Speaking of Startups

Today, we welcome Derek Wang, founder and CEO of Stratifyd, to the Charlotte Angel Connection. Derek was raised in Beijing and moved to the United States to obtain his Ph.D. from UNC Charlotte.  While attending UNC he spent time on the West coast working with Microsoft Research and PARC.  Derek became a Professor at UNC Charlotte and realized AI was being controlled by large companies.  He wanted to deliver the same benefits the large companies were exploring to companies of all sizes. Stratifyd is a startup headquartered in Charlotte, NC. The company has been designed to equip business leaders worldwide with deep intellectual business insights in minutes instead of months. Since its founding, Stratifyd has evolved into an Augmented Intelligence platform that leverages machine learning technology with human intellect to empower businesses to make data-driven decisions.  The platform is built on their patented algorithms that leverage Machine Learning (ML) and Natural Language Processing (NLP) for any businesses. I had the benefit of doing an interview with Derek at Packard Place in February 2019 and it was my first time meeting him. Very quickly I became a fan of Derek’s and saw the charisma and passion he puts into Stratifyd. In this podcast, the goal was to let our audience hear from themselves the type of leader Derek is.  We talk about the business but also the world surrounding the business with topics like have Georgian Partners as an investor (listen to my podcast from last year with Tyson Baber from Georgian Partners where among other things we talk about their investment in Stratifyd and Derek here), when and how did Derek know it was time to raise money, and what’s the impact machine learning is going to have on the future of our kids. He speaks about why he did a startup in Charlotte and his experience during the early days of the company.  We dive into how he processed the first ‘no’ in the fundraising process (super cool to listen to this part). Derek discusses what it takes for leaders to inspire.  The importance of being frank and honest and ability to attract talent.  He explains what Statifyd needs to improve upon in the next decade, the limits of machine learning and benefits, and the biggest hurdle of AI. At the end of the podcast we speak about Stratifyd’s milestones for 2020.  It’s a great podcast and insight into a company that is clearly driving Charlotte into the new decade.  Enjoy this edition of the Charlotte Angel Connection.   William Bissett is the owner of and an Investment Advisor Representative of Portus Wealth Advisors, a Registered Investment Adviser. Registration does not imply a certain level of skill or training. Opinions expressed on this program do not necessarily reflect those of Portus Wealth Advisors. The topics discussed and opinions given are not intended to address the specific needs of any listener.  Portus Wealth Advisors does not offer legal or tax advice, listeners are encouraged to discuss their financial needs with the appropriate professional regarding your individual circumstance.  Investments described herein may be speculative and may involve a substantial risk of loss. Interests may be offered only to persons who qualify as accredited investors under applicable state and federal regulation or an eligible employee of the management company. There generally is no public market for the Interests. Prospective investors should particularly note that many factors affect performance, including changes in market conditions and interest rates, and other economic, political or financial developments. Past performance is not, and should not be construed as, indicative of future results.

