August 2019

Hope you are all having a great summer! Hard to think of Octoberfest when we are still in the heat of summer, but our October 17 Venture Fest event at SUNY New Paltz is only 60 days away. Help us make this the largest HV entrepreneur ecosystem gathering ever held in the Hudson Valley. We will be sending a separate email to all newsletter recipients in a week or so with more details and registration information.

This August newsletter has a biotech theme - highlighting a biotech startup, a biotech incubator, and a law firm that works with many biotech startups.

Please forward this newsletter to others so they can Subscribe and enjoy it as well.

Entrepreneurs

Aspisafe Solutions is a Medical Device startup in the feeding tube space. It aims to bring three products to market. Our flagship product is a nasogastric tube that has a proprietary communicating balloon technology to prevent reflux and thus would be able to prevent pneumonias that are linked to stomach aspiration. We believe by abolishing reflux in certain patient populations, billions of dollars worth of complications will be saved, and patient outcomes will improve.

Aspisafe’s first product, which will launch in Q1 2020, is a feeding tube holder that helps secure nasogastric tubes in place and prevents accidental pull-outs. Aspisafe is currently nearing a design freeze for its flagship product and will be conducting a comprehensive animal study to ensure safety and efficacy. This product will be used in patients who are at an increased risk of aspiration pneumonia, including stroke patients, ventilated patients and patients with a small bowel obstruction. Once the device is FDA cleared, human trials will ensue in order to demonstrate the cost/benefit of the product for selected patient populations.

Through persistent R&D, Aspisafe discovered a better catheter design that can be used for simple feeding tubes and thus plans on introducing a superior simple nasogastric tube that would minimize insertion failure, a complication that occurs in up to 50% of nasogastric tube

Talal Sharaiha, MD, Founder & CEO of Aspisafe is a local doctor and HV entrepreneur in the early stages of working with the HV Startup Fund.

For more information please contact Talal Sharaiha tsharaiha@aspisafesolutions.com

Investors

In keeping with our biotech theme this month, the HV Startup Fund has invested in Repairogen, a Westchester based biotech startup that is developing leading cosmetic ingredients and

products that enhance DNA-repair to improve skin health and appearance. Repairogen recently completed their main clinical study which showed statistically significant improvements in skin appearance (e.g., erythema, wrinkle reduction, luminosity, etc.). Repairogen is currently in the process of raising a Series A venture capital round.

Last month, we highlighted what types of companies are good candidates for funding from the HV Startup Fund. Part II this month highlights the investment process - what are the steps from initially reaching out to HVSF to the point an investment is made.

If you’re a high-growth entrepreneur in the Hudson Valley, the Hudson Valley Startup Fund wants to hear from you. The typical process for considering an investment is as follows:

Pre-Screening

Contact the HV Startup Fund: if you are considering or actively raising external funds, the entrepreneur should reach out to the Fund directly through any Fund member or through info@hvstartupfund.com.
Apply via Gust to the HV Startup Fund
Participate in a pre-screening call with an investor from our Screening Committee where we can get to know each other better and determine if there is a fit, and if so, your readiness for a Screening Call

Screening

Participate in a screening call with the Screening Committee, where you have 15 minutes to present online, followed by 15 minutes of Q&A
Assuming a positive vote from the Screening Committee, you will be offered an opportunity to present at a monthly member meeting
A few HVSF investors will work with you to help you prepare for your presentation to members (“pitch prep”). This is a valuable coaching session that can help you increase the likelihood of a successful pitch to members.

Pitch to Members

At a monthly member meeting, you will have 15 minutes to pitch and 15 minutes for Q&A. Afterwhich, members will discuss and vote to proceed or not.
Assuming a positive vote to proceed, we will begin a 90 day due diligence process. The 90 day period is dependent on your readiness to engage the process without delay. This will entail a series of questions, document requests, and several calls and meetings.

Due Diligence / Deal Finalization

Assuming a positive due diligence process, we will move into deal finalization where legal documents for the investment will be developed, and agreed upon.
Assuming a positive deal finalization process, documents will be signed and an investment check presented.

Post Investment Support

An Advisory Group consisting of interested members will be put together and will remain a vehicle for the entrepreneur to engage the members, to derive ongoing value from your relationship with HVSF.

If you have questions or would like more information about HVSF, please contact info@hvstartupfund.com.

Leaders

BioInc@NYMC is the MidHudson Region’s Innovation Hot Spot and the area’s only incubator for life sciences / BioMed startups. Based on the campus of New York Medical College in Valhalla, BioInc provides turnkey wet labs, dry labs, office space, and coworking desks, along with access to shared equipment, 3000 faculty-scientists, and comprehensive business support services. A 10,000 square foot expansion is underway, making room for 10 to 20 additional startups in late summer/ early fall.

Currently, BioInc is incubating 9 startups, working on medical devices, small molecules targeting various hard to treat cancers, nutraceuticals, and telehealth. The startups range from the earliest stage - one employee still determining whether their science has commercial potential and what direction to go - to serial entrepreneurs working on their second or third venture and have 10 or 12 employees.

Three companies have products entering the market. Sweet Defeat has developed a lozenge that reduces cravings for sweets, available on their website and by subscription. (Www.sweetdefeat.com). Retia Medical received clearance from the FDA in December to begin marketing its Argos hemodynamic blood monitor. This monitor is used to monitor patients’ heart rates during surgery and is being adopted by top hospitals and medical centers. More info at www.retiamedical.com. And MediSprout has begun piloting its HIPAA compliant video platform connecting doctors and patients, called V2MD. Learn more at www.medisprout.com.

