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Voices of the tech community – Part 5: And about the money…

Tech eggAs part of a look back -- and look ahead -- at community-wide efforts to build or accelerate a technology-entrepreneurial  ecosystem in South Florida, I asked a sampling of entrepreneurs, investors and service providers for their views with a variety of questions. We've put a sampling on this blog throughout the week. This is the last installment.

Find the main stories in the tech hub series here: fundraising and progress/challengesSee Part 1 herePart 2 here,  Part 3 here and Part 4. Find the entire series easily under the Tech Hub Series category of this blog. 

 What's your view? Add your comment on this post, email me at ndahlberg@miamiherald.com or tweet me @ndahlberg. Thank your for reading.

Today's questions:

As an investor, how would you describe the quality of deals you are seeing in South Florida?

"The deal are getting better in quality but we still need to see more companies. It's a numbers game and we need to increase the size of the funnel to increase the number of successful companies coming out of South Florida." - Ed Boland, Scout Ventures

"Improving with confidence and organization, such as the newly launched AGP, where I sense palpable excitement." - Peter Kellner, Richmond Global, Endeavor

 “Without doubt I am seeing a larger and better deals out flowing, driven by the emergence of the number of accelerators and incubators during the last 12-24 months.  The quality and preparation of the entrepreneur teams is also unequivocally superior.  However, I am still not seeing deals that seem to ‘jump the curve’ in uniqueness and potential.” - Ricardo Weisz, NorthVest, Miami Innovation Fund

Deal quality has been extremely high over the past two years.  We are seeing (1) technologies and products that address real and often novel market needs, (2) more complete management teams with deeper domain expertise, (3) realistic expectations from founders regarding their venture's intrinsic valuation and acceptance of the deal terms which investors require in order to make an attractive risk-adjusted return." - Rhys Williams, New World Angels

If you have raised funds, have the sources been local or elsewhere?

"SportsManias has been able to raise funds locally with ideal investors whom not only have provided the resources needed, but completely understand our vision. Jorge Mas of Mas Equity Partners is the ultimate sports fan that is precisely whom our app and website is designed for, therefore, he gives us important feedback as an end user, as well as, providing us the investment and network needed to continue to grow exponentially." - Aymara Del Aguila, SportsManias

"We were fortunate to have worked in our industry for over a decade before launching our business and initially raised funds from a friend who knew of our background. Eighteen months later, one of our new customers, which is based in Broward county, loved our solution so much they initiated a conversation that's leading to us closing a round of funding on Oct 1st. - Marlon Williams, Fenero

 How would you characterize the fund-raising environment here?

"Very poor. Investors do not pull the trigger fast enough and only a couple are truly doing early stage. B2B startups can have revenue early but B2C startups have a very hard time getting revenue until after a launch and sometimes months of customer acquisition, which is a prerequisite for most investors here." - Susan Amat

"Unhealthy for entrepreneurs. Slim pickings, low evaluations, and lacking in network reach critical for future fundraising needs." - Stonly Baptiste, Urban.Us

"The fund raising environment is slim to none in South Florida. It is dominated by a small handful of organizations which all seem to be part of each other. Makes it tough for entrepreneurs to get the best deal in their fund-raising activity. We raised a small pre-seed locally, but had to find sources outside of the market for my next round, which came from an angel in New York." - Darren Atinsky, WedWu
 
"On the seed level, it's thriving. There is a lot of new angel activity. However, it's still difficult for startups to make the jump from seed level rounds to a proper Series A or B round locally. Most entrepreneurs here are still going to have to go out West or to the Northeast to get those kind of deals done." - Will Weinraub, LiveNinja 

What will it take to develop a stronger investor network here?