Today we welcome the Principals of Dualboot Partners to the Charlotte Angel Connection. Dualboots mission is to partner with seasoned business leaders and entrepreneurs to build and transform businesses.  If you’ve been to any startup event over the last 12 months you’ve seen someone from the dualboot team there.  seasoned technology veterans with a long and proven track record of building new products and re-platforming legacy systems. There is no question they have a goal to be an important fabric, in not just Charlotte but, the southeast startup community. They are building a nice team and have already worked with several successful Charlotte area startups – like Petscreening.com (remember David Stunja from Episode 090) – and many more.  Given the impact they are having on the startup scene here locally I wanted to have them on to talk about who they are and how they are doing. As a little background, prior to Dualboot they all worked together in the past and have expertise in different areas. Todd Buelow’s, career is anchored at the intersection of entrepreneurship, people, and digital. Todd has over 20 years of experience managing digital products and serving as a catalyst for growth. Daniel DelaCruz began his career focusing on asset management, banking, and capital markets at PricewaterhouseCoopers. Before founding Dualboot Partners, Daniel was the VP of Finance and Operations of a digital agency. Ben Gilman spent more than 15 years building software products and has been intimately involved at every level of the software development process. In today’s podcast, we discuss many fun and interesting topics including how they bring a product to market using remote teams - they currently have 7 people in US (with no “central office”) and 60 developers remotely in Davidson, Russia, and Uruguay. As such, we naturally discuss onshore versus offshore capabilities and how companies benefit from both. We also dive into the tricky topic of how long they can/should stay on as the development team for a company. As always, we discuss the opportunities of the Southeast region over course of the next 10 year including their own their vision, and where they want to be in 5 years. We also get talk about the lessons they have learned by working with startups – including the importance of having a good network when you are thinking about starting your own company. Hope you enjoy this edition of the Charlotte Angel Connection.   William Bissett is the owner of and an Investment Advisor Representative of Portus Wealth Advisors, a Registered Investment Adviser. Registration does not imply a certain level of skill or training. Opinions expressed on this program do not necessarily reflect those of Portus Wealth Advisors. The topics discussed and opinions given are not intended to address the specific needs of any listener.  Portus Wealth Advisors does not offer legal or tax advice, listeners are encouraged to discuss their financial needs with the appropriate professional regarding your individual circumstance.  Investments described herein may be speculative and may involve a substantial risk of loss. Interests may be offered only to persons who qualify as accredited investors under applicable state and federal regulation or an eligible employee of the management company. There generally is no public market for the Interests. Prospective investors should particularly note that many factors affect performance, including changes in market conditions and interest rates, and other economic, political or financial developments. Past performance is not, and should not be construed as, indicative of future results.

Today we have Brett Danforth, Managing Director of the Wolfpack Investor Network (WIN), and Ghazale Johnston, WIN member/investor, joining us to discuss angel investing. “The Wolfpack Investor Network (WIN) brings together the NC State entrepreneurial community, NC State alumni network, and innovative private companies to empower the businesses that drive our future.” It is operated as a subscription service with direct ties to the University.  The annual membership is $1,500 with no requirement to invest (think of it as a fee to see deal flow with the potential to invest in each company).  As of our interview in September 2019, they have 150 members and 115 members have made at least one investment through the network.  WIN currently has nineteen companies in the portfolio - 15 of those include NCSU graduates in Management and four involved in licensing in technology. Brett Danforth is the Managing Director at Wolfpack Investor Network.  Brett is a graduate of NC State.  Prior to WIN, he worked in financial services/investment banking. Ghazale Johnston also attended NC State and was a Managing Director with Accenture for 20 years. She now serves as the Chief Operating Officer for Daymaker. During the podcast Brett discusses the business model of WIN.  He explains their process of communication to potential investors, and the diligence process.  He also shares how they work with other networks in the triangle area (Duke, Carolina Angel Networks) and explains how people with ties to NC State can become involved with WIN as an investor. Ghazale discusses how she became involved with WIN.  She also shares her experience as a member how she reviews the companies presented by WIN to decide whether or not to invest.  Additionally, we talk through the benefits she finds to being an active member of WIN. Listen to the podcast, the benefits of being a member, and learn how to become a member and the benefits of being a member.  Enjoy!   William Bissett is the owner of and an Investment Advisor Representative of Portus Wealth Advisors, a Registered Investment Adviser. Registration does not imply a certain level of skill or training. Opinions expressed on this program do not necessarily reflect those of Portus Wealth Advisors. The topics discussed and opinions given are not intended to address the specific needs of any listener.  Portus Wealth Advisors does not offer legal or tax advice, listeners are encouraged to discuss their financial needs with the appropriate professional regarding your individual circumstance.  Investments described herein may be speculative and may involve a substantial risk of loss. Interests may be offered only to persons who qualify as accredited investors under applicable state and federal regulation or an eligible employee of the management company. There generally is no public market for the Interests. Prospective investors should particularly note that many factors affect performance, including changes in market conditions and interest rates, and other economic, political or financial developments. Past performance is not, and should not be construed as, indicative of future results.

