May 2020

We are all grateful that New York and the Hudson Valley are on the downside of the curve with COVID-19 cases declining. While the health risk will remain with us until the vaccine is available, we may be seeing just the beginning of the economic impact. All the more reason for HV entrepreneurs to stay connected. 

Our HV Entrepreneur Collaboration Huddles are continuing every Thursday, Noon - 1pm through the end of May. Each huddle has collaboration around a specific topic and an open collaboration where all the participants can ask questions or share the “ground truth” of what we are actually experiencing and share best practices or other helpful info. 

For upcoming Collaboration Huddles, and recordings of past Huddles, see Events.

Entrepreneurs

Statebook’s Viral Insights Helps Power Pandemic Response & Recovery Decisions

Though the negative impacts of the coronavirus pandemic are undeniable, the situation has also created opportunities to do good and do well. Few illustrate this better than HV Startup Fund portfolio company Statebook International, a premiere provider of location intelligence, data and analytics. 

Statebook recently developed Viral Insights, an application designed to help communities understand the pandemic’s impact and craft responses that maximize the use of their available

Viral Insights layers Covid-19 case data (broken out down to the county level) with data for factors like age and pre-existing conditions to help government agencies and companies understand what percent of the population is at greatest risk. HPSA data — health professional shortage area — also helps identify areas that are underserved by medical providers. 

On the economic side, data related to lost wages, unemployment claims, and the commercial and residential rents at risk also guide the decision-making process for local and regional leaders, lending institutions, and others. 

As Statebook’s CEO, Calandra Cruickshank noted, “Viral Insights was built to enable data-driven decision making to help protect people, businesses and the economy and easily identify where the highest risks are from Covid-19 and how best to allocate resources. It’s incredible what well structured data and powerful technology can accomplish together.” 

The project came about during a casual Friday evening conversation between Ms. Cruickshank and her counterpart at NavigatorCRE, a firm that animates data to provide actionable insights. By the next morning, teams at both firms were feverishly working away to identify and clean data and visualize it on the new Viral Insights’ website. They had an initial structure in place before the weekend was over. 

Over the next week, refinements continued and the product was released the following week. The application is currently available for free to all users and is particularly beneficial for municipalities addressing pandemic-related concerns as well as companies developing strategies to safely bring employees back to work. Customized versions are available for a fee for investors, property owners, and others to help guide post-pandemic decision making.

For more information, contact admin@statebook.com. 

Investors 

Investing in Turbulent Times

Despite the unsettled economic conditions in the Hudson Valley, the U.S., and beyond, there are still investment opportunities in companies that are positioned to weather the pandemic-related storm. HV Startup Fund has continued its conversations with startup firms in a range of industries from those, like travel, that are particularly hard hit by current restrictions, to others that are likely to see their markets grow. 

Aspisafe is an excellent example. Its flagship device is a medical device designed to prevent reflux and aspiration pneumonia. (Technically it is a nasogastric that has a proprietary communicating balloon technology built in.)

Aspisafe’s new device could help reduce pneumonia in certain patient populations, which would eliminate billions of dollars worth of complications and improve patient outcomes by shortening hospital stays. 

The firm has also developed a nasogastric tube holder called NG Guard. NG Guard decreases a patient’s ability to remove a nasogastric tube and it can be used with the Aspisafe NG tube as well as other nasogastric tubes on the market. 

Aspisafe is working toward FDA approval of both devices via direct porcine trials and marketing trials in humans and HVSF is nearing completion of its due diligence process prior to investment.

Remote learning is another area posed for growth as markets stabilize. Lessonbee, based in Mount Vernon, NY, develops health class curriculum and offers a delivery platform for secondary schools throughout the U.S. as well as individual teachers and parents. As more educational institutions develop plans for delivering instruction via distance learning if necessary, startups like Lessonbee are positioned to grow as they help educators fulfill their mission cost effectively.

Investing is not without risks at the moment – it never is – but it’s worth remembering that early stage investing trends do not track with broader equity markets. 

Entrepreneurs and investors seeking more information on the HV Startup Fund can contact Andrew Schulkind, Managing Member, at info@hvstartupfund.com.

Leaders

Marist College hosted the 8th Annual Mid-Hudson Regional Business Plan Competition on April 17, 2020 on a virtual platform and welcomed 33 teams, with over 90 students, from ten different colleges in the Mid-Hudson region which included: SUNY New Paltz, Bard College, Iona College, Marist College, Rockland Community College, SUNY Purchase, Touro Graduate School of Technology, United States Military Academy at West Point, Vassar College and Westchester Community College.

