JHH vc, a 12-month review

Over the past year, the venture capital landscape has been tumultuous, particularly for late-stage companies. However, as a pre-seed and seed-stage investor, the outlook is more optimistic. Despite an overall contraction in funding, seed valuations are on the rise, and the median deal size in Q1 2023 grew to $3 million from $2.6 million in 2022, with median pre-valuation for seed-stage startups hitting $13 million, up from $10.5 million the previous year. The market's resilience is evident in the growing seed-stage activity, fueled by the proliferation of microfunds over the past few years. Despite the challenging macroeconomic environment, investors are finding compelling opportunities in high-quality companies, particularly within the emergent generative AI space. These dynamics suggest that early-stage investing remains a vibrant and promising sphere even amidst broader market contractions*1*.

Investing in early-stage companies is a long-term investment, and as such, we should not focus solely on the multiples we see today. Instead, we look to the future. The average time to exit for a pre-seed to seed-stage deal can be well over 10 years, making today’s multiples almost irrelevant to the exit environment a decade from now. However, seed stage startups currently face a significant challenge in meeting heightened expectations for traction and proof of concept. Investors are increasingly cautious, seeking early market validation and customer acquisition before providing funding. This demand for faster progress, coupled with longer and more rigorous due diligence processes, puts additional pressure on startups to navigate the evolving landscape efficiently and secure long-term success.

Investing at the stage we do is a team sport, which is why I’ve taken a moment to call out all the great investors and ecosystem partners who have introduced us to companies. Without them, we would not have met these great founders and look forward to continued and growing partnership with all of them.

In the past year, we have invested in 13 founders, including two follow-ons from previous rounds. We have an exceptional group of founders and we want to highlight each company for their strengths.

Want to submit a pitch?

Without further ado, please meet the 13 companies in which we invested in the last 12 months. Want to know more about any one of them? Just reach out!

Credit Mountain

Industry: #Fintech

CEO: Nathan Pinto

Introduced by: Mike Leffer, Riptide Ventures

Credit Mountain, a fintech startup based in Dallas, TX, was founded in 2020 by Nathan Pinto and Frank Santoni. The company offers a SaaS solution that provides a path to credit approval for individuals who have been rejected by lenders. The platform helps customers improve their credit scores by identifying which accounts to pay off first and automating extra payments to reduce debt faster. 

What we found attractive:

• Market Traction: Early market traction and an innovative go-to-market strategy were some of the top reasons we liked this investment opportunity.
• Innovative Product: By offering a path to credit readiness, credit unions no longer have to say no to customers while they help them build their credit f

Brandefy App

Industry: #CPG, #Beauty, #Retail

CEO: Meg Pryde

Introduced by: Daniel Clark, formerly 757 Angels

Brandefy is a consumer goods comparison platform, founded in 2018 by Meg Pryde that helps shoppers find affordable alternatives to popular brand-name products. The company analyzes and rates generic or lesser-known brands, providing consumers with reliable insights and product recommendations. The company also develops its own line of products based on the data driven insights generated by its users. In the current macro environment, where consumers are increasingly cost-conscious and searching for value-driven options, Brandefy's services align perfectly with the market demands.

What we found attractive:

• Market Disruption: Potential for disrupting the consumer goods industry
• Cost Consciousness: Capitalizing on the growing trend of conscious spending. Filling a gap in the market by offering a reliable and convenient platform for budget-conscious shoppers
• Data Driven: Innovative approach and ability to leverage data-driven insights for future growth and scalability.

Bright Software, Inc.

Industry: #HRTech, #AI

CEO: Robert Wright

Introduced by: Browning Herbert, Ringbolt Capital

Bright is an AI-powered immersive learning platform designed to transform employee training and development. The company focuses on providing interactive and personalized learning experiences for professionals across various industries. Leveraging AI algorithms, Bright analyzes individual learning patterns and delivers tailored content and simulations to enhance skills and knowledge retention.

What we found attractive:

• Rapid Technological Advancements: In today's macro environment, characterized by rapid technological advancements, there is an increasing demand for innovative solutions that effectively address the evolving needs of workforce training and development. Bright's AI-powered platform positions it well to meet this demand.
• Growing Importance of Upskilling: With the growing importance of upskilling in the workforce, organizations are actively seeking efficient and engaging employee training solutions. Bright's immersive learning approach, powered by AI, offers a compelling solution to address this market need.

Hubly Surgical™

Industry: #MedTech

CEO: Casey Grage

Hubly Surgical, founded by a team of neurosurgeons and engineers, is a neurotechnology startup led by CEO Casey Grage that has developed the first and only FDA-cleared, single-use cranial drill with advanced safety and efficiency features. This drill is designed to transform bedside neurosurgery, notably reducing dependence on costly operating rooms.