Today, we have Richard Maclean joining us on the podcast.  Richard is a co-founder of Frontier Capital – a Charlotte area growth equity firm he co-founded in 1999 with Andrew Lindner. Richard has seen Frontier Capital grow quickly over the years.  Their second fund raised $115 million in 2007 and Fund V raised $700 million in 2017.  They have started the process of raising capital for Fund VI and it will be exciting to see where they finish given their strong team and track record. So where do you start with a co-founder of a growth equity firm whose seen success for many portfolio companies as well as his own firm?  We obviously start with the first check they ever wrote to a portfolio company.   From there we dive into a number of great discussions. Richard discusses Frontier’s original business plan in 1999 and how it has changed.  He speaks about the lessons learned from their first two investment funds and what it has been like seeing their subsequent funds grow into the company it is today. We discuss how the growth equity space has changed over the last twenty years.  And we dive into the challenges of early stage investing, Frontier’s biggest struggles today, and the phases of growth. He also discusses competition, the importance of continuing to innovate, and of having the right team in place. We also touch base on some current events such as the WeWork IPO (prior to the collapse of the IPO) and how Charlotte has become a technology hub. What comes of it is a great discussion with a founder who has been doing growth equity since the dotcom bubble and is guiding his firm into their fourth decade as the calendar turns to 2020. Hope you enjoy today’s podcast with Richard Maclean. A little more on Frontier When Richard and Andrew founded Frontier, they wanted to create a different kind of private equity firm - one with a personality and a soul. Frontier now manages capital for some of the world’s most sophisticated institutional investors and is recognized nationally as a trusted partner and a leader in growth capital for middle market software and services companies.   William Bissett is the owner of and an Investment Advisor Representative of Portus Wealth Advisors, a Registered Investment Adviser. Registration does not imply a certain level of skill or training. Opinions expressed on this program do not necessarily reflect those of Portus Wealth Advisors. The topics discussed and opinions given are not intended to address the specific needs of any listener.  Portus Wealth Advisors does not offer legal or tax advice, listeners are encouraged to discuss their financial needs with the appropriate professional regarding your individual circumstance.  Investments described herein may be speculative and may involve a substantial risk of loss. Interests may be offered only to persons who qualify as accredited investors under applicable state and federal regulation or an eligible employee of the management company. There generally is no public market for the Interests. Prospective investors should particularly note that many factors affect performance, including changes in market conditions and interest rates, and other economic, political or financial developments. Past performance is not, and should not be construed as, indicative of future results.

Today, we have Jarod Latch and Tim Baier joining us on the podcast.  Jarod and Tim are co-founders of Spiracle Media – a video content agency working with businesses to craft a better story to share. Jarod and Tim started Spiracle Media in 2011 while still working at different local news stations. They lived in a house together with a couple of other guys – Funday Monday was not a welcome addition to their neighborhood.  It took time living together but they finally came to a decision to start what is now Spiracle Media. Not surprisingly, the business started off with a different idea/concept.  It wasn’t until a surprise meeting with an existing client – listen for the story about a birthday cake– that the company turned into what it is today.  Tim and Jarod talk about several tough conversations they had to have as the conversation continued to grow. Tim also shares his first startup – a failure – and what it taught him. Jarod further expanded on the discussion as we learn his position was eliminated back in 2009 as a result of staff cuts in the last recession.  As such, we dive into the discussion and topic of failure some and what it really means. Listen in as we dive back into the early days of Spiracle to learn more about the original business plan and learn about their growth and expansion in Austin and potentially other fast-growing cities in the coming years.  We also dig into how two – or at the time, three – guys were able to execute a business strategy when they were ‘merely’ coming from the news world. What comes of it is a great discussion with two founders who are quickly growing and expanding their business into new markets.  Hope you enjoy today’s podcast with Spiracle Media.   William Bissett is the owner of and an Investment Advisor Representative of Portus Wealth Advisors, a Registered Investment Adviser. Registration does not imply a certain level of skill or training. Opinions expressed on this program do not necessarily reflect those of Portus Wealth Advisors. The topics discussed and opinions given are not intended to address the specific needs of any listener.  Portus Wealth Advisors does not offer legal or tax advice, listeners are encouraged to discuss their financial needs with the appropriate professional regarding your individual circumstance.  Investments described herein may be speculative and may involve a substantial risk of loss. Interests may be offered only to persons who qualify as accredited investors under applicable state and federal regulation or an eligible employee of the management company. There generally is no public market for the Interests. Prospective investors should particularly note that many factors affect performance, including changes in market conditions and interest rates, and other economic, political or financial developments. Past performance is not, and should not be construed as, indicative of future results.

