2020 - new orleans startup fund€¦ · these outstanding results speak directly to the startup...

2020IMPACTREPORT

P R E S E N T E D B Y

The New Orleans Startup Fund enjoyed another year of unprecedented success in 2019. You can see the results all around us in the growing ecosystem of new, thriving companies that are positively impacting our region. You can also measure our success by that of our portfolio companies, which have:

• Raised $118M in venture capital • Created 1,518 jobs • Generated $31.7M in revenue in 2019 alone

These outstanding results speak directly to the Startup Fund’s vision of creating jobs and delivering a substantial and quantifiable positive economic impact in the 10-parish Greater New Orleans area.

As a non-profit evergreen fund, we reinvest all of the Startup Fund’s returns to expand the number of successful, growing businesses in our region. In fact, with capital generated through exits, last year we added several new startups to our portfolio, including Block Lawncare, Gilded Finance, SampleChain, and TrayAway.

In addition, through the PowerMoves.NOLA initiative last year, we presented a series of workshops that engaged over 125 entrepreneurs of color to learn from subject matter experts how to maximize business opportunities in designated Opportunity Zones.

Nothing speaks to the power of the Startup Fund in helping early-stage startups get venture ready like the fact that for every $1 invested by the Startup Fund, our companies on average have been able to raise $44 in follow-on capital.

This speaks to the vast potential in our region, and we look forward to helping more and more startups launch and scale in the years to come.

Investing in promising companies. Growing the regional economy.

Matt WisdomChair of the Board of Directors

New Orleans Startup Fund

Leslie JacobsFounder


Jimmy Roussel CEO


N E W O R L E A N S S T A R T U P F U N D 2 0 2 0 I M P A C T R E P O R T | N E W O R L E A N S S T A R T U P F U N D . C O M

A Strategy for GrowthPreparing Venture-Ready Companies


Startup Lifecycle

The Startup Fund helps New Orleans entrepreneurs bridge the difficult gap between the ideation stage and the growth stage of their business.

FUNDS DEPLOYED OVER TIME

2012

2013

2014

2015

2016

2017

2018

2019

The Startup Fund’s mission is to create jobs and economic prosperity for Greater New Orleans by providing seed capital and business assistance to early-stage firms that demonstrate significant growth potential.

Angel Round

8 COMPANIES

1 COMPANY

Series A Round

Series C Round

Series B Round

$2.6M Startup Fund Seed Round

47 COMPANIES

$118MRaised to Date

17 COMPANIES

IDEATION

EARLY STAGE

GROWTH STAGE

ANGEL FUNDINGNO/LA Angel Network

Lagniappe AngelsRiverbend Group

BANKS / FINANCIALINSTITUTIONS

VC / AIF / PE

SEED FUNDINGStartup Fund

Friends & FamilyINCUBATORSPropeller

The Idea VillageLaunchpad

New Orleans BioInnovation Center

EXIT

The typical lifecycle of a startup includes an 8-10 year period where early stage investments mature for an exit. The Startup Fund is 2-5 years into its investments with the majority of its companies, which are growing, on average, at a rapid rate.

Our companies are out-performing the national average, which says less than half, 48%, manage to raise a second round of funding – and that every round sees fewer companies advance toward new infusions of capital.* We’re bucking that trend, with 60% of Startup Fund companies (including factoring in the brand new ones) going on to raise additional rounds of funding.

(*Source: CB Insights 2018)

2 COMPANIES

SUSTAINABLE ECONOMIC

DEVELOPMENT

Evergreen Fund

Startups Grow and contribute to

the economy

Invests inStartupsROI

GROWING VENTURE-READY COMPANIES

X44F O L LOW- O N F U N D I N G

1,518 J O B S C R E AT E D

$31.7M 2 0 1 9 R E V E N U E

A Strategy for GrowthPreparing Venture-Ready Companies

The Startup Fund has invested $2.6 million in companies that have gone on to raise more than $115 million in follow-on funding. That’s a multiplier of 44, and it’s a primary marker of the Fund’s success.