What we found attractive:

• Innovative Product: Hubly Surgical's development of the first FDA-cleared, single-use cranial drill with advanced safety and efficiency features demonstrates its commitment to innovation and addressing the needs of neurosurgery. This unique product has the potential to revolutionize bedside neurosurgery practices.
• Experienced and Dedicated Team: The team behind Hubly Surgical consists of neurosurgeons and engineers, combining their expertise to drive the company forward. Their collective experience and dedication to the field instill confidence in the company's ability to deliver on its mission.
• Cost Savings and Increased Safety: Hubly Surgical's single-use cranial drill has the potential to significantly reduce costs by decreasing dependence on operating rooms for neurosurgical procedures. Additionally, the advanced safety features offer improved patient outcomes and enhance the overall safety profile of neurosurgery.

Accencio®

Industry: #IP, #DataVisualization

CEO: Kevin Brown

Accencio, led by CEO Kevin Brown, is an intellectual property strategy and intelligence company, specializing in the molecular-based industry and research. Their platform delivers a multi-level understanding of the targeted intellectual property space, identifying valuable opportunities and hidden threats in molecular science. It offers interactive tools and related analysis, consulting, and partner engagement services, providing vital and novel insight and support for intellectual property rights.

What we found attractive:

• Unique Positioning: Accencio occupies a unique position at the intersection of technology, data visualization, and intellectual property. This positioning allows the company to leverage advanced tools and analytics to provide a comprehensive understanding of the molecular-based intellectual property landscape, giving businesses a competitive edge in their decision-making processes.
• Potential for Industry Transformation: Accencio's platform has the potential to revolutionize how businesses navigate the intellectual property landscape and make strategic decisions. By offering interactive tools, analysis, and consulting services, the company enables businesses to uncover valuable opportunities and mitigate risks in the molecular science field, empowering them to optimize their intellectual property strategies.

Trustible

Industry: #AI, #ML, #Compliance

CEO: Gerald Kierce Iturrioz

Trustible, an AI platform for compliance and governance, was founded by Gerald Kierce and Andrew Gamino-Cheong, who bring a decade of experience in applying AI to the policy landscape from their time at FiscalNote. Trustible’s mission is to foster transparency, accountability, and trust in AI systems, which is timely as AI regulation becomes a top priority for enterprises. Studies indicate that over 80% of businesses intend to allocate at least 10% of their AI budget to meet regulatory requirements by 2024.*2*

In an environment where only 6% of businesses have established Responsible AI governance capabilities, Trustible's platform stands out as a promising solution. It facilitates the responsible scaling of AI initiatives and creates opportunities for competitive differentiation. The founders' track record and the growing market demand for AI compliance and governance solutions further contribute to Trustible's appeal as an investment opportunity.

What we found attractive:

• Unique Positioning: Trustible addresses the pressing need for transparency, accountability, and trust in AI systems. Its platform offers compliance and governance solutions that facilitate the responsible scaling of AI initiatives.
• Founder Expertise: The founders, with their extensive experience in applying AI to the policy landscape, bring valuable insights and a track record of success in the field.
• Growing Market Demand: The increasing importance of AI regulation and the limited presence of Responsible AI governance capabilities create a growing market demand for Trustible's platform.

Lunch

Industry: #Fintech

CEO: Cullen Gallagher

Introduced by: Gale Wilkinson, VITALIZE Venture Capital

Lunch Payments, co-founded by Cullen Gallagher, provides a vertically integrated factoring business that offers payment solutions for vendors of public school systems and financial tools for companies to access invoice financing. The platform combines collections and factoring, enabling companies to unlock cash stuck in unpaid invoices and focus on their core business.

What we found attractive:

• Resilient Business Model: Lunch Payments offers a solution to cash flow problems faced by vendors of public school systems. In the macro environment of 2023, where resilient business models that outperform during economic downturns are favored by investors, Lunch Payments aligns well with this criteria.
• Addressing Cash Flow Challenges: The platform's vertically integrated factoring business provides payment solutions and financial tools that allow companies to access invoice financing. By unlocking cash from unpaid invoices, Lunch Payments helps businesses address cash flow challenges and focus on their core operations.

GoDo

Industry: #Fintech

CEO: Wesley Wright

Introduced by: Caroline Gash, IrishAngels

GoDo, founded in 2021, is an early wage access platform designed to help workers escape the cycle of debt and live beyond paycheck to paycheck. The company offers solutions such as the GoDo Debit Mastercard and GoDo app, which eliminate financial pain points like minimum balance and overdraft fees, providing workers with no-fee access to earned wages at the end of the workday.

What we found attractive:

• Unique Business Model: GoDo's business model engages consumers through existing relationships with employers and nonprofits, allowing for efficient scaling without high customer acquisition costs. This approach sets GoDo apart and positions the company for growth and success.
• Experienced Leadership: Wesley Wright, with his extensive fintech and banking experience, brings valuable expertise as the CEO of GoDo. His background at Varo Bank and American Express adds credibility and industry knowledge to the company's leadership team.
• Addressing a Clear Market Need: In the macro environment, where millions of workers are burdened by payday lending, check cashing, and overdraft fees, GoDo's services fill a significant market need. The demand for accessible and affordable financial solutions is evident, making GoDo's offering highly relevant and valuable.

