DAN PITKOWSKY ‒ NYA MEMBER SPOTLIGHT
Since joining NYA in 2019, Dan Piktowsky has been an active member leading and co-leading deals. Dan is a proven business improvement executive with over 30 years in Corporate America, as a consultant and line manager with P&L experience. His corporate experiences include small and large companies across a variety of industries, predominantly in the Medical Device industry and most recently in Dental and 3D Printing. As an angel investor, Dan also leverages his prior experiences as an independent business co-owner and operator to coach founders through operational transformation to improve financial performance.
How did you meet New York Angels? Why did you choose NYA?
I was first invited to a NYA Screening in 2015, but shortly after, I received an opportunity to go work for a company that required my focus and temporarily derailed my angel investing plans. After we sold the business in mid-2019, I reengaged with NYA and joined in December 2019. When I officially committed to joining NYA, I had that same feeling that I had several years prior – I was excited to join a group of investors who had expertise across a broad range of industries and a genuine interest in mentoring other entrepreneurs to grow their businesses.
What has been your most memorable experience as a New York Angel?
In my early days as a NYA member, I was very impressed with a company that presented at Screening. Their technology transformed the physical therapy industry into an in-home service. I had recently gone through physical therapy, so I personally thought the solution was very clever. Consequently, I joined Discovery with the other 7-9 NYA members potentially interested in investing…this may have been my first Discovery. As we dug in deeper, the members at the meeting who had expertise in this industry found that the company’s technology was nothing special at all. The company did not make it through to Due Diligence. This very powerful experience opened my eyes to the benefit of investing in partnership with NYA members. Since then, I have continued to build relationships with a variety of members to leverage the power of the full group of angels.
What do you look for when you are investing in a company?
I primarily focus on three things: the entrepreneur, the market, and the exit plan. The entrepreneur themself and their passion for the business are probably the most important elements. I also want to know the intimacies of the market, especially the financials. Finally, as an angel investor, there must be a potential exit strategy.
What do founders like most about working with you?
Founders appreciate the mentorship from me and other NYA members because we have been through a wide variety of experiences. Many entrepreneurs are less experienced, and they could easily step into a landmine or run down a rabbit hole burning a lot of time, money, and effort. By leveraging New York Angels, they can really benefit from our collective expertise to minimize any problems or issues they have forward going. At the end of the day, it is the entrepreneur’s business, so they make the final decisions, but by staying open and listening, the entrepreneur can pivot, if needed, and focus on growing the business vs. fighting fires.
What differentiates companies that you see at Screening versus those who make it through Investment?
Pitches at Screening are very short, so it’s much easier to make a good pitch and put your best foot forward. After Screening, investors start to dig in with questions like: Does the founder really know their numbers? Do they know the market? How big is the market? Founders often present the usual hockey curve in their Screening deck, but have they clearly defined the total addressable market? Also, founders are excited to be at Screening, and they should be, but they need to have a little bit of humbleness and be somewhat grounded. Furthermore, once a founder makes it to Due Diligence, they have to have their eyes open and be listening to feedback. The founders who come into Due Diligence thinking their product is the best thing since sliced bread and are not open to feedback are the ones who typically do not make it through the process.
What advice would you give founders who are starting to fundraise?
Founders need to identify when the best time is to fundraise for their business. Do your homework. Are you actually ready to raise? Important factors include: the balance of value, the amount needed to raise, and where the company is in the business. If you find that you are not quite ready to fundraise, do not be afraid to reach out. There are many angels, like me, who really enjoy mentoring and coaching entrepreneurs prior to fundraising, sometimes over a few months or even up to one year.
When you look at your past investments, what do you think is most critical for founders to be able to deliver a successful exit?
A business can have a strong plan, but without strong execution a company will not exit. While founders can and will pivot from their original plans, it is important to stay in tune with executing the business by focusing on the market. The founder must actively manage their numbers and grow the topline revenue. In addition to execution, confidence also helps build support to deliver an exit. If you have people rallying behind your success, it will open more doors that will potentially lead you down the path of a successful exit.
What advice would you give to newer NYA investors?
Once you have been through 1-2 Discovery sessions, do not hesitate to jump in and co-lead. When I first joined NYA, I was a bit hesitant to engage, as the group initially can seem a little intimidating. But I learned very early on how being more involved is beneficial not only to the broader NYA group, but to me personally as well. I am very thankful that another member asked me to co-lead a deal despite my hesitancy in my early NYA days. I learned a lot as I ended up being thrown right into the process, almost as if I was leading the deal. It was a lot of fun, and the rest of the more experienced members also helped in the process, e.g., putting together the agenda and circulating feedback. It was much easier than I had expected because of the support of the entire NYA group.
