43North's $1 Million Investment Opportunity

Being born and raised in Buffalo, NY, I have always loved my hometown city. If you are curious about why, I recommend you check out “The Incredible History of Buffalo, NY In 5 Minutes”, which I shared in the Huffington Post a few years ago.

Scott Wayman of Kangarootime, after winning 43North in 2017

In 2014, Buffalo started 43North, investing $5M per year to attract and retain high-growth companies in Buffalo, NY. Fast forward to 2017, and after meeting Scott Wayman, the founder of Kangarootime, at a Founder Institute event in Silicon Valley, I recommended the company to 43North. Kangarootime ran with it and crushed it. First, securing an initial $500k investment from 43North, and then subsequently more follow on funding. They have since grown a significant presence in Western New York and continuing to build a great company! 

Then in 2018, one of my Founder Institute New York portfolio companies, Teddy Mozart, received a large purchase order from QVC. A massive break, but they needed help financing the inventory to fill the QVC order. Carlton, the founder, told me he found Kickfurther, which secures inventory funding via their marketplace of investors. Through Kickfurther, Teddy Mozart managed to get the funds needed to fill the QVC order in less than 72 hours! I told this story while helping to deliberate the final investment decision in 2018, and I like to think it helped play a role in Kickfurther joining the 43N portfolio that year! 

Now in its seventh year, the competition offers eight new startups a chance to secure up to $1 million in funding and land a spot in 43North’s next cohort. I have joined the team to help select this year’s companies, and we are currently accepting startup applications for $500k to $1m in investment until July 19th! Investing in founders with deep domain expertise and early traction for their high-growth startup! 

If you or someone you know might be a good fit, visit 43 North to apply, or feel free to text me at +1 (646) 907-6669 if you would like to connect directly about the opportunity!

Closing A Chapter

Queue the music! It’s time to turn and face the strange. Ch-ch-ch-ch-changes.

After almost five years as Managing Director of Founder Institute New York, I will be moving on to my next adventure. I first became involved with Founder Institute back in 2012 as a founder in the program, before signing on as Director the New York program in 2015. I am very proud of the growth Founder Institute has had over that period of time, both on a global level, and across New York.

On a global level we have scaled Founder Institute to almost 200 cities around the world and I have been very fortunate to meet amazing founders, mentors, and ecosystem leaders from every corner of the planet. Last year we managed to bring Founder Institute back to my hometown of Buffalo as well, a feat which I am immensely proud of.

In New York in particular, I feel fortunate to have worked directly with over 150 founders as they launched their companies. Watching a person manifest something out of nothing, based on purely will, has always been a fascinating & rewarding process for me. It has been an amazing experience to get in the trenches and help with the day to day problem-solving founders have to face. Digging in on team formation, branding, customer development, revenue models, legal, go-to-market, product development, scaling growth, fundraising and more. I loved every minute of it and can not wait to see how these founders evolve alongside their companies.

These past few years would not have been possible without some of the amazing people around me, especially those who went to bat for me when I was starting out, to allow me this incredible experience. Many of whom I have previously featured on this blog and my podcast. You know who you are, and I just want to say thank you! And of course, a massive thank you to the founders and global team at Founder Institute who I had the amazing experience to work with. Rest assured, I am not going anywhere though! You all know how to reach me.

My personal mission is to “Help founders improve the lives of one billion people” and I have no intention of stopping now!

I have some very exciting announcements coming shortly regarding my next chapter!

The Inaugural Founder Institute Buffalo Cohort

Founder Institute Buffalo

I am very excited to say that we have graduated the Inaugural Founder Institute Buffalo cohort on July 18th. Nine new companies and founders graduated from Founder Institute Buffalo from our Spring cohort. The companies represented several industries ranging from fashion, to electric vehicles, to daycare and more.

I want to thank the Buffalo Mentors and the Founder Institute team for all the hard work and time put into helping the founders of FI Buffalo 2019. As well as the rest of the amazing local director team; Scott Wayman, Lauren Baynes, & Cody Semrau! I want to also thank the founders of FI Buffalo 2019 and I am very excited to continue supporting them on their journey. 

Founder Institute Buffalo 2019

Bands To Watch - Fan engagement platform for venues and artists.

Eco-Carriage - Providing alternative fueling, sourced from zero-emission energy resources. 

FashInPost - Realtime fashion feedback.

Inacquis - Attract and screen the next generation of talent.

Kubed Root - Indoor co-farming.

Lint - Modern wash and fold.

Reiner United - Unique online storefronts.

SmartPlay Playcare - A new kind of day care solution.

