May 5, 2016

Investors with the Right Stuff

Oh, Oh big ol’ jet airliner
Don’t carry me too far away
Oh, Oh big ol’ jet airliner
Cause it’s here that I’ve got to stay

“Jet Airliner” by Steve Miller Band

Have you done your research to know which investors have the right stuff for your company? Here’s a fresh example of the importance of doing your research and not thinking all money is equal. Last week, Boeing announced that General Nano (now “Veelo”) was one of 12 honored with a Supplier of the Year award. That’s 12 out of 13,000 suppliers! Congratulations to Joe Sprengard and his team. This is yet another great example of the innovation taking place here in #startupcincy.

And from the Cincinnati Business Courier: “Coinciding with the Boeing announcement, General Nano is rebranding its product line as Veelo, riffing off of “velocity.””

I had to write a post about the news since they used the word “riff” in the story 🙂

I caught up with Joe and his team this week to talk about their plans for growth and funding. As you might imagine, the phone has been ringing off the hook. Pretty amazing stuff for this small, scrappy company. The team is at a critical juncture. Luckily, they have some terrific angel investors and board members from the industry to help guide them in their decisions. The next decision they make about bringing on new investors is critical.

One of the great things about leading the Syndicate Fund at Cintrifuse is that we have met many great early stage investors, some of which could be very helpful to companies like Veelo.  Coincidentally, a mutual friend introduced us to Carmichael Roberts, who recently left Northbridge to start Material Impact Fund.

Carmichael is super smart and knows the advanced materials space better than anyone I’ve met. We immediately connected him with Joe, and it was clear that this is the type of investor that Veelo needs to attract. I’m not trying to put Carmichael on the spot. He’s in the middle of launching his new fund, so he has his hands full. However, he’s already been very helpful and asked the kind of questions that only someone with direct and relevant experience would know to ask.

I can’t emphasize this enough to entrepreneurs. Do your homework and find the right investors for your company. It’s not simply about which firm can help me make connections, etc. Alignment with your vision and knowledge of your industry will make a world of difference.