learn from the experience(s)?

No but I have worked with and dealt with board members from over 300 public and private companies during the past 25 years. There is a reason why so many small companies don't make it and a portion of all successes or failures can be related to board involvement and value contribution. Many are dysfunctional with only a few people engaged, and, therefore, you don't get good outcomes.

Based on your experience, what attributes does a great microcap CEO possess?

Very tough to find, it’s the need to be truly a great leader, the ability to motivate and integrate, and also both macro and micro manage (when needed). They have to understand the customer and their product/service intimately with an eye to constant innovation to stay ahead of competition. They have to prioritize well, be great capital allocators and possess an unwavering commitment to success, while surrounding themselves with people who have subject-matter expertise in each facet of the business.

For people interested in serving on a microcap board, what advice would you share with them?

First, be an investor. If you don't write a check into the company, don't take a board seat. You don't have enough alignment. Second, make sure you can add real value. You must understand the business, the market or have some specialized expertise which will help the company thrive. If you don't believe the board functions properly with a process to create great outcomes, don't stay there.

What is the best microcap company you've ever encountered?

That is a great question. Cam Commerce Solutions was a great example. Acorns also did a great job executing.

Who is the best microcap board member you've ever encountered?

I will have to dig back through my notes. I have met many wonderful people along the journey who have bred success and taught me important lessons. I don't want to pull a name out of the air, so I will get back to you on this.

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