Welcome to the September Newsletter. While August provided a break for formal NYA meetings, as you can see from this edition, our members have been hard at work. This month, as well as sharing updates from our portfolio companies, we are happy to announce our most recent exit. We also sat down with the Founder & CEO of Fuego Dance, Kevin Weschler. We reflect on our fireside chat with Alan Patricof and publish advice from NYA members on what, in their opinion, makes a great founder.
TOTAL INVESTMENTS YTD
New York Angels members invested $3.66M YTD.
JULY & AUGUST INVESTMENT HIGHLIGHTS
GOLDILOCK
Goldilock is the first U.K. company presenting to NYA that received investment. Goldilock keeps data completely isolated from the internet, invisible and un-findable to hackers. Goldilock can ensure your data backups are clean and isolated in case of ransomware or other cyber intrusions. Goldilock's Drawbridge product allows network administrators to isolate devices and network architecture, in seconds, to mitigate attacks, zero-day incidents and other cyber threats. Tom Hirschfeld and Alex Goldberg led NYA members through their first investment in Goldilock.
ORA GRAPHENE
Ora Graphene's rapid growth has attracted its third investment from New York Angels members. Ora Graphene is advancing the commercialization of Graphene-based nano-materials for high performance loudspeakers and headphones used in everything from cell phones to rock concerts. Graphene speaker membranes allow for smaller, louder, more efficient drivers that produce audiophile sound quality at an affordable price. Bill Pertusi and Ed Levine led the deal.
COMPANY EXIT
PICKUP NOW
New York Angels members first invested in PICKUP Now in 2021 and then again in its 2023 Series B Extension. In August, PICKUP Now joined OneRail to offer nationwide delivery services for big and bulky goods. Working together, both companies can enhance their fulfillment capabilities for shared customers like Lowe’s, PepsiCo and the Army & Air Force Exchange Service (AAFES). Read Announcement
FOUNDER SPOTLIGHT
In 2018, Kevin Weschler, Founder and CEO of Fuego, noticed a void in the dance shoe market when he saw a need for a lightweight, fashionable dance shoe that would transition from the dancefloor to streetwear. Prior to Fuego, Kevin founded 2 College Brothers Moving and Storage, which was acquired after two years. As a management consultant at Deloitte, Kevin focused on assisting private equity and Fortune 500 companies in acquiring and merging businesses. Kevin discusses how he bootstrapped his company, challenges in fundraising and how investors should think outside the box.
COMPANY NEWS
BOTFACTORY
BotFactory has signed an 18 month Phase II Grant contract with the Air Force to further develop its Additive Manufacturing of Electronics (AME) capabilities. This is a major milestone for BotFactory, and it reflects the Air Force's confidence in the company's technology. AME is a rapidly growing field with the potential to revolutionize the way electronics are manufactured. BotFactory's technology is at the forefront of this field. Read About the Evolution of the Electronics Industry
COMPANY NEWS
CUSTOMERS.AI
Inc. Magazine ranked Customers.ai as one of the fastest-growing private companies in the country. Customers.ai ranked #1286 on the prestigious Inc. 5000 list and #69 in the technology services category. The list is a one-of-a-kind look at the most successful companies of today and tomorrow. Facebook, Chobani, Under Armour, Microsoft, Patagonia, and dozens of other household names first gained prominence as honorees on the Inc. 5000. Read Press Release
COMPANY NEWS
US INTEGRITY
Sports Illustrated named US Integrity's CEO & Co-Founder Matt Holt as #5 on the most interesting executives in College Football. U.S. Integrity is a leader in sports gambling monitoring, and its proprietary tracking software helps identify rules violators in the NCAA and other sports. Holt also recently was recognized for working with Rep. Dina Titus (D-Las Vegas) and the Nevada Gaming Control Board to help police any in-state wagering integrity issues. Read Sports Illustrated Article Read About Sports Betting in Nevada
COMPANY NEWS
AUTOMOTUS
International Parking & Mobility Institute (IPMI) recognized Jordan Justus, CEO & Co-Founder of Automotus, as the 2023 Emerging Leader of the Year. IPMI's Professional Recognition Awards were created to acknowledge professionals and organizations who operate, maintain, and manage parking and mobility operations at extraordinary levels and the individuals who are changing the perception of the industry as a career and profession. Read Announcement
COMMUNITY CONNECTIONS
PRIMETIME PARTNERS Alan Patricof
Alan Patricof hosted a fireside chat with NYA members in our most recent Forum. Alan is best known as a pioneer of the VC industry, and he now acts as Chairman and Co-Founder of Primetime Partners. Some of the major themes of their investments include helping family members with caregiving and addressing loneliness in the population. NYA members also received copies of Alan's recently published a memoir, No Red Lights, that details his career as an investor and valuable lessons learned along the way. Read Alan's Memoir No Red Lights
COMMUNITY CONNECTIONS
PRINCETON UNIVERSITY eLab Demo Day
Assistant NYA Director Jon Zaikowski was a panelist for Princeton's eLab Demo Day for student founders. Four student teams spent their summers working on their startups and pitched to panelists that included Jon, Christine Galib, and JP Parmigiani. NYA is looking forward to watching their progress and hopefully seeing these founders at New York Angels one day. Watch Demo Day 2023 Participants at Princeton Pitch
COMMUNITY CONNECTIONS
COLUMBIA UNIVERSITY Fundraising 101
NYA Member Nikos Theodosopoulos led an engaging session on "Fundraising 101 for Startups with New York Angels" hosted by Columbia University Engineering. Nikos discussed the basics with an expert from NY Angels: fundraising, the recent trends, and approaching investors. This is one of many great examples of how NYA members offer much more than just investment to the early-stage startup community. View Other Fundraising Resources from Columbia
MEMBER PERSPECTIVES ARE YOU A GREAT FOUNDER?
There is an old adage in Angel investing that the investor should back the jockey, not the horse. While the product and business model certainly matter, the founder is the most important factor in the success of the company. As New York Angels has received thousands of applications and inquiries, many have asked us: what constitutes a good founder and what do Angels look for in a founder? Consequently, we decided to harness the collective wisdom of the group and asked our members about the most important attributes of great founders. Read Article
US FED ANALYSIS OF THE SVB COLLAPSE AND VC MARKET IMPLICATIONS
Economists Yueran Ma and Kaspar Zimmermann find that rate changes in the past decade "have had noticeable effects on innovation funding such as [venture capital] investment."
In the era of rock-bottom rates, there was a flood of venture funding and startups were booming. The opposite has been the case since interest rates started to rise rapidly in 2022.
The authors find that after monetary policy tightens by 1 percentage point, spending on research and development declines by as much as 3 percent, while VC investment slumps by about 25% one to three years following the tightening.
Funding has slumped, with less-than-ideal consequences for cash-hungry startups.
"A slower pace of innovation may then have lasting effects," the economists write.
"[R]ecent breakthroughs in AI raise the hope that another technological revolution could be on the horizon, and maximizing the benefit of the technological breakthroughs is important," the authors add.
Investment Forum (Hybrid):
• September 18th (9:30 AM - 1:30 PM)
October Screening (Virtual):
• October 4th (9:00 AM - 1:00 PM)
FOUNDER DEADLINES
October 4th Screening Application:
• Due Sept 13th
*New York Angels, Inc. ("NYA") is a not-for-profit corporation that is funded by membership dues for individuals and/or entities that NYA has designated as members as well as from certain sponsors. Its purposes include providing administrative support to its members. NYA does not invest in companies. Investments, if made, are made by individual members of NYA.