With support from Marist College and area sponsors, cash prizes were awarded to the first and second-place teams in each category. These winners will move on to compete at the state level. Congratulations to the following team members and advisors from their respective colleges who won first and second place in six different tracks at the regional competition.

This year, unlike any previous years, the Mid-Hudson region, as well as the other regions in NY, were challenged and faced with a decision to go to an online format. With the support of most of the regions, the New York State organizers, and Marist College, a mutual decision was made to use a virtual platform in a relatively short period of time. Interestingly, the Mid-Hudson region had 33 teams register to compete virtually which was more participation than in most of the regions in the state. 

“We anticipated a drop in participation this year because our submission deadline was at the same time as when the COVID-19 crisis seemed to really hit the U.S.  Students were being sent home for spring break, were told they may not be coming back to campus and needed to adjust to finishing their course work online”, stated Cynthia Worrad, Assistant Dean of the School of Computer Science and Mathematics at Marist College. Ms. Worrad continued by stating, “to our surprise, the response by the students was enthusiastic and determined to compete this year even with all the challenges they were facing. It inspired us all to provide the best experience possible for these creative and talented students. We are so proud of their hard work and determination”.   

The student competitors brought excitement and motivation which removed us from the constant reminder of the COVID-19 crisis.  Many of the advisors noted that this competition provided a diversion that students needed. Roberta Diggins, co-coordinator of the MHRBPC said “new challenges seem to rise every day but as long as we can rise to meet these challenges, we can be proud of our successes.”  

Marist’s President Dennis Murray opened the award’s ceremony and greeted over 120 people on WebEx. He spoke of the history of the college and invited everyone to visit during better times. New York State Senator Sue Serino addressed the group by video. Serino has been a constant supporter of this event, the entrepreneurial spirit and the opportunities it brings, not only to the Mid-Hudson area but to all of the regions in New York state. Awards were given virtually and lots of congratulatory emails followed. We are so proud of all the student competitors.   

This event was made possible by the generosity of our sponsors. We would like to thank sponsors TD Bank, Marist College’s School of Computer Science and Mathematics, Marist College’s School of Management, Hudson Valley Economic Development Corporation, Hudson Valley Startup Fund, Small Ball Marketing and SCORE.  

Service Providers

Focused Financing is an alternative lending marketplace that simplifies the borrowing process for small businesses. With the goal of addressing inefficiencies in the lending environment for underserved businesses, Focused Financing has created a service built around the client, not the lender.

Using a tech-enabled approach to pair business loan requests with best-fit lenders, Focused Financing’s underwriting model factors all of a business’ needs into consideration in order to deliver a solution unique to each applicant.

Focused Financing was founded on the principle that obtaining business funding should be as simple and straight-forward as possible. Small business owners wear more than enough hats in running their operations and should not have to worry about securing capital while managing everything else. The Focused approach streamlines the loan shopping experience by facilitating access to more than 100 lending partners through one centralized application.

As lenders bid on a client’s request, Focused Financing’s business consultants are available to assist in selecting the best funding option for each situation. In most cases, funds are available within 24 hours from the time of application, with select programs available for same-day funding. Financing options are available nationwide, as well as in Canada. Focused Financing is based in New Paltz, in the Hudson Valley, NY.

 Focused Financing offers a suite of products to accommodate all borrower needs:

• Accounts Receivable Factoring
• Business Term Loans
• Debt Consolidation
• Equipment Financing
• Lines of Credit
• SBA-Backed Loans
• Working Capital Funding

In light of the COVID-19 outbreak, Focused Financing has been working with its lending partners to offer the SBA Paycheck Protection Program (PPP) under the CARES Act. Although funds from the first tranche have been exhausted, applications are still being processed on a first come, first served basis for subsequent rounds of capital.

For more information, please visit www.FocusedFinancing.com or email Info@FocusedFinancing.com.

Before Silicon Valley, The HV

By Donald J. Delaney

Marshall & Sterling: Insurance – Financial Services Entrepreneurs

From side business to .0179%

In horse racing and entrepreneurship is it better to bet the jockey or the horse?

If, in 1864, you were offered the opportunity to invest in a business startup led by one of four Poughkeepsie early entrepreneurs, Samuel Morse, Joseph Marshall, Matthew Vassar, or the Smith Brothers, who would be the winning bet in 2020?

1. Joseph Marshall - Marshall & Sterling Insurance (1864 - 2020)
2. Wm. and Andrew Smith - Smith Bros. (1866 – 1963)

1. Matthew Vassar - M. Vassar Brewing (1867 – 1896)
2. Samuel Morse – Magnetic Telegraph Company (1846 – 1859)

.0179% are the odds of a ‘startup’ business reaching year one hundred.

