EDWARD LEVINE ‒ NYA MEMBER SPOTLIGHT
Ed Levine is a dedicated and active NYA member, who enjoys mentoring and developing young companies. With 30 years of experience managing and owning a small food processing business, Ed clearly understands the perspectives of both founders and investors.
How did you meet New York Angels? Why did you choose NYA?
I spent the majority of my business life in a small food processing company. My business partners and I sold the business in late 2014. At the time, I was exploring what to do next, and I had never heard of angel investing. A friend connected me with a NYA member (Gregg Young) and over breakfast, we talked. I went to a NYA meeting, and I was very excited about not just the business potential, but also the opportunity to connect with so many smart, accomplished people.
What has been your most memorable experience as a New York Angel?
I’ve been spearheading a partnership with Tandem Launch. Tandem Launch is a unique startup foundry with a tremendous portfolio and track-record. I think relationships like Tandem Launch are far more beneficial than when founders find us randomly (e.g. Google searches). These relationships require nurturing and take time. I am confident that these types of partnerships are symbiotic to all parties involved and will bear fruit over time.
Beyond the New York Angels, I am involved in several mentoring situations (along with David Hemenway and Gregg Young). For example, at a school in the Bronx, we started the Business Savvy Club where we discuss topics such as investing, budgeting, etc.
What do you look for when you are investing in a company?
It may seem obvious, but we are looking for businesses that will hopefully be successful and investor friendly. At the seed stage, the team is just as important as the product or service. I’m looking for experience in the team and a product or a service that has the potential to scale and be desirable to an acquirer. There are companies that stay relatively small, a lifestyle business in the vernacular. There’s nothing wrong with a lifestyle business, I was in a lifestyle business for thirty years, and trust me, there are a lot of good reasons to stay that way, but it’s not good for the investor.
What do founders like most about working with you?
I think it is a misnomer to assume that founders want to "work" with investors. We offer our experience and connections and hope that we can be an asset to the company as it grows. However, it is up to the founder and his/her team to take us up on the offer. The bottom line is we are a source of capital to companies when other sources (e.g. banks, VCs) are not receptive.
What's the biggest difference between companies that you see at Screening and those who make it through to Due Diligence?
First off, it’s more important to compare the difference between companies at Screening and those who successfully secure investment. I'm one of the members of the pre-screening committee, so I see tons of companies. I’m always looking for companies that may be of interest to the membership, and I try to put my own biases aside. Our membership is quite varied and consequently, the interest in companies runs the gamut. One of the beauties of the New York Angels is the diversity of investment.
What advice would you give founders who are starting to fundraise?
I do not envy founders who must go through the fundraising process - often several times and with a number of angel groups. No wonder they are not terribly receptive after the check clears!
All kidding aside, I think some founders come in with an attitude that they don't necessarily have to be all that transparent and forthcoming. We're being asked to invest at a time when the business is most likely to fail, so our inquisitiveness is justified. The bottom line is that founders should be patient with us, and hopefully they will be rewarded with a large investment.
When you look at your past investments, what do you think is most critical for founders to be able to deliver a successful exit?
Honestly, I haven't been making angel investments long enough to give an accurate answer. I will say that in my experience, it appears to be easier for a company to make a pivot in product or service than to reform the founder and team. That's why I try to pay very close attention to how the founder and team relate to us, honestly and clearly answer our questions, and paint a vision for the future.