"Money follows talent. We need to incubate companies at the earliest stages and allow talent, drive and opportunity to thrive," Jeff Brown, Palm Beach Angels

"Investors network with other investors constantly. For investors here or from out-of-state, we need draws to bring them together – things like eMerge and the Forum’s Capital Conferences, and other networking opportunities. There is a tremendous amount of money in Florida that doesn’t get deployed in early or venture-stage companies – often referred to as “money behind the palm trees” – but that is changing thanks to initiatives like the Forum’s that educate investors on becoming angels, and South Florida’s own EarlyShares that provides a platform for investors to find and invest in growing companies." - Kevin Burgoyne, Florida Venture Forum

 "Education, success cases of local entrepreneurs and investors from other cities coming to Miami are helping to develop a stronger investor network here. Talent attracts capital too. There are many local leaders that are supporting younger entrepreneurs which is critical for the ecosystem. In the same spirit, at Endeavor Miami we believe that a key to success is the example and commitment that a few local high-impact entrepreneurs dedicate to their local community - by supporting others as mentors and/or eventually as investors." – Laura Maydon, Endeavor Miami

We need leaders and role models in our investor community. We need more investors like Mark Kingdon, highly connected individuals who are experienced investors and tech entrepreneurs themselves.” – Carlos Garcia, Nobox

"Continued examples of success, greater connectivity and easier ways to plug in to the community we are continuing to build, and telling our story well. We've seen more and more opportunities for investors to learn more and connect around successful startups through initiatives like Endeavor, Accelerated Growth Partners, Florida Institute for Commercialization of Public Research angel investor seminars, and Enterprise Development Corporation. As a result, the momentum is growing." - Matt Haggman, Knight Foundation

If you could add one ingredient to the South Florida entrepreneurial ecosystem right now, what would it be? 

"Liquidity. The more exits that our market experiences, the more smart-money that'll be on the table. Excellent entrepreneurs tend to fund excellent entrepreneurs. The council of folks who have been through the journey and can relate empathetically is extremely valuable. A confluence of both will lead to a more robust ecosystem." Richard Lent, Thesis Ventures

Leadership, growth and mentorship are all vital to the tech scene in South Florida.  However, more important are the cutting-edge technologies that leverage Miami’s unique Latin American footprint.  We should focus on leveraging our strengths and seek to innovatively remedy issues that affect the Latin American market.  With the recent Apple Pay news, the mobile payments industry is on the forefront of technology growth. At YellowPepper, we’re harnessing similar mobile technology that has historically had its sights set on the U.S. market, and enabling its use for a growing middle class across the region. We want to see more of this taking place in our Miami backyard and are eager to help fuel future innovation.” -   Serge Elkiner, YellowPepper

"A BIG Google office!  A mega billion dollar exit!  Seriously, though, we could use more developer entrepreneurs." - Mark Kingdon, angel investor

In building an ecosystem, in what area has the most progress been made in the last year?

Exposure.  Thanks to the national and international efforts of eMerge Americas, the Knight Foundation and some far reaching programs such as Venture Hive, Miami is becoming known for its pioneering and entrepreneurial community.” – Mike Tomas, Bioheart

"South Florida’s technology community has grown beyond the plethora of great ideas; we have built a support system, providing entrepreneurs with the tools, resources, talent and funding that are needed to turn their ideas into viable products.  In parallel, top talent from the corporate world is joining the community. At Rokk3r Labs, we are gaining leaders and entrepreneurs from this pool, providing the tech hub with a wealth of knowledge and experience to help co-build amazing companies. Attracting more talent and investors to the community will be key for the upcoming year to help continue the development momentum." - Nabyl Charania, Rokk3r Labs 

"Organizations have been doing a great job of bringing in individuals and institutions that have brought technology to the forefront of Miami's political and business communities.  Many conferences have taken place, educational institutions have taken notice, and the local community has expressed interest in taking part in the tech movement.  Unfortunately, the low income communities are still being left behind and out of the conversation." - Derick Pearson, Code Fever

If it takes a village to raise a child I believe it takes a city to raise a startup. Diverse new players​ have come in the ecosystem in the last year (eMerge conference, Scout Ventures, MaverixLab, the "new" AGP, Wyncode, Thesis Ventures, Code for America, the Microsoft Innovation Center at the Venture Hive to name a few) creating ​a higher "density” of people who can be there at the right time and ​at the right place to connect startups with money, experience, knowledge and services.” - Ivan Rapin Smith, Idealy

 Posted Oct. 11, 2014

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