NYA FOUNDER SPOTLIGHT ‒ RON KERBS, KIDAS FOUNDER & CEO
Kidas Founder and CEO Ron Kerbs started the company five years ago as an MBA student at The Wharton School. Ron spent most of his career in national defense, including being a captain in Israel Intelligence working on machine learning and AI projects. This experience led him to building Kidas, an AI-powered gaming and online scam protection platform. Ron shares how fundraising with New York Angels is “smart money”, the extensive support of the NYA network, and why he doesn’t believe in the 9-9-6 entrepreneurial work culture.
How did you first meet New York Angels?
I met New York Angels through one of my first investors, Brian Cohen, and his son, Trace Cohen. We met them through the mentors/investors meeting, and after they decided to invest, they introduced us to their network including New York Angels. Cindy Cook, the Chair of New York Angels, is a Board Observer, and we have quite a few members who invested.
Why did you choose to work with New York Angels?
Back when New York Angels first invested, we had launched a gaming safety solution that monitored voice and text on platforms like Minecraft, Fortnite, Roblox, Call of Duty, and others. NYA had a lot of experience in gaming. Cindy Cook was the CMO for Vivendi Games. Bruce Hack was the CEO of a company and later became the vice chairman of Activision, one of the biggest gaming companies in the world. NYA is “smart money” because they not only invest, but they help with connections and strategy.
What was the fundraising process like for Kidas?
We reached out to funds typically via warm intros from investors or people connected to the company. I had just graduated from business school, so I asked other founders in my class and professors to introduce me. We found our lead investor and once terms were set, we reached out to angel groups who wanted to participate once we had a lead.
With NYA specifically, we filled out the Gust application and presented via Zoom, as this was right after COVID. Then we had a full, two-hour due-diligence meeting led by Cindy and Bruce. After a few more discussions, they decided to invest and connected us to individuals who were interested.
What have you enjoyed most about working with New York Angels?
The support of the network. Quite a few investors were very involved and helped with connections. Brian and Trace Cohen brought us to the NYA and helped a lot with messaging with their previous PR expertise. Cindy is a Board Observer and helped us with connections and strategic guidance. Drew Hershkowitz also helped with connections, as did Bruce. Every month I send an investor update and will include asks for connections or help with certain topics, and typically someone from NYA reaches out and help
What advice would you give other founders who are fundraising?
One of the best ways to meet investors is via warm intros. A lot of founders send unsolicited emails and get ghosted. Do your homework: 1) understand which funds or angel groups are relevant to your business, and 2) understand their typical check size, so if you’re raising $2 million, don’t reach out to a fund with a $3-5 million minimum. Know the type of investor, founders and rounds they invest in, the industry, and whether they’re actually active. Build your list, line up warm intros, and time a blitz of calls in a short period (3-4 weeks) so you can move quickly. The goal is to find and secure the lead as fast as possible.
What advice would you give other early-stage investors?
Be really clear about your expectations. Do not say you invest before revenue if you will actually tell founders to come back with more revenue. Be realistic about your criteria. Some investors are okay with just slides and the team, while others want more traction or a product. Clarity saves everyone time.
What has driven Kidas’s success?
1) The team: We have known each other for 15 years and worked almost a decade together in the Israeli military. We know each other and have the relevant expertise, which helps us move fast.
2) The data moat: We have accumulated data highly relevant to what we do, which makes it hard to copy our solution. We have more than 100 million gaming and voice conversations that help train our scam-detection solution. We have created a significant moat against competitors.
What’s something interesting about you that you’d like to share with founders or investors?
I believe you need to be well-rounded, and you cannot be just a founder. I do not believe in the 9-9-6 entrepreneurial work culture. Make sure you sleep enough, eat well, work out, and take care of your family. I work out every day by starting my day at the gym or on a run, which resets my mindset so I am more effective and productive.
What motivates you as a founder?
Real progress and real success stories. At Kidas, we protect almost 1 million users. We have real stories of kids saved from scams and predators. Seeing real progress, success, and milestones is what motivates me every day.
Anything else you’d like to share with NYA’s ecosystem?
For NYA Members: Thank you for the network and what you have done for us.
For founders: Use your network after angels invest. Do not stop. Keep sending updates and requests for help. Investors are committed and can help with a lot of other things other than money. Leverage that to advance.
