GENE CARR ‒ NYA MEMBER SPOTLIGHT
Eugene Carr, founder and CEO of Patron Technology/PatronManager, and co-founder of ALO.ai, is a serial technology entrepreneur who has been a visionary in bringing Internet-based technology solutions to arts and cultural organizations since the early days of the consumer web. Gene joined New York Angels in 2019, and he brings unique perspectives and energy to both founders and our members.
How did you meet New York Angels? Why did you choose NYA?
As a New York-based entrepreneur, I knew about the NY Angels, and I recall being turned down when I attempted to pitch my first startup! Many years later when I was considering joining as an angel investor, I interviewed a few members and was told it's an amazing group of really caring, smart, successful, thoughtful people with shared interests, and a desire to help founders get their companies off the ground. Having experienced raising money for a start-up, helping other entrepreneurs sounded like something I would like to do.
What has been your most memorable experience as a New York Angel?
Over the past few years, I have learned so much about so many industries that I had no idea about. For so many years running my business, I was singularly focused. I found was extremely deep in B2B SaaS Tech but minimally wide in other industries. As part of New York Angels I have learned so much about so many industries, and I think I've become a better analyst (and mentor to) early stage companies based on that experience.
What do you look for when you are investing in a company?
Primarily I'm betting on the entrepreneur, the market size/dynamics and the size/quality/importance of the business problem they are solving. Investing is a bit like helping to put a ship out to sea. I want to make sure the captain of the ship knows where she is headed, and how to sail. I know there are going to be bad seas, and unexpected storms; I'm betting on that captain to navigate. If you ask where exactly they're going to be after they've been at sea for two years, it’s impossible to predict. Often they will need to make mid-course corrections. Mostly, I care that they are still afloat and heading in the right direction!
What do founders like most about working with you?
I coach several founders on an ongoing basis and am on the board of three companies. I believe that these leaders would tell you that getting advice from a founder who has “been there” and who can be supportive and creative -- especially when there’s a fork in the road -- is a real help.
What's the biggest difference between companies that you see at Screening and those who make it through to Due Diligence?
There is a fair amount of due diligence as part of the New York Angels process. This isn’t a group where you have a 15 minute meeting and then a check gets written. The companies that end up getting funded are extremely “buttoned up” which means that their pitch, their financials, their ability to answer questions about their company is solid. And, also very important, is the ability of the founder to present themselves as a passionate leader with some level of humility.
What advice would you give founders who are starting to fundraise?
Make sure you know your investor audience. Not all angels or angel groups are alike. Some look for early stage companies that simply have a great idea and a team. However, I’ve observed at the New York Angels, that the companies that do the best have customers, and some revenue (~$1M ARR), and can make a credible story around product market fit.
As a founder, I raised millions and millions of dollars, and if I had a dollar for every time somebody said to me, "call me when you're further along", I probably could have raised another million! That’s because I didn’t always understand who I was pitching to and what kind of company that investor was actually looking for. So before you pitch, do your homework about the kind of investor(s) you are talking to, and what they are looking for.
When you look at your past investments, what do you think is most critical for founders to be able to deliver a successful exit?
The quality that is essential for the founder (and their leadership team) is to be nimble, creative and able to make changes quickly based on the market, the competition, or new opportunities.
