“I made my first investment at age eleven. I was wasting my life until then.” — Warren Buffet
- Retooling equity models
- Innovative help wanted
- The Pirates and SMBs
- Startups hitting the runway
- Bay Area co. expands into Michigan
- Drug plant coming to Indy
- Fueling the Future
- Name that Flyover City!
Aug 6, 2020
The Seats team at Thoroughbred Park in Lexington
Startups and longstanding businesses with capital needs typically face a choice between debt and equity, but a Lexington, KY-based fintech wants to offer companies a new way. Seats Capital, founded this year, offers a hybrid middle ground based on future revenue. The revenue-based financing could be ideal for business leaders who don’t qualify for—or simply don’t like—existing debt and equity models.
In a nutshell, Seats slices up the future potential revenue of a company and sells it in chunks to individual investors. The model lets business leaders focus on the business of the company and its near-term targets. Shorter time horizons and a simpler valuation model mean the system offers better and faster liquidity. It also avoids the challenge of constantly trying to quantify future valuation.
For investors, it’s an opportunity to invest in a horizontal band of revenue instead of a vertical slice of a company. Investors can also make smaller bets, with investments of as little as $1,000.
Seats’ leadership team believes its system will assuage friction between entrepreneurs and investors and streamline revenue assessment. “We think of it in terms of probabilities," CEO Shane Hadden said. “It’s a lot easier to value the probability of hitting a revenue target than to value a company.”
Seats has just learned that it will be part of this year’s Launch Blue, a non-equity seeking pre-seed accelerator program designed to nurture the most promising Kentucky founders.
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Build emerging tech for better health outcomes
Peter Margolis, MD, PhD, co-director of the James M. Anderson Center for Health Systems Excellence, and his team at Cincinnati Children's have been transforming pediatric medicine for years. They've been doing it by facilitating Learning Health Networks (LHN).
John Bostick, CEO of Hive Networks, spent three years studying Margolis’ work in order to develop the technology to empower doctors and researchers on their quest to improve health outcomes for patients. Carolyn Wong Simpkins, Senior Advisor of Clinical Strategy at Hive, explains what Hive does:
“Hive created a system in which shareholders could, using software, share measurable goals and available resources and hold each other responsible for making progress toward the goals,” she said.
This includes the patients and their families. Patients bring new perspectives to bear on the problems the group is trying to solve. “That sounds obvious, but it isn’t always so,” Simpkins said.
“One young patient had a condition where he had to have an NG tube inserted frequently. He taught himself how to administer the tube, created a video and posted it to the community to help others,” she said.
Hive is taking this momentum to scale and grow beyond pediatric-focused networks to those addressing conditions that impact a wide array of patients. The company is creating a paradigm shift in the healthcare industry by changing the way clinicians and patients use technology to work together and improve health outcomes.
Hive is hiring for tech positions to help expand software development and adoption of its technology. You can get the details on the open positions here.
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Pittsburgh Pirates announce campaign to help SMBs
The Pittsburgh Pirates have teamed up with PNC Financial Services Group to launch a new campaign called Family Forever. For the rest of the season, the team will offer free promotion to six small businesses and six nonprofits for nine days each.
The Pirates will use various media platforms to feature the small businesses, including social media, “in-broadcast drop-ins,” signage at the park, and 30-second TV and radio commercials. The nonprofits will receive similar promotion via highlight videos and in-broadcast interviews, as well as contributions from the Pirates and PNC during the time they’re featured.
In a press release, Pirates president Travis Williams said, “We have said it before and we truly mean it--as Pittsburghers we take pride in building each other up and helping where we can in times of trouble. That is what makes this community unique."
Making it easier to return online purchases
At a recent virtual demo day hosted by pre-accelerator Startup Boost Pittsburgh, entrepreneur Evgeny Kostromskoy pitched the idea behind his company, PorchShip. The business is based on the concept that while online shopping has skyrocketed, returning merchandise can be time consuming and inconvenient.
PorchShip plans to handle those returns and spare customers that inconvenience—and it hopes to employ drivers working for other services who are out making deliveries anyway.
From the user standpoint, the process couldn’t be simpler. Customers schedule a pickup and put the item (packed or not) on their porch, along with a label identifying the drop-off location. The PorchShip driver will take it from there, and the user will get a same-day alert letting them know that the merchandise has been returned.
Tandem takes the hassle out of babysitting gigs
Columbus-based startup Tandem bills itself as “the free market for care services.” Although it may expand into other services, right now the company is focused on babysitting, facilitated for families looking for a sitter and sitters looking for work. Tandem acts as a liaison, vetting babysitter applicants and supplying parents with optimal candidates.
The platform is indeed free, but with a twist: Parents pay their sitters online through Tandem, which then deposits the proceeds into a special debit card for the babysitters. The card is good wherever Visa is accepted, in person or online. When a purchase is made using the card, the merchant pays the usual transaction fee to the card issuer—which in this case is Tandem.
Digital twinning company expands into Michigan
A Bay Area company that specializes in “digital twinning” is expanding into Flyover Country with an advanced manufacturing space in Ann Arbor. The company, UrsaLeo, helps manufacturers and other customers increase virtual modeling, which is especially valuable during coronavirus quarantines and social distancing.
Digital twinning is an IoT tech that creates 3D photorealistic models of factory floors, equipment, and product models. Using the digital twin, companies can conduct remote training, operations, and product demos for their customers. UrsaLeo counts agriculture, medical, manufacturing, energy, and building management companies among its customers.
Cancer drug plant coming to Indy
A biotech company that makes drugs that fight cancer is building a facility in Indianapolis. Advanced Accelerator Applications S.A. has signed a deal to buy land near the Indianapolis International Airport, where it will build a 50,000-square-foot manufacturing plant. The company is a subsidiary of Novartis AG.
The drug maker will manufacture radiopharmaceuticals called “targeted radioligand therapy” at the new facility. The technology combines a radioactive particle with a precision-targeting compound that inhibits tumor growth without damaging surrounding healthy tissue. The company’s top drug, Lutathera, was approved by the FDA in February to treat tumors in the digestive tract.
It's ... Name that Flyover city!
- What city served as Ohio's capital prior to Columbus?
- The biggest children's museum in the world is located in what city?
- This city is home to the largest stadium in the US. What city is it?
Click here for today's answers.
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