Today, we have Jason Tuttle joining us on the podcast.  Jason is a Principal and a co-founder of Nova Capital Partners – a local real estate investment firm. Jason is a different guest for us. At Nova Capital Partners, they’ve spent the last 8 years (2011 – 2019) identifying under-appreciated real estate in the Carolina’s and raising money from investors to purchase each property - in a special purpose vehicle (SPV) type entity. After successfully doing it over 11 properties and continually providing income to investors, Jason and his business partner, Andy English, made the decision late last year to raise a real estate investment fund to allow them to make purchases as they arise without the constant need to fundraise.  They expect to close the fund in the next several weeks.  However, it will have an annual opening of which they will take new investor money. I’ve known Jason for 5 years now and have been constantly intrigued by their business model.  They aren’t interested in the glamorous real estate properties found in Southend or downtown.  They find profitable entities with solid anchor tenants and manage to grow and improve the tenant base over time with smart operational effectiveness. It’s not an angel investment.  It’s not a startup.  However, Jason and Andy are taking an approach to creating shareholder value that deserves to be heard and understood.  I’ve long been interested in how the ‘eat local’ movement will transition into something along the lines of ‘invest local’.  I think Jason and Andy are on the front end of seeing what that’s like. Listen in to learn more about their investment philosophy and hear Jason talk about the deal they walked away from last year (which in my view is a huge credibility boost to their approach).  And learn more about how the Buffett/Munger approach can be applied to more than just businesses.   William Bissett is the owner of and an Investment Advisor Representative of Portus Wealth Advisors, a Registered Investment Adviser. Registration does not imply a certain level of skill or training. Opinions expressed on this program do not necessarily reflect those of Portus Wealth Advisors. The topics discussed and opinions given are not intended to address the specific needs of any listener.  Portus Wealth Advisors does not offer legal or tax advice, listeners are encouraged to discuss their financial needs with the appropriate professional regarding your individual circumstance.  Investments described herein may be speculative and may involve a substantial risk of loss. Interests may be offered only to persons who qualify as accredited investors under applicable state and federal regulation or an eligible employee of the management company. There generally is no public market for the Interests. Prospective investors should particularly note that many factors affect performance, including changes in market conditions and interest rates, and other economic, political or financial developments. Past performance is not, and should not be construed as, indicative of future results.

Today, we have David Stunja joining us on the podcast. David is the COO of Petscreening.com which recently completed a Seed Round led by Grotech Ventures. Many of you know David, but for those that don’t he took the corporate America route before he joined Petscreening.com. David spent most of his career in Washington, DC before relocating to Charlotte and was a VP of Corporate Strategy for Bank of America. All along, he knew he wanted to work with a fast-growing startup company. He just had to find the right one for him. To aid in his search, he starting writing stories on Charlotte Area starts for Start Charlotte (now Charlotte Inno), for which he has authored sixty articles. David’s involvement in the start-up scene through Start Charlotte, and his passion about using technology to turn innovative ideas into sellable products and connecting like-minded people, lead him to PetScreening.com, and in 2018, David joined the company as its COO. PetScreening.com was started by John Bradford in 2016. PetScreening.com is revolutionizing the pet screening process for housing providers and property managers. The platform, supported by a legal review team that reviews all assistance animal accommodation requests (emotional support, companion, service animals, etc.), also empowers apartment owner operators to screen all pets individually much like they would a resident. PetScreening’s first-to-market risk algorithm, measures the housing-related risk for each household pet, including the pet’s owner, and provides the property manager a summarized risk-score (learn more about their FIDO score here). With PetScreeing.com, property managers, landlords and housing providers can better manage renters' pets and assistance animals for free while introducing more pet-related revenue opportunities. During our podcast, we discuss David’s involvement with the Charlotte start-up scene and what went into David’s decision to switch from a stable corporate job to a start-up company. We also discuss PetScreening.com’s process of looking for the “right partners” to raise money in 2019, and what their focus is for the next twenty-four months. David’s career goals, including positively impacting the community, creating jobs, and helping grow the start-up community, are already coming to fruition! Hear about it and more during the podcast. All podcasts are edited by Brian Adams. If you've noticed the quality of the audio improving substantially since the summer of 2018, Brian is the reason. He does an unbelievable job. Any blips or issues now are due to the recording. William Bissett is the owner of and an Investment Advisor Representative of Portus Wealth Advisors, a Registered Investment Adviser. Registration does not imply a certain level of skill or training. Opinions expressed on this program do not necessarily reflect those of Portus Wealth Advisors. The topics discussed and opinions given are not intended to address the specific needs of any listener.  Portus Wealth Advisors does not offer legal or tax advice, listeners are encouraged to discuss their financial needs with the appropriate professional regarding your individual circumstance.  Investments described herein may be speculative and may involve a substantial risk of loss. Interests may be offered only to persons who qualify as accredited investors under applicable state and federal regulation or an eligible employee of the management company. There generally is no public market for the Interests. Prospective investors should particularly note that many factors affect performance, including changes in market conditions and interest rates, and other economic, political or financial developments. Past performance is not, and should not be construed as, indicative of future results.