We’re helping companies launch and scale - and do it right here in New Orleans.

Of the 47 companies the Fund invested in, 36 remain active in our portfolio. We’ve made 3 exits and 1 partial exit, and only 11 companies have shut down.


Many of our companies are already profitable, generating

more than $31.7M in revenue in 2019

The Startup Fund’s investments in New Orleans companies, while still early on, are already yielding compelling returns and out-performing national averages. We’re raising another round to invest in more startups and generate returns to make the fund sustainable.

1,153 part-time jobs

365full time jobs

AxoSim produces “Nerve on a Chip” technology

Be Well Nutrition makes the healthy protein drink Iconic

BioAesthetics provides Nipple Areola Complexes for breast reconstruction surgeries

Bioceptive is the developer of an intrauterine device inserter

Block Lawncare provides on-demand lawn care through a mobile app

Brown Girl Media is a new media company for women of color

Culture Connect builds mobile apps for museums

Cyber Reef Solutions provides VPN’s for IoT devices

Don’t Get Mad Get Paidhelps mothers collect child support arrears

Dreamleague operates live digital-gaming competitions

Ecosweet makes zero calorie NON-GMO natural sweeteners

Freshcane Inc makes Bhoomi cane water

Fresh Mat provides a service to clean yoga mats

Gilded is an accounting platform for cryptocurrency

Golden Leaf Energy makes lubricants for coil tubing units in drilling operations

Instafunds helps provide financial services to the underbanked

Juicebox coaches provide sex and relationship advice online

Kiku helps parents manage kids’ carpools for sports events

Kickboard is a solution that tracks students’ performances

Levelset makes notices, mechanics liens, & lien waivers easy

Lifecity makes social and environmental impact profitable for business

Mobilequbes provides portable cell phone battery packs via branded kiosks

Mymee uses data and analytics to overcome autoimmune issues via diet and exercise

Pet Krewe, LLC is a pet costume company

Quarrio is an artificial intelligence platform for Salesforce

Resilia helps nonprofit organizations manage compliance

SampleChain provides insight on the quality and suitability of survey respondents

Scandy is a mobile 3D scanning solution for smartphones

Servato manages battery efficiencies in cell towers and data centers

Smart Coos helps students learn a second language

Smartpak makes a six pack carrier with an integrated Koozie™

STEMNOLA is growing future innovators, creators, and entrepreneurs

Stop & Block provides access to single serve sunscreen

Tray Away is making room service better through rapid removal of room service trays

Vizzit is an app for self-guided experiences

Welcome To Collegehelps universities connect with prospective students

Portfolio Of Investments


Essential Supports for Early Stage EntrepreneursIn addition to seed capital, the Startup Fund provides expert advice, professional guidance, and invaluable netowork connections that entrepreneurs, and their com-panies, need to succeed here in New Orleans.

“The financial support and mentorship from NOSF has been key to our growth and success as a company.”

Justin Bayer Founder & CEO Welcome To College

“The early investments from the Startup Fund helped us build our initial technology platform and get through low cashflow periods, notably, the second round investment helped us turn a corner where we saw 10x growth the follow-ing year!”

Samantha DiamondCEO Culture Connect

“The Startup Fund was not only one of the first capital resources I attained for my startup concept, but they were also critical in making key introductions for me.”

Sevetri M. Wilson CEO Resilia (formerly ExemptMeNow)

“The Startup Fund gave us access to initial capital as well as access to other parts of the New Orleans business ecosystem, which has been very helpful and powerful.”

Vignesh Krishnan Founder & CEO SampleChain

“The Startup Fund fills a critical gap in the investor landscape here, and without them I am sure a number of successful local companies would not exist."

Sean McCloskeyCEO Stop & Block

“In addition to hiring more women in the workforce, we’ve been able to use the funds to help save the lives of hundreds of animals.”

