My Start-up Portfolio

[Last Updated on Saturday 12/11/2021]
My wife Lisa and I are active “angel” investors and advisers.  We have invested in 19 different companies since 2003, and we have 14 active investments in biotechnology (5), hardware (3), software (5), and space launch (1). Our first two investments were disasters. DreamBox Learning gave us a modest return. And we had nice wins in Azuqua and AppSheet. I have also advised many different start-ups.

Biotechnology

www.BlazeBioscience.com (12/2015) TumorPaint™, for cancer surgery; pursuing FDA approval for pediatric brain cancer first. Blaze discovered a small protein from the venom of the Israeli Death Stalker Scorpion that sticks to cancer cells. They added a molecule that glows green under near-infrared light, and they have a surgical microscope + light source that enables the surgeon (pediatric brain cancer, breast cancer, lung cancer, …) to see the tight margins on large tumor masses AND identify the little metastases that would escape CT PET scans.
04/2020: FDA grants Fast Track designation to BLZ-100.

www.CyrusBio.com (2/2017) started out as a SaaS version of Baker’s Rosetta protein modeling/design software. They have shifted recently to redesigning several FDA-approved drugs. These particular drugs have high immunogenicity, and so cannot be effective/tolerated for very long. Cyrus aims to redesign these existing drugs to maintain their effectiveness while simultaneously vastly reducing their immunogenicity.
12/2021: $18M Series B.
07/2017: $8M Series A.

www.LumenBioscience.com (10/2019) is able to produce complex proteins in Spirulina. Their first aim is a pill that travelers can consume prophylactically with meals to avoid sickness from Campylobacter, C. Diff, E. Coli, and Norovirus. Lumen produces 5 different camelid VHH antibodies in Spirulina, and these either attack these organisms or bind to their poisons, plus lysins to attack the organisms. Spirulina is GRAS by the FDA. And Lumen got lucky: the dried spirulina husks protect these delicate antibodies from stomach acids and enzymes, so they survive into the intestine where they do their work.
09/2020: $16M Series B.

www.ProofDX.com (3/2021) is developing a rapid diagnostic test using CRISPR for the detection of COVID-19.
03/2021: $30M Series B.

www.TwinstrandBio.com (2/2019) has a patented technology that reduces the error rate of PCR + gene sequencing from 1 in 100 base pairs to 1 in 10M base pairs. Many applications, including testing blood for trace amounts of markers for serious diseases.
05/2021: $50M Series B.
11/2020: Foundation Medicine licenses TSB patent families.
01/2020: $16M Series A.

Hardware

www.DirectedMachines.com (10/2018) autonomous electric farm tractor, <$20K, mowing, trimming, grading, and hauling. Computer vision and ML are very important to accurate navigation and safety. See the videos.

www.GlowForge.com (12/2014) makes a cloud software 3D laser cutter.
04/2018: Launch press release.

www.OneTrack.ai (5/2019) improves safety, accuracy, and efficiency of forklifts in large warehouses. Founder/CEO is Northwestern BS CS’17. Lots of computer vision/ML code. Hardware mounts on forklift, two cameras (up/down), cellphone guts, provides real-time tracking (surprisingly rare: a 1M sf warehouse can employ 60-80 forklifts). Integrates with existing Warehouse Management Systems software.

Software

www.AdLightning.com (6/2020) scans publisher websites (NYPost, Slate, etc.) for bad ads and provides bad ad blocking service. “Bad” is slow to load, spammy, and/or malware.

www.FloreoTech.com (2/2021) provides Virtual Reality therapy to kids with autism.

www.Lockstep.io (5/2019) automates email handling for cloud-based ERP accounts receivable/accounts payable systems, verifies company contact/billing information, eventually provides high-quality credit worthiness reports. There are several possible “network effect” over time.
02/2021: $10M Series A.

www.Ondema.com (3/2021) provides custom machine shop scheduling; optimize people, machines, and jobs; either stand-alone, or augmenting existing ERP systems (which have no or poor scheduling abilities); potential to provide more ERP services over time.

getRapL.com (7/2021) is the platform for bite-sized workplace learning. Started in India, it is now expanding into the USA and other countries.
08/2021: $2.2M Seed Round.

Space Launch

www.Stoke-Space.com (9/2020) is a young space start-up in Seattle led by Blue Origin, SpaceX, and RocketDyne alumni.
12/2021: $65M Series A.
02/2021: fully reusable rockets, $9.1M seed funding.

Successful Exits

Our 2013 investment in www.azuqua.com (automating data flows between disparate cloud services) was realized in early 2019, acquired by Okta. Our 2014 investment in www.appsheet.com (put a spreadsheet in the cloud, push a button, get a mobile app) was a big winner in early 2020, acquired by Google.

We founded DreamBox Learning (as SchoolSoft) in 2006, launched K-2 online math lessons in 2009, sold DreamBox (at a loss) to Reed Hasting in 2010, kept a financial interest, and made a follow-on investment in 2013. The Rise Fund acquired DreamBox in 2018. Evergreen Coast Capital acquired DreamBox in 2021, and our tiny stake was cashed out. We achieved an absolute return of 10.5% over those 15+ years.
As of December, 2021, DreamBox Learning serves ~6M students and ~400K teachers in all 50 states, D.C., Australia, Canada, Mexico, U.K., and Puerto Rico.

Advising Start-ups

I was an advisor to Albert.io (2014-2020), SignalSense (2014-2015, acquired by Splunk), and UIEvolution (2002-2005, acquired by Square Enix). I was also a director of non-profit GroundSpring.org (2003-2004, acquired by Network for Good).

I look at 50-80 start-ups in any one year, and though I rarely write a check, I do try to provide frank feedback and guidance.

Early Disasters

TeachFirst (2003-2009) was our first angel investment, and we lost 120% (TeachFirst had to file for Chapter 7 bankruptcy liquidation, and employees sued the board for wages deferred before we invested). Vizrea (2005-2009) was our second angel investment, and we lost 90% (a too-early mobile phone photo sharing application).

Timeline

04/2003: TeachFirst => 04/2009 Chapter 7 Bankruptcy; [lost 120%]
04/2005: Vizrea => 12/2007 Microsoft acquired; [lost 90%]
03/2006: DreamBox Learning => 04/2010 Charter Fund acquired => 07/2018 TPG acquired; 12/2021 Evergreen Coast Capital acquired [10.5% absolute return]
08/2013: Azuqua => 03/2019 Okta acquired; [nice multiple]
05/2014: AppSheet => 01/2020 Google acquired; [nice multiple]
12/2014: GlowForge
12/2015: Blaze Bioscience (+10/2016)
02/2017: Cyrus Biotechnology (+9/2020)
10/2018: Directed Machines (+3/2021)
02/2019: TwinStrand Biosciences
05/2019: OneTrack (+3/2021) [IL/CA]
05/2019: LockStep (+11/2020)
10/2019: Lumen Bioscience
06/2020: Ad Lightning
09/2020: STOKE Space Technologies
02/2021: Floreo [MD]
03/2021: Ondema [CA]
03/2021: Proof Diagnostics [MA/WA]
07/2021: RapL [India + WA]

Author: benslivka

19 start-ups, software, hardware, biotech, space launch, neurodiversity, learning, free markets, food, wine, cycling, walking, Seattle, Microsoft, Northwestern University, Garfield HS, DreamBox Learning, IBM, Amazon.

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