Third Estate Analytics - Driving neighborhood change with data.

Yahoo's Katie Couric Features Buffalo In "Cities Rising: Rebuilding America"

Katie Couric recently paid a visit to Buffalo New York for her new series "Cities Rising: Rebuilding America". Since visiting the region she now states that "Buffalo Is Back!" with part 1 of her new series. The goal of this six part series is to highlight key cities in America that were once thriving, then fell on hard times during the last 100 years, and are now being rebuilt into the 21st century.

I am really proud of all the great people in the Buffalo region working hard to improve the local startup ecosystem. Some of the people in the Buffalo startup community that I been working to make an impact in the last year include:

• Steve Poland
  • Managing Director of Z80 Labs
• Michael Serotte
  • Immigration Legal Partner at Unshackled Fund
  • Founding Partner at Serotte Law
• Dan Gigante
  • Digital Director, Partner at 19 IDEAS,
  • Founder & President at You and Who
  • Director of Founder Institute Buffalo
• Jon Spitz
  • Director of Development at 43 North
  • Director of Founder Institute Buffalo
• Peter Burkowski
  • Director of Marketing at 43 North
• Oscar Pedrosa and David Brenner
  • Thimble
• And Many More

I know I have written about the surge of entrepreneurship in Buffalo before as well as its incredible past history, but I really am excited for the future of my hometown Buffalo, NY. I am proud to say I am from Buffalo. Be sure to watch part 1 on Buffalo in Katie Couric's series "Cities Rising: Rebuilding America" above.

Clark Dever of Heads Up Display Talks Wearables, Travel, and Elon Musk's Solar City in Buffalo on Ambition Today

On this episode of Ambition Today, I was joined by Clark Dever. Clark is the founder of Head Up Display, a visual notification system for workers in hazardous environments. 

Today we discuss how to travel the United States of America for only $600, the future of e-sports entertainment, and how to compete with Google Glass and Oculus Rift. Also, how do you grow a startup ecosystem out of a an industrial renaissance? Buffalo N.Y. may have the answer. Elon Musk's Solar City, ecosystem driving programs like Z80 Labs and 43 North, and affordable cost of living are some of the things driving Buffalo forward as a startup city. 

Be sure to listen and subscribe to Ambition Today in the iTunes Store for iOS and on Stitcher for Android. 

Ambition Today Podcast Sponsors:

Entrepreneurial Spirit Is Driving Buffalo Forward

In recent years, much has been made about how the entrepreneurial movement is modernizing the American dream. Markets like San Francisco and New York City are home to some of the world's most recognizable startup success stories. And with good reason - being the top dog in a competitive market brings with it the advantages of recruiting top talent, visible press, and the ability to raise the innovative bar. But as billion dollar companies set up shop in big markets, a new generation of innovators is turning to midmarket cities to incubate their bold ideas. Cities like Buffalo, NY are making this possible. Buffalo is channeling its legacy of hard work - dating back to its heyday as a turn-of-the-twentieth-century giant - into a new push for entrepreneurial progress. Satish K. Tripathi, co-chair of the Western New York Regional Economic Development Council, and President of the University at Buffalo, perhaps said it best. The city is "open for business."

Taking a step back, Buffalo's innovative future is rooted in its time-tested work ethic. Last December, I reposted a video that discussed Buffalo as a city of firsts. From Frank Lloyd Wright to Theodore Roosevelt, the city boasts an impressive list of big thinkers with lasting impact. Of course, the city has experienced more than its fair share of setbacks. Following the 1950s opening of the Saint Lawrence Seaway, shipping and other industries moved elsewhere, businesses went vacant, and population decreased.

But today a number of trends indicate that the city is positioned for an entrepreneurial resurgence.

• A New Youth Movement - According to census data analyzed by the New York Times, from 2000 to 2012 the number of college graduates (ages 25-34) in Buffalo jumped 34 percent - more than Los Angeles, New York, Chicago, or even Boston.

• An Attractive Business Destination - A number of factors including access to an international border, a strong labor force, and low operations cost are gaining attention. Elon Musk's SolarCity made headlines last September with its announcement to commit 5 billion in Buffalo, while creating 3,000 new jobs. Beyond U.S. borders, a growing number of Canadian companies are also investing, leading to an even stronger startup corridor in the Golden Horseshoe - the densely populated region on the west end of Lake Ontario, stretching from Buffalo to Toronto .

• Renewed Sports Franchises - Not to be overlooked, Buffalo is also attracting new talent on the football field and in the hockey rink. The Bills and Sabres - arguably pivotal economic and emotional heartbeats of the city - are sporting new leadership with owners Terry and Kim Pegula and with the recent head coach hires of Rex Ryan and Dan Bylsma.

