NYA FOUNDER SPOTLIGHT ‒ STEPHEN KINES, GOLDILOCK COO & CO-FOUNDER
Stephen Kines is the Chief Operating Officer and Co-Founder of Goldilock – a revolutionary cybersecurity company. Stephen is an international corporate lawyer and former military officer. Stephen discusses the importance of investors aligning with Goldilock's geopolitical focus, New York Angels' thorough due diligence process, and why a personal relationship with angel investors is important.
How did you first meet New York Angels?
Our initial investor Peter Green is a good friend of my co-founder, Tony Hasek. Peter also knew Tom Hirschfeld – they’re actually cousins. When Peter introduced Goldilock to Tom, Tom was quite interested in the potential of Goldilock and invested in 2022. Tony flew in last year to meet with New York Angels and talk to them about our fundraising round. On the back of that successful fundraising, we’ve now had a great relationship with Tom for the past year as the Board representative for the New York Angels.
What were you looking for in investors when you were fundraising, and why did you choose to work with New York Angels?
We’re somewhat unusual as a deep tech and dual-use (corporate and government) company with a strong geopolitical focus. It’s not just a technology, but one that requires commitment from those with similar geopolitical aims.
For example, none of our parts can come from China or Russia because we deliver in the defense sector. This means we have a long supply chain. Goldilock is fundamentally a hardware company; we build a device that allows you to physically and remotely disconnect any network or network asset anywhere in the world without using the internet. Many VCs shy away from hardware, but New York Angels were willing to understand the technology and align with our focus.
This morning, I was on a call with the Ukrainian Government to help use our technology in their struggle with the Russians. While it’s not an immediate financial gain, it’s an important part of our overall mission. We found alignment with investors who shared our geopolitical stance and commitment to deep tech and dual-use, which is essential for us.
What was the process like for you when you were fundraising?
New York Angels needed us to prove two key aspects of our technology: 1) that it does not exist anywhere else in the world, and 2) our value proposition for customers. Proving something doesn’t exist is a challenge, but we managed to get Cisco to verify this fact, and we were able to get their former Chief Information Security Officer to have a call with New York Angels. We also worked with a large water utility to validate the customer perspective, particularly in our focus on critical national infrastructure. These two aspects provided a level of discipline to the process, preparing us well for our upcoming Series A.
What have you enjoyed most about working with New York Angels?
New York Angels members have been very enthusiastic about our successes. We give quarterly investor updates and always get responses showing their support. NYA has helped us make connections, which is crucial for a startup dealing with critical national infrastructure and defense security. Warm introductions are essential, and having investors who can provide these connections has been very beneficial.
What advice would you give other founders who are looking to fundraise?
Be discerning in who your investors might be. Focus on in-depth connections rather than spreading yourself too thin. At the beginning, we used third-party agents, but no investor wants to hear from anyone but the founders. It’s about finding the right match and dedicating your time to the most promising leads. If there’s no alignment with potential investors, it’s better to stop and move on rather than waste time.
What advice would you give other early-stage investors who are looking to invest in companies?
If you’re interested in deep tech and dual-use, you need to understand that it’s a long process with risks and delayed (though sticky) revenues. Be honest about your risk appetite and the time frame you’re willing to commit.
What advice would you give to founders to build a successful relationship with their investors?
We understand that we are stewards of our investors’ money and take that responsibility seriously. Having a personal relationship with angel investors makes the journey together more meaningful. We are grateful for their faith in us and aim to ensure they are happy with their investment.
What has driven Goldilock's success?
My partner Tony and I have a strong alignment and respect each other’s skill sets. We’re also both driven by a passion to protect critical national infrastructure from threats. This drive, combined with understanding our customers’ pain points and learning from best practices in the industry, has been key to our success.
