NYA FOUNDER SPOTLIGHT ‒ PATRICK RACINE, CHILLSKYN CEO
After decades of working in corporate and private equity, Patrick Racine co-founded ChillSkyn to provide sustainable cooling technologies that block solar radiation from converting into heat. As climate change continues to increase, ChillSkyn offers as an eco-friendly solution that reduces energy expenses and provides electricity-free cooling for trucking, warehouses, shelters and other applications. Patrick shares ChillSkyn's experience with TandemLaunch, the company's unique appeal to angel investors, and their race to be first in market.
How did you first connect with New York Angels?
ChillSkyn was originally incubated at TandemLaunch, which is a venture studio based in Montreal. TandemLaunch has a longstanding relationship with New York Angels, and so we were introduced to Ed Levine and NYA. It quickly became clear that NYA was a good fit for us.
Our business thesis doesn’t always align with the classic VC model as we’re not trying to become a unicorn. We are more likely to have an early, favorable exit and we will not need a Series B, C, D, and E. VCs generally do not love hearing that. I think the angel model fits us well with a shorter time horizon, slightly lower risk profile, and still the potential for attractive returns. That’s something Ed and the early angels I spoke with really understood.
Why did you choose to work with New York Angels?
Because of our unique technology, we were able to fundraise fairly quickly and even became oversubscribed. Unlike other ventures in the last 18 months, we had good traction and thus had the luxury of choosing who we wanted on our cap table.
NYA provides a good balance of wanting to help but also not trying to control the boardroom. One of the things that appealed to us about New York Angels was their degree of independence. They’re not looking to be overly active investors that are constantly checking in.
The value that NYA brings is an extensive network, which is incredibly important when you’re seeking commercial traction. A good network of people who are willing to help you with warm intros are essential. The roster of NYA Members offered a greater opportunity than one or two potentially larger-check angels with more limited networks. With 70-80 total investors, 14 of whom are at our cap table, we have a decent-sized community who understand the product, believe in the opportunity, and have deep business networks.
What have you enjoyed most about working with New York Angels?
Our relationship is still somewhat early, but Ed serves as an observer on our board, and he’s played a important role so far for ChillSkyn. Ed challenges us constructively in the right ways and offers interesting points to help us grow.
ChillSkyn did not want investors who are overly involved, but we do want to be constantly challenged. We are the first to admit that we don’t have all the answers. Ed and NYA have shown a solid understanding of our business thesis and have offered insight into how we can accelerate growth. One thing that really stood out was when I asked for a warm intro last week, and within just a few days, I was able to get a message out to the entire group. That responsiveness is amazing.
What advice would you give to other founders who are fundraising?
Pick your investors wisely. Don’t just take checks. Make sure you’re partnering with people who believe in what you’re doing, understand what you’re trying to build, and bring value to your business.
Our cap table is a blend. From NYA, we have access to their broad network. From other investors, we gain specific industry expertise. We also have some institutional money that brings experience navigating VC cycles. As you create your cap table, understanding how each piece fits together is critical to help build the business.
Also, fundraising always takes longer than you think. Prepare early. Have conversations with your team about the kinds of diligence you’ll go through, and make sure you're far enough along in commercial traction or at least have a strong understanding of product-market fit. Until you have confirmed that customers want to buy what you’re offering, it’s hard to convince external investors to bet on you. If you don’t have some traction, you should likely focus more on friends and family.
What advice would you give other early-stage investors?
Be open to companies that aren’t based on becoming a unicorn. There are plenty of great businesses out there that will generate earlier traction and profitable growth. These companies might not fit the standard VC model, but they add great value to an angel portfolio. Take the time to have a conversation with the management team because you might discover something you would have otherwise missed. Funny enough, post-funding, when you’re starting to gain more traction, several investors who had passed on the opportunity say they wished they would have been part of the deal. They were invited, but they just chose not to.
What has driven ChillSkyn’s success so far?
The team that we built. We knew the technology would work, but we had to put the right people in the room to execute and execute with speed.
We’re building a high-trust, high-speed culture. To win in this space, we need to be first to market and succeed early. That means moving quickly, taking calculated risks when the product is almost ready. Time is the biggest enemy of a startup.
Half of our core team has prior experience in other businesses, so they understand that even large companies do not have all the solutions, their products aren’t perfect, and there are ongoing issues. Even Microsoft still gives you the blue screen of death!
I have met a lot of founders who believe everything needs to be perfect before going to market, but I do not think there is such a thing as a perfect product. Focus on solving real problems, and go out there with a solution that is going to help people, even if it isn’t perfect yet.
What’s something interesting about you that founders or investors should know?
I don’t fit the stereotype of a serial entrepreneur. I came to startups later in life after working in corporate and private equity.
My background comes with both pros and cons, but I think it adds a lot of value to the business and to the more junior team members. I walked away from a clear, easier path to success to take a gamble on something I believe in with ChillSkyn, and I am having the most fun I have ever had in my career. I love mentoring and supporting a team of super smart and driven people who are eager to learn about our business. That is a part of the secret to our success.
What motivates you?
My “why” is to create an environment where collaboration leads to success-filled journeys. I use the term “success-filled” instead of “successful,” because I think of it as a process. It is a journey. I want people to feel that we're having success every day here.
Part of the journey is actually creating success for all of our stakeholders: our team, our customers, our investors, and even our vendors. If we can create an environment where all of these stakeholders are finding success because of what we’re doing, then I have achieved what I wanted to achieve.
How can investors and others help in your journey?
ChillSkyn has a product that is market-ready. We have some great case studies and early traction. The biggest difference you can make is through warm introductions to companies that could benefit from heat mitigation, particularly in transportation. We are being disciplined about focusing on our beachhead, but the truth is, our solution has value for any sun exposed surface that is negatively impacted by heat.
If someone has a brilliant idea for where else our technology could help, whether it is for economic or comfort reasons, we are all ears. If the NYA network can help with that, it will make a huge difference for us and for all the investors along the way.
