Nimble companies can survive and thrive during the COVID-19 pandemic
Lauren Flanagan, Managing Partner at BELLE Capital USA, board member for and alumna of Springboard Enterprises, and partner at BiteSizeSolutions, shares examples from her portfolio of market opportunities and tactics for early stage companies to extend runway
During the global swine flu pandemic, big Pharma, flu test makers, diagnostic test labs, telemedicine and biotech companies prospered. This will happen again. And with lockdowns and quarantines in place globally, there are more opportunities for companies to gain market share with solutions that improve healthcare systems and quality of life, and by making it easier to collaborate and work from home. Best practices are to stay focused on cash-flow runway, raise more capital than you think you need, and I generally counsel our portfolio companies to get to breakeven as quickly as possible in order to increase their options. Here are some examples from my BELLE Capital USA and Phenomenelle portfolios:
Vital Vio, Colleen Costello CEO, makes continuous antimicrobial lights that kill most germs. While their patented, antimicrobial lights and embedded systems don’t have a specific claim for COVID-19, Vital Vio is positioned for rapid growth as companies and consumers become increasingly conscious of the need to improve cleaning of surfaces to kill germs and ward off SuperBugs. Vital Vio is launching digital campaigns to increase awareness of their technology and its impact on co-infections, you can read more about this wake-up call in the war on germs here. At CES 2020 and on CNBC recently, Delta’s CEO, Ed Bastian, said Delta is using Vital Vio’s antimicrobial technology to help protect a first aircraft. Vital Vio recently closed a first tranche of Series A funding, which included major corporate LPs of Engage Ventures. Vital Vio services customers in healthcare, food processing, pharmaceutical, industrial/commercial and has a partnership model for consumer and residential products with over 30+ products already on the market. Two of their residential products can be found with Ellumi and Broan-NuTone to address simpler challenges such as reducing the build-up of shower mold and mildew. You’ll soon find Vital Vio tech inside vents, vacuum cleaners, elevator buttons, refrigerators, beverage/food prep systems and device cleaners.
Digsite, led by Springboard alumna CEO Monika Wingate, has developed a digital platform for qualitative research, brand insights and focus groups. The Digsite platform enables teams to recruit and launch a Digsite Sprint community in as little as 24 hours to answer consumer questions, capture photos and videos of experiences, and to iterate on ideas or products under development. Used by a wide range of consumer products and big brand companies, such as Sub-Zero, Waymo, American Family Insurance and Harry’s, Digsite is seeing an uptick in their online research communities as companies shutdown travel for focus groups and events. Digsite plans to increase awareness with webinars and enhanced video offerings. In light of mandated social distancing, brands need to reassess their messaging, backed by video-based qualitative research.
To help protect its employees and community, Digsite moved all team members to telework. While Digsite achieved breakeven operations last year, to further extend its cash runway, Digsite is increasing its lines of credit well in advance of need. More about Digsite’s video capabilities can be found here.
HarQen, a 2011 Springboard portfolio company led by Exec Chair, Stuart Olsten, has developed a digital platform for On-Demand Interviewing using asynchronous voice, SMS, video and multi-tenant (“Brady Bunch”) live video interviewing. HarQen’s comprehensive platform makes it possible to interview anyone, anytime and nearly anywhere. HarQen’s digital platform can schedule, transcribe and translate interviews, analyze resumes, and can index enthusiasm, personality, outcome, engagement and predict retention. Customers include American Airlines, AMN Healthcare, Sonora Quest, Lehigh Valley Health Network, Randstadt, Cielo, Staffmark, Adecco and Yoh. HarQen is promoting the advantages of their platform during these trying times through digital campaigns and email blasts such as this one.
Nopsec, led by Springboard alumna CEO Lisa Xu, has developed an award winning, cyber security platform for Vulnerability Risk Management (VRM) that provides prioritization, threat prediction and automated remediation. With more enterprises and government agencies asking employees to work remotely, organizations face increased threats and attack surfaces. NopSec Unified VRM platform provides executive management teams global visibility of their threat exposures, and reduces time to remediation of vulnerabilities from months to days. Many enterprise customers including New York City, Department of Education, Suffolk County New York, and many banks, financial institutions and schools are leveraging NopSec platform to protect business operations and reduce cyber risks while enabling their remote workforces.
Finomial, led by Springboard alumna Meredith Moss, CEO, With over $750 billion in alternative assets serviced on its online software platform, Finomial automates client on-boarding, comprehensive due diligence, and global regulatory reporting in a rapidly changing compliance environment — all while delivering a digital client experience. Finomial is transforming the interactions between alternative asset managers and their investors, minimizing the friction so GPs and LPs can focus on what matters. Key customers include USBancorp and BNP Paribas. New strategic customer Clearstream, a subsidiary of the Deutsche Börse Group, will add $2.5 trillion in assets to the Finomial platform. Anticipating volatility in global capital markets, Finomial has opened a capital raise for strategic and Fintech investors to enable growth.
FemTech device manufacturer, Joylux, Colette Courtion, CEO, makes products that enhance pelvic wellness, and has a device in development to address stress incontinence. With more couples homebound and no live sports on TV, sexual wellness and self-care may receive greater awareness — many are predicting a baby boom, the “Corona generation.” Joylux moved swiftly to cut costs and restructure compensation, decreasing salaries and increasing performance-based compensation, and restructuring sales channels while opening up a small round to Joylux investors to get ahead of the expected tightening of capital markets.
Cloud-based collaboration, hardware and software developer, TouchJet, Helen Thomas, CEO, empowers individuals and groups to meet and collaborate using their patented technology that turns TVs, walls and tables into interactive communication surfaces. TouchJet recently acquired gesturing technology that could have application well beyond meetings and collaborations — could be used in opening doors, cabinets and drawers without touch to help address the advent of SuperBugs and future pandemics that are brewing in wildlife and laboratories.
AI-enhanced digital platform for new majority small business owners, Alice, Carolyn Rodz, CEO, has developed a one-stop resource to help find funding, customer opportunities and business experts to help grow their businesses. Alice’s partners such as Salesforce, Mastercard, Silicon Valley Bank, Pepsico, EBay Foundation and Bumble, provide funding, mentorship, discounts and customer opportunities to Alice’s new majority small business owners. Alice recently closed a round of funding led by Silicon Valley Bank and super angels such as Jean Case and Serena Williams. Alice is compiling a COVID-19 resource to help its business owners survive and thrive during the pandemic and expected recession.
Lauren Flanagan is a lifelong entrepreneur turned angel investor. She has invested in more than 40 companies, and manages two angel funds, BELLE Capital USA and Phenomenelle Angels Fund, comprised of women investors investing in women-led tech companies. She advises investors on best practices for angel investing, and early stage companies on strategy, growth, capital-raising, and exit options. Lauren’s mantra is, “women are the solution to our capital access problem.”