Today our guests are Evan Rozantes and Chris Heivly.   By the end of the podcast, you will clearly understand their passion and the importance of building a strong innovation ecosystem in the Charlotte and Raleigh areas. Chris Heivly began his career in DC, then Lancaster, PA then Chicago and moved to the Raleigh/Durham area in 2005. Chris is an entrepreneur (MapQuest Co-Founder), early-stage investor and now serial startup community builder. He’s spent time building up the ecosystem in Raleigh/Durham as well as other cities and joined up with Techstars in 2017 to continue that mission on a global basis. In that role, he is an Entrepreneur in Residence as well as a VP of Innovation. His passion is to help other communities grow their start-up scene, not just in North Carolina but around the World. Evan Charles Rozantes started his career in Boston working in Private Equity at Bain Capital prior to moving to DC to work in private equity and distressed lending at Capital Source Finance. In 2006 he got the entrepreneur “bug” and started a promotional products company which he successfully exited. Thereafter he went full steam into entrepreneurship without a net, co-founding a pediatric health care company in Boston. A lifetime learner himself, in 2012 he co-founded Launch Academy – one of the first coding schools in the world.  Evan relocated to the Davidson area in 2018 with his family where he subsequently met Chris in his effort to bring a TechStars program to Charlotte. Chris has been using the principles laid out by Brad Feld, Co-Founder of Techstars, in his book, “Start-Up Communities” to build startup ecosystems. Chris is now working with Brad on a sequel to the book, hopefully to be published by the end of this year. Together, Chris and Evan are working to bring those three principles to Charlotte. As you’ll hear Evan mention several times during the hour, the goal is to bring an entrepreneurial mindset of experimenting often and failing fast to Charlotte and help further ignite the many excellent things members of the community are already doing. During the Podcast, we also discuss what it takes to create an innovative ecosystem, to create collaborative programs that work within communities, and what it takes to be a good entrepreneur.  We discuss the commonalities that exist between Charlotte and Raleigh and how both communities can work together to build a strong ecosystem. Chris and Evan discuss the importance of community participation in building an environment where people will succeed. We hope you enjoy this podcast!   William Bissett is the owner of and an Investment Advisor Representative of Portus Wealth Advisors, a Registered Investment Adviser. Registration does not imply a certain level of skill or training. Opinions expressed on this program do not necessarily reflect those of Portus Wealth Advisors. The topics discussed and opinions given are not intended to address the specific needs of any listener.  Portus Wealth Advisors does not offer legal or tax advice, listeners are encouraged to discuss their financial needs with the appropriate professional regarding your individual circumstance.  Investments described herein may be speculative and may involve a substantial risk of loss. Interests may be offered only to persons who qualify as accredited investors under applicable state and federal regulation or an eligible employee of the management company. There generally is no public market for the Interests. Prospective investors should particularly note that many factors affect performance, including changes in market conditions and interest rates, and other economic, political or financial developments. Past performance is not, and should not be construed as, indicative of future results.