Within this movement, a number of newer companies face challenges of raising capital. To address this, organizations like 43North are incentivizing companies from around the world to incubate their ideas in Buffalo - with the potential to win up to $1 million. With support from New York State Governor Andrew Cuomo's Buffalo Billion initiative and the New York Power Authority, there is heavy commitment and high stakes in the organization, which last year received registrations from 96 countries and 50 states. The 11 winners from 2014 now share space in a new incubator at Buffalo Niagara Medical Center - specifically created to engage a collaborative entrepreneurial community.

As they wrap up registration this month, 43North wants to continue the momentum by focusing on quality global registrants to attract the best ideas the world over. This concept of exacting change through entrepreneurism is what's driving Buffalo forward. It's a bold venture for a city to bet on bright ideas and put them into action. But it's a critical step, with potentially high reward, in restoring the brightness to America's City of Light.

Why in 2014 Buffalo is a (Sports Teams) Dream Location

As we know, in other places across the planet Buffalo does not always have the best reputation of itself. Our sports teams are at times laughed at and our economy is well, lets just say “rust belt-ish”. While I cringe every time I hear these claims shouted at my hometown it is hard to deny they are not sometimes routed in truth, especially for the first decade of this new millennium.

Now Buffalo seems to be divided. There is the first faction who faithfully follows where ever the city and its teams lead them. They sell out one of the largest football stadiums in the nation even as the Buffalo Bills missed the playoffs for the 14th season in a row. Then we have the other faction. This consists of those who have fallen out of the former group. Those people who due to the process of constant disappointment have fallen victim to a mood of permanent and lasting skepticism.

I do my best to stay up to date with the happenings and news in Buffalo while watching everything develop from New York City. Lately it has begun to appear to me (a person living in the world outside WNY, looking in) that the winds are changing in Buffalo. Slowly, sometimes slower than I would like, it appears things are turning around for the better in Buffalo.

Investors will tell you to never ignore a market when it is in a recession. That is when you can buy in at a time when the market has currently undervalued its goods. Goods can only become so cheap in a region before investors see growing opportunity to buy in at the bottom level and maximize potential profits. This is what appears to be happening in Buffalo. Forbes recently validated this is the case in the Western New York Region when it named Buffalo the Most Affordable City in America.

HARBOR CENTER

A few examples: recently 43 North has launched a $1 million dollar prize to attract start ups to fill the cheap and available office space downtown. Avant Buffalo has spent $85 million building up luxury condos and office space. Gov. Andrew M. Cuomo has pledged the Buffalo Billion to the Region.Chippewa Street is becoming classy. And to get to my point, Terry Pegula has bought the Buffalo Sabres and is now also building the Harbor Center.

As Warren Buffet says “Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”. Terry Pegula knows this is and is doing what all the rest of the investors are doing in Buffalo. He saw a market opportunity to buy in at an all time low price and did just that. Just as many smart investors, who are now very rich, did just after the .com and housing bubble’s burst.

““Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”
”

— Warren Buffet

 

In the case of Forbes naming Buffalo the most affordable city in America we can see that might not be the best image for Buffalo currently. The most powerful cities tend to correlate with the most expensive ones. Just visit New York City or London. However, this weak perception can also be a strength. Just ask Malcolm Gladwell who’s new book underlines the advantages and importance of being under rated. It is definitely a sign that the opportunity to invest in the region is happening now and investors recognize this. This affordability can be an opportunity for Buffalo Sports too. A great example of this was recently pointed out by Buffalo Down:

• Players can live like royalty in Buffalo for far less than most NFL cities.
• $7 million in Buffalo is like $9 million in Houston, or Dallas, or pick your “Big Market Team”.

So affordability gives us the potential opportunity to attract bigger talent at lower contracts.

Buffalo now finds itself where it lives best; as the Underdog. Terry Pegula bought in on the ground floor and stands to make a lot of money over the next 20 years, while his investments ride out. The best part of this is that he will most likely bring the city and the teams along for the ride with him. We are at a catalyst moment in Buffalo. The key to making the opportunity ahead of Buffalo have a long lasting and perpetual growing impact is that we all get on board and realize it is happening. There can be no more skepticism and false beliefs. Now is a time for action.

So in the next few months as you live in Buffalo, do yourself a favor and look around. Take it all in and remember the Buffalo of now. I believe after years of watching Buffalo just get by, both economically and in the world of sports, it is time we all stop just circling the wagon and finally get on board full speed ahead!