ELITONE by Elidah

Industry: #MedTech

CEO: Gloria K.

Introduced by: Bikram Bakshi, Blu Ventures

Elidah, founded by Gloria Kolb and her husband in 2014, is a startup that offers Elitone, a non-invasive solution for stress urinary incontinence, a condition impacting one in three women.

What we found attractive:

• Innovative Product: Elidah's FDA-cleared device, Elitone, provides a non-invasive solution for stress urinary incontinence. The innovative nature of the product addresses a significant medical need and presents a unique offering in the market.
• Impressive Track Record and Credentials: Gloria Kolb, the founder of Elidah, brings over 20 years of experience in medical device product development and commercialization. With a background in inventing and recognized with prestigious awards, Kolb's track record and credentials add credibility to the company's leadership.
• Potential Market Size: The market for women and men suffering from urinary incontinence is substantial, highlighting the significant market potential for Elidah's product. By addressing this unmet clinical need, the company can tap into a sizable customer base.

Mobius Materials

Industry: #Marketplace, #Semiconductors

CEO: Margaret Upshur

Introduced by: Paul Nolde, formerly Lighthouse Labs RVA (now 757 Angels)

Mobius Materials, founded by Margaret Upshur, is a pioneering B2B marketplace specializing in the trade of certified and authenticated used semiconductors through the company's patented technology. The platform addresses a critical need in the tech industry by providing a reliable source for quality-controlled, pre-owned semiconductors.

What we found attractive:

• Increasing Demand for Semiconductors: With the global shortage of semiconductors, there is a significant and growing demand for reliable and quality-controlled sources of these components. Mobius Materials is well-positioned to meet this demand, making it an attractive investment opportunity.
• Unique Value Proposition: Mobius Materials offers a unique value proposition in the market, specializing in the trade of certified and authenticated used semiconductors. By leveraging patented technology, the company ensures the quality and reliability of the semiconductors it provides, setting it apart from competitors.

DASCalendar (500 LatAm B18)

Industry: #B2C, #Productivity

CEO: Martin Sajon

Das Calendar, founded by Martin Sajon and Diego Spahn, is an innovative company offering a social calendar application designed to enhance individual productivity and time management. The solution addresses the growing need for streamlined scheduling in both professional and personal contexts, presenting a promising market opportunity.

What we found attractive:

• Experienced and Dedicated Founding Team: Martin Sajon, the co-founder and CEO of Das Calendar, brings a strong entrepreneurial background, having successfully led a previous venture to a successful exit. This experience and dedication of the founding team add credibility and increase the potential for success.
• Growth Potential in Productivity Tools Space: With the increasing demand for productivity-enhancing tools, Das Calendar has significant growth potential. The market opportunity for streamlined scheduling solutions is promising, positioning the company for success in the productivity tools space.

Cloverleaf AI

Industry: #AI, #DataAnalysis, #GovTech

CEO: Adam Zucker

Introduced by: Aaron Stachel, FirstMile Ventures

Cloverleaf.ai, led by CEO Adam Zucker, is a govtech platform with a mission to democratize access to government meetings. The company converts unstructured content into actionable dashboards, overcoming a significant barrier to citizen engagement and government effectiveness.

What we found attractive:

• Seasoned Leadership: CEO Adam Zucker's experience in building and scaling technology teams adds credibility to Cloverleaf.ai's leadership. His expertise positions the company well for growth and success in the govtech space.
• Novel Technology: Cloverleaf.ai's innovative technology allows for the sorting and delivery of critical information from millions of hours of government meetings. This enables organizations with vested interests in local policy to stay updated without the need to attend every meeting, streamlining information access and increasing efficiency.
• Alignment with Digitalization Trends: The company's commitment to making civic information accessible to all aligns with the push towards digitalization in local governments. Cloverleaf.ai's platform presents a compelling vision for the future of government participation and engagement.

Luminoah

Industry: #MedTech

CEO: Neal Piper

Introduced by: Paul Nolde, formerly Lighthouse Labs (now 757 Angels)

Luminoah, founded by Neal Piper in 2020, is an innovative medical device company that targets the enteral feeding market with a wearable product. Their solution combines durable medical equipment and consumable nutrition pouches, enabling doctors to monitor remote patients and clinical outcomes.

What we found attractive:

• Dramatic Improvement in Patient Outcomes: Luminoah's wearable product has the potential to significantly improve patient outcomes in the enteral feeding market. By providing doctors with remote monitoring capabilities, the company's solution enhances the level of care and supports better clinical outcomes.
• Team of Industry Veterans: Led by a team of industry veterans with deep med device experience, Luminoah brings a wealth of knowledge and expertise to the table. The team's track record of successfully bringing products to market adds credibility to the company's potential for success.
• Addressing a Market Need: The enteral feeding market presents a clear need for innovative solutions that can improve patient care and outcomes. Luminoah's wearable device fills this gap, providing a valuable offering in a growing market.