Insurance? In 1864 insurance was a new ‘carriage trade’ financial product, meaning a product and service for the top 5%. A young Joseph Marshall had the makings of a budding entrepreneur. In his thirties and married, Marshall established his reputation for manufacturing ‘high-end’ custom carriages and sleighs. Insurance created a perfect product, market fit, and a personal entrepreneurial opportunity. He built a startup side business into an insurance brokerage business, with the Vanderbilt Family being a ‘trophy’ client.

Enter Graham Sterling (1898 - 1946 ), Charles Hoyt Smith, Sr. (1920 – 1931), Charles Hoyt Smith, Jr. (1931 – 1979). These three owners and CEOs raised Marshall & Sterling from a prosperous family business into a branded market leader and pillar of the business community.

Did Marshall & Sterling’s successful entrepreneurial journey from side business bode a plateau or a platform?

Smith, Jr. spotted a growth opportunity in St. Croix, U.S Virgin Islands. Like Richard Branson’s entrepreneurial juggernaut with the Virgin Group, Marshall & Sterling has created 24 branches and 10 subsidiary corporations. The leadership team of John O’Shea, Tim Dean, Ed Kenealy and Charles Smith, Jr. built on Joseph Marshall and Graham Sterling’s entrepreneurial insurance legacy. Marshall & Sterling is a financial services platform approaching the billion-dollar mark.

End Note - Within walking distance of Market and Main in Poughkeepsie, NY, the American Constitution was ratified, Smith Bros. launched one of the first iconic brands and branding, entrepreneur Matthew Vassar created Vassar College and educational philanthropy, and Marshall & Sterling continues on its entrepreneurial journey, 1864 - 2020.

This Before the Silicon Valley, the Hudson Valley blog offers a 400-year narrative journey honoring the Icons of entrepreneurship and their impact on invention, innovation, and commercialization in the Hudson Valley. 

Contact welcome: Donald J. Delaney, HV Entrepreneurship Historian & Blog Writer for the HV Venture Hub. You can reach Don at don@dondelaney.com

© Donald J. Delaney 2019

Events / Jobs 

HV Entrepreneur Collaboration Huddles

Our HV Entrepreneur Collaboration Huddles are continuing every Thursday, Noon - 1pm through the end of May. Each huddle has collaboration around a specific topic and an open collaboration where all the participants can ask questions or share best practices or other helpful info. 

No need to register. You can Join Webinar Here with meeting number Meeting ID: 973 3800 1334, Password: 708340, One tap mobile: +1-929-436-2866, 97338001334#, 708340# US (New York)

Schedule of upcoming Collaboration Huddles

• May 7: Consolidation for Scaling: Rushdi Siddiqui, Co-Founder & CEO of Vaistra
• May 14: Solopreneurs: Lauree Ostrofsky, Founder, Simply Leap
• May 21: Small Business: Frank DeRaffele, Executive Director, Business Networking International HV
• May 28: Finding HV Talent: Kale Kaposhilin, Co-founder, Moonfarmer

If you missed a prior Huddle, see the recordings below :

• Huddle Recording April 9: Surviving...then Thriving: Rachel Hawkes, Co-Founder, ViaHero, Daniel Leader, Founder and Chairman, Bread Alone, Dennis and Julie Roche, co-founders of Burbio, Jeff Werner, Founder and CEO, The Field Group, Richard Zack, Founder and CEO, our.news
• Huddle Recording April 16: Funding - Pre-Seed and Seed: Tony DiMarco, Founding Manager, HV Startup Fund, Managing Director, GCSEN Foundation, Danny Potocki, Managing Director, Accel7 (Impact Accelerator), Nicole Hartwig, design strategist, founder and CEO of Capri for Girls
• Huddle Recording April 23: Funding - Series A and Beyond: Leon Greene, Manager, HV Startup Fund
• Huddle Recording (need to insert link after Thurs 4/30) April 30: Strategic Partnerships: Tony Fareed, Managing Director, Bridge Global Capital Group, 360accel

Other Upcoming Events & Programs

• May 11 (Zoom): Hudson Valley Womxn in Business meeting on Expanding in the Midst of Challenge, 6:00pm – 8:00pm
• May - July: (Zoom) Good Work Institute online workshops: Introductions to Just Transition; Social Equity Practice; Mindfulness and Activism

 Job Opportunities

• Commercialization Fellow, Empire State Development (ESD), Albany, NY
• Ulster County is seeking a Deputy Director of Economic Development to help lead the economic recovery from COVID-19 and build a stronger, more resilient and equitable economy in Ulster County. Applications may be directed to Lisa Berger, Director of Economic Development at oed@co.ulster.ny.us

Comments? Email Tony DiMarco at dimarcoa@newpaltz.edu