Allison AlbertFounder & CEO Pet Krewe

“The Startup Fund has been an invaluable partner for our expansion to New Orleans and the move has accelerated the critical development, testing, and validation of our business model.”

Arthur Bart-Williams Co-Founder & CEOVizzit

“The Startup Fund has been extremely helpful in making introductions on my behalf, from potential collaborators to resources and people that would have been inac-cessible to me without their assistance.”

Lynne McDaniel FounderBrown Girl Media, LLC and Anew Network


CULTIVATING AN

INCLUSIVE ECOSYSTEM

A Strategy For Inclusion And Social Impact

While female founders raised only 2.8% of total VC funding in 2019, 32% of Startup

Fund companies are woman-owned.woman-owned.

While just some 1% of American venture capital-backed founders are black, 45%

of Startup Fund companies are minority-owned.minority-owned.

The Startup Fund serves as the investment arm for Propeller, a nonprofit incubator that grows and supports entrepreneurs to tackle social and environmental disparities. 43%

INVESTING IN IMPACT


have a social impact

In 2019, the Startup Fund helped entrepreneurs of color navigate Opportunity Zones by providing resources and expertise on how to tap into the new community development program. It included a series of four workshops that, combined, gathered more than 125 entrepreneurs to learn from subject matter experts about the Opportunity Zone legislation, ways to maximize business opportunities in the zones, Opportunity Funds, and tools for understand-ing site selection for businesses within the zones. The effort was part of the Startup Fund’s PowerMoves.NOLA initiative to nurture an inclusive entrepreneurial ecosystem and help minority-owned businesses in the city grow and thrive.

The Startup Fund Not Only Filled A Void, But Created A Whole New Ecosystem

P R O G R A M S

In the post-Katrina years, New Orleans saw a tremendous influx of new residents who came to help rebuild and be a part of the city’s rebirth. Many of these new residents brought with them ideas for an array of startups. But in spite of New Orleans’ many assets (port, biosciences corridor, educational institutions, desirable lifestyle, etc.), there wasn’t an established investor network ready to provide seed capital at this critical time.

The Startup Fund stepped in and filled this need. Moreover, an entirely new and vibrant startup ecosystem has been created here with tangible results for the regional economy. More than 200 high-growth tech companies have launched and are growing their businesses here, and this number is increasing quarter over quarter despite the normal attrition expected with early stage startups. Firms like Levelset have built impressive organizations from scratch here, raising substantial capital and adding hundreds of high paying jobs to the local ecosystem.

To date, the Startup Fund has invested in 47 companies, achieving a leverage ratio of 44 times the capital invested, with diversity and inclusion statistics among the best in the country. Given this success, our board has decided to extend the life of the fund, and our goal is to continue this amazing progress and to make the fund self-sustainable. We look forward to working with you to take the Startup Fund and our entire region to the next level.

What Starts In New Orleans,Stays In New Orleans

POWERMOVESNOLA.COMAn initiative of the Startup Fund made

possible with funding from the W.K. Kellogg Foundation, PowerMoves.NOLA is

positioning New Orleans as a hub for minority entrepreneurship through its support of

local businesses. Since its inception in 2014, the program has helped more than 200

entrepreneurs of color, providing strategic guidance and connecting them with investors,

advisors, and peers.

Established in 2010, the nonprofit evergreen fund accelerates the growth

of early-stage, innovative businesses into venture-ready companies.

THE FUND

For more than 300 years New Orleans has given the country and the world amazing music, culture, food and an unmatched passion for life. The New Orleans Startup Fund is based on the belief that such fertile ground can support amazing new businesses as well—thereby keeping our talent right here at home while ensuring an economy as vibrant as our character.

Leslie Jacobs, Founder, New Orleans Startup Fund

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2020 - new orleans startup fund€¦ · these outstanding results speak directly to the startup...

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