Today we welcome Will McGuire and Mark Easley to the Podcast.  Will and Mark are building CrowdfundNC – an investment crowdfunding ecosystem in North Carolina.  North Carolina is one of 38 states who have enacted legislation allowing for anyone to become an angel investor. Will McGuire has been an investment crowdfunding investor and advisor since 2016.  Mark Easley has been an active advocate, advisor, and investor in the investment crowdfunding space since 2012. Mark was the leader of the NC PACES Act Team which was recently honored with the 2017 WRAL Techwire Editor’s Choice Award for their work in getting the NC PACES investment crowdfunding law passed.  Will was introduced to Mark by Lewis Sheats knowing they were both interested in helping grow the NC Investment Crowdfunding space.  Over the last year or more, the two of them have been building relationships and talking with startups and local businesses aiming to raise capital to grow their companies while providing returns for investors who support them. In today’s podcast, we talk with Mark and Will about their backgrounds and how they came to be investors, how CrowdfundNC helps companies become investible and what it’s like for a company who wants to crowdfund using CrowdfundNC. As part of this, we realize there are really two ways to invest through their platform.  One is for non-accredited investors and the other is for accredited investors.  I was surprised to learn the platform and business model supported both but learned it’s a perfect combination. I was also surprised to learn their view on traditional angel funds and groups.  Listen to the podcast to learn where they believe these traditional sources of capital will be in 10 years plus lots of other great details on investment crowdfunding. Enjoy! William Bissett is the owner of and an Investment Advisor Representative of Portus Wealth Advisors, a Registered Investment Adviser. Registration does not imply a certain level of skill or training. Opinions expressed on this program do not necessarily reflect those of Portus Wealth Advisors. The topics discussed and opinions given are not intended to address the specific needs of any listener.  Portus Wealth Advisors does not offer legal or tax advice, listeners are encouraged to discuss their financial needs with the appropriate professional regarding your individual circumstance.  Investments described herein may be speculative and may involve a substantial risk of loss. Interests may be offered only to persons who qualify as accredited investors under the Securities Act, and a Qualified Purchaser as defined in Section 2(a)(51)(A) under the Company Act or an eligible employee of the management company. There generally is no public market for the Interests. Prospective investors should particularly note that many factors affect performance, including changes in market conditions and interest rates, and other economic, political or financial developments. Past performance is not, and should not be construed as, indicative of future results.

Tyson Baber went to college at the University of North Carolina.  Early in his career he worked for IBM as an M&A Business Development Executive.  In 2014, he relocated to Toronto and became a Partner at Georgian Partners. Georgian Partners is a growth-stage fund focused on companies who provide unique business value through machine learning and artificial intelligence applied to unique data. Tyson loves helping companies navigate through the growth stage and making them more valuable. In today’s podcast, we talk about GDPR and how it will be enforced in the US.  Tyson discusses the importance of building trust with his clients.  We also discuss how start-ups can best compete with the “giants” in AI. We discuss the “Uber effect”, and what drives business valuations in different parts of the US.  Georgian Partners looks for companies outside of the Tech Industries.  They look for the “Aces in the deck”, which they found here in Charlotte with Stratifyd and PrecisionLender. You won’t want to miss this podcast!   William Bissett is the owner of and an Investment Advisor Representative of Portus Wealth Advisors, a Registered Investment Adviser. Registration does not imply a certain level of skill or training. Opinions expressed on this program do not necessarily reflect those of Portus Wealth Advisors. The topics discussed and opinions given are not intended to address the specific needs of any listener.  Portus Wealth Advisors does not offer legal or tax advice, listeners are encouraged to discuss their financial needs with the appropriate professional regarding your individual circumstance.  Investments described herein may be speculative and may involve a substantial risk of loss. Interests may be offered only to persons who qualify as accredited investors under the Securities Act, and a Qualified Purchaser as defined in Section 2(a)(51)(A) under the Company Act or an eligible employee of the management company. There generally is no public market for the Interests. Prospective investors should particularly note that many factors affect performance, including changes in market conditions and interest rates, and other economic, political or financial developments. Past performance is not, and should not be construed as, indicative of future results.