For more info or to tour BioInc, please contact Deborah Novick, 914-594-1999.

Service Providers

Dorf & Nelson LLP (D&N) is a full-service law firm for entrepreneurs, start-ups, and well-established companies. Our in-depth experience extends to the life sciences industry for which we focus on protecting valuable intellectual property assets and ensuring optimal corporate structure. We accomplish this by helping our clients to acquire their rights, to enforce their patents, copyrights, trademarks, and trade secrets, and to leverage their intangible assets for a return on investment.

Scott D. Locke is a partner and Chair of the Intellectual Property Department at D&N and oversees our life sciences practice area. He has provided legal services to innovative clients across many sub-disciplines including RNA synthesis; DNA synthesis; RNA interference, including siRNA and miRNA; SNP technologies; CRISPR technologies; bioinformatics; personalization of medicine; CBD products; gene therapy; detection of diseases and disorders; pharmaceuticals; and delivery systems. For these clients, D&N prosecutes patents and trademarks, licenses and litigates intellectual property rights, and conducts due diligence in connection with business transactions.

D&N also has extensive experience in helping entrepreneurs and early-stage businesses transform their vision into market recognized entities. Understanding the rapidly changing landscape in the life sciences industry, D&N’s corporate team, under the leadership of partner Martha Flanders, works to ensure that its clients' valuable contributions and innovations are positioned within the appropriate entity structure for potential business partners. D&N is the first and currently the only law firm in the United States to be certified Gender Fair.

For more information, please contact: smendelsohn@dorflaw.com or visit us at www.dorflaw.com

Before Silicon Valley, The HV

Matthew Vassar, Hudson Valley serial entrepreneur.

How did a third-grade dropout found the first women’s college? In a word grit. In 2016, Angela Duckworth authored Grit, a book based on her research on West Point cadets. Grit, a combination of passion and perseverance for a singularly important goal separates finishers from dropouts.

As a youth, Matthew Vassar took control of his character and future. Ambition, compassion and a life-long work ethic were his response to early financial insecurity. His quest was to leave a legacy funded by commercial success. Matthew Vassar was Poughkeepsie’s Ben Franklin.

“Progress is my motto”. Vassar’s first big step was running away from home at age 14, with the help of his mother. His first ‘big adventure’ took him to Balmville, a hamlet on the Hudson River adjacent to Newburgh. The next three years filled his head and hands with merchant business skills working in two small stores. He filled his pockets with $3,000 in cash savings (2019 value), and more importantly confidence. Self-awareness, leg one of his hero's journey - accomplished.

1810 finds 18 years old Matthew Vassar back in Poughkeepsie, as the bookkeeper and collector for Vassar Brewery, the family business. The next five years are a road of trials, testing his newfound abilities, and building the foundation for his future commercial success.

The Vassar Brewery is destroyed killing his older brother John.
His father is disabled by shock and grief,
He marries Catherine Valentine of Fishkill
M. Vassar & Co is launched. A new brewery is built on the site of his father’s destroyed brewery, on Vassar Street.

It would take the next 20 years to acquire entrepreneurial skills, scale his start-up, and build equity to power the serial-entrepreneur years to come.

Poughkeepsie’s Ben Franklin did not stop at flying a kite. Matthew Vassar precedes Andrew Carnegie in transforming commercial success into civic philanthropy and social venture investment.

Co-Founder, The Poughkeepsie Savings Bank
Co-Founder, Farmer & Merchant National Bank
Built a four-story, 40,000 Sq. Ft. Hudson Riverfront brewery complex producing 50,000+ barrels of Vassar Ale, per year.
President of the Village of Poughkeepsie
Shareholder - The Poughkeepsie Whaling Company
President, Investor in building the Hudson River Railroad, which morphed into the New York Central Railroad.
President, Investor in building the Poughkeepsie Aqueduct & Hydraulic Co., which morphed into the Poughkeepsie Water Works.

Matthew Vassar is on a roll…Matthew Vassar creates his lasting legacy in Part II (September newsletter)..

This Before the Silicon Valley, the Hudson Valley blog offers a 400-year narrative journey honoring the Icons of entrepreneurship and their impact on invention, innovation, and commercialization in the Hudson Valley.

Don Delaney

Contact welcome: Donald J. Delaney, HV Entrepreneurship Historian & Blog Writer for the HV Venture Hub. You can reach Don at don@dondelaney.com

Events

August 12 (Wappingers): Hudson Valley Women in Business (HVWiB) monthly meeting

August 23 (Rhinebeck): Free Coworking Day at CO! Designed with purpose to inspire creativity and collaboration. Don't miss this opportunity to experience the premier coworking center in the Hudson Valley!

September 9 (Newburgh): Hudson Valley Women in Business (HVWiB) monthly meeting

September 12 (White Plains): May 30 (White Plains): Westchester Angels Investor Meeting (for accredited investors) and After Meeting Networking (open to all)

September 12 – January 30, 2020: 60 Hour Entrepreneurial Training Program. Do you have a business idea and don’t know where to start? Have you started a business and need help with what to do next? Then our program is for you!

October 11: Hudson Valley Tech Festival is now accepting speakers and participants to showcase regional tech businesses and talent. Contact Yulia Ovchinnikova at festival@openhubproject.com

October 17: SAVE THE DATE for our 1st Annual Venture Fest, hosted by the HV Venture Hub, Presenting Sponsor - The Pasternak Family Foundation

November 22 (Valhalla): Grow Your Business Conference at the Westchester Community College

Comments? Email Tony DiMarco at dimarcoa@newpaltz.edu