Upstate Deals and Doings – January 31, 2018

Deals, news and events for the investment community across Upstate New York.

Published online and emailed to members every other week.

Somak Chattopadhyay

Managing Partner, Armory Square Ventures

Somak talks about the "renaissance in entrepreneurship" in Upstate New York and why he invests in New York companies. Hear more. 

Industry news + Deal Highlights

  • Hamilton Lane reports on how the recent tax plan will impact private market investors. The data shows increases in earnings and cash flow for U.S. companies (which make up the majority of private market portfolios). The upside will be seriously curtailed for companies with high leverage - particularly once debt approaches 5x EBITDA - but even there Hamilton Lane sees a net increase of 30-50 basis points on IRR. That expands to 140-170 bp for companies with low leverage. Request the report.
  • Silicon Valley Bank has released their 2018 Startup Outlook Report, showing that tech and healthcare entrepreneurs are mostly optimistic about business conditions going into the new year. But, the political climate could effect change as more than half of the startups surveyed reported having at least one immigrant founder. According to an article published in Fortune, fifty-one percent of U.S. companies valued at over $1B+ were founded by immigrant entrepreneurs, and those companies create an average of roughly 760 jobs per company. Upstate Capital will host an event to discuss how this topic is affecting Upstate New York entrepreneurs next week: Starting Up and Staying Here: Immigrant Entrepreneurship.
  • Fuzehub, a nonprofit that lends manufacturing expertise to small to medium sized companies across the state, is getting ready to accept applications for its latest round of grants, according an article in the Times Union. Under the latest round of funding, $294,791 went to organizations working with various manufacturers including MTI Instruments of Albany. 
  • Launch NY, a Buffalo-based venture funding and development program that promotes startup activity in upstate New York, has invested $110,000 in three Buffalo companies: 3AM Innovations received a $25,000 investment, RepHike received $50,000, SimpleFund received $35,000. The Buffalo News and Buffalo Business First (paywall) reports. 

Community events

  • January 31 - Albany - Rich Honen (Phillips Lytle) at Startup Grind Albany -  30 Yrs. Educating Upstate NY about Venture Cap & Angel Investing - Startup Grind Albany, a fireside chat series featuring successful business leaders; local founders, innovators, educators and investors who share personal stories and lessons learned on the road to building great companies. Register for today's event using promo code: UPCAP

  • March 13 -14 - Stanford, CA - Stanford/NVCA Venture Capital Symposium - Get practical guidance on achieving success as a venture capitalist in a rapidly changing marketplace. Learn to respond effectively to new governance challenges at venture capital firms and at portfolio companies. Explore best practices in fund management and limited partner relationships. Examine cutting-edge issues affecting the entire venture sector, including deal pricing, initial coin offerings, and the emergence of a new breed of late stage investors.
  • March 23 - New York City - The 5th Annual Single Family Office Summit. hosted by the Family Office Club, is back and quickly approaching. We'd like you to join us on Friday, March 23rd for an unparalleled conference experience. Nowhere else can you hear from 30+ family offices on stage, mingle with more than 150+ single family offices in the audience, and build real relationships that result in co-investments, greater deal flow, and meaningful partnerships. Topics include family office on co-investing, risk management, and portfolio management just to name a few. Receive $200 off ticket prices by using this Upstate Capital link to register.

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