KIT MCQUISTON ‒ NYA MEMBER SPOTLIGHT
Kit McQuiston joined New York Angels through a shared investment in the digital comics platform ComiXology, which later exited to Amazon. Kit has been an active New York Angels member and deal lead for the past nine years, and today serves as a Fund Administrator on the NYA Fund 2024. In this interview, he shares how he is constantly learning from fellow NYA members, the importance of investing in founders you genuinely connect with, and why having a strong lead investor can make all the difference for an early-stage company.
How did you meet New York Angels, and why did you decide to join?
I met New York Angels through a common investment a long time ago. It was a digital comics platform called Comixology. I was on the board of the company for a number of years and met Brian Cohen and David S. Rose, who were also board members and advisors to the company.
After spending a few years interacting with them, I realized early-stage venture investing is not something you tackle by yourself. It also became very obvious that I should join New York Angels. That was my introduction to New York Angels, and I am glad it happened. I was lucky.
What has been your most memorable experience as a New York Angel?
It has been a collection of enjoyable memories, not just one. My favorite experiences are talking with founders about how they are solving big problems, while collaborating with other NYA members who bring their intelligence, experience, and subject matter expertise that broadens your own perspective. I learn something new at every meeting.
What do you look for when you’re investing in a company?
I look for all the usual things. What problem are they solving? What is the potential impact of that solution? Is the solution unique? Can they protect it in some way?
Most importantly, I look at the founders and their ability to successfully bring that solution to market. Are they the best people to do it? Do they have the ability to pivot? Are they agile? Pretty much every company you see faces change. The world changes and brings change to your doorstep. As an early-stage company, you need to be able to adjust.
What other qualities are important to you when evaluating a founder?
Founders cannot just be somebody who is a subject matter expert, they have to be somebody who can bring the idea or solution to market and can express their compelling “aha” moment. I am looking for someone that I can connect with, that has the energy to overcome adversity because it is a tough path. Evaluating a founder includes both technical and soft skills and may be one of those things where you know it when you see it.
What do founders like most about working with you?
I like to think of myself as a collaborative problem solver. I love solving problems, and I am sort of addicted to it. I go beyond merely suggesting solutions. I like to work with founders to come up with options together.
What is the biggest difference between companies you see at screening and those that make it through to due diligence?
When companies first appear at screening, they are presenting their most controlled front view, and you would expect it to look perfect, but it’s only the start. During due diligence, our job as investors is to challenge some of those statements and assumptions. Good founders already have thought through the tough questions and are not surprised by them. The best founders go even deeper and challenge their own assumptions and comeback with better answers.
What advice would you give founders who are starting to fundraise?
I think it is important for founders to find a good lead investor. Once that happens, it sets the tone for the financing and makes everything easier.
It is not just about finding a lead investor who can provide the quantity of money. You want an investor that can also provide the quality, the connections, the thought process, and the industry expertise. These will help with all the subsequent dollars raised in that round.
What advice would you give angel investors who are interested in joining New York Angels?
I would advise them to come to a Screening meeting and experience not just the pitches, but the quality of the interaction between the founders and New York Angels members. Sometimes you learn as much from the questions being asked as the answers from the founders. You can really get a sense of what New York Angels is all about during that exchange. It is a unique energy.
When you look at your past investments, what is most critical for founders to deliver a successful exit?
One thing I would recommend is that founders add one more hat to all the hats they are already wearing. As they build their company, they should start identifying strategic investors or potential acquirers early. As they move through the industry, they should work to appear on the radar of those potential acquirers so those companies can keep an eye on them as they grow. When the time is right, hopefully an acquirer will come. The outcome is usually better when a company is bought rather than when it is sold.
What is something about you that has been helpful in your career?
I started my career in private banking, and I learned there are many ways to make a living and build resources. I was particularly attracted to individuals who had started and grown their own business. That opened my eyes to the idea that you could really work for yourself. I eventually started my own business, and from there, I developed a strong appreciation for entrepreneurs and the kind of energy they bring. New York Angels was a logical home for me.
What motivates you?
The founders motivate me. When you interact with people who are building for the future and that really know their industry, you learn a lot from them while contributing where you can. What makes it even more motivating is when founders are working on solutions that could have a meaningful positive impact on the world. There’s something especially fulfilling about being able to do well while also doing good.
