By: Ben Freeberg
AlphaSource Advisors is an impact focused investment firm whose mission is to produce market returns while supporting entities that are creating real solutions for the environment, poverty, social injustice and protecting wildlife. The firm was founded in 2007 and has been majority female owned and managed since inception.
The firm is run by Noelle-Claire LeCann, who has over 25 years of investment experience, and Richard Fronapfel, who has over 25 years of experience in technology and media. They currently have an eleven-member team supporting their diligence and investment efforts.
For VCs and Institutions:
AlphaSource invests globally. As part of an ecosystem of impact-focused and strategic investors, they bring resources and expertise to help mitigate the early-stage risk while enhancing impact and returns.
When AlphaSource invested in Wildlife Works, the first United Nations REDD+ approved developer, they were asked to create an institutional-quality impact fund focused on climate change enabling institutions to participate at scale.
This fund is particularly attractive to institutions looking to divest from fossil fuels and use their power as a large capital source to mitigate climate change. The fund has an extremely impactful, social component for local communities who are fighting to protect their surrounding environment and ecosystems.
AlphaSource is providing institutions with the tools they need to create transformative change while performing their fiduciary responsibilities. The firm is looking to meet and partner with firms who are committed to creating positive impact alongside market returns.
For Entrepreneurs:
First and foremost, it is important for each entrepreneur to have his or her financials and business model buttoned up. Next, the entrepreneur should have a deep understanding of the market and the company’s position within that market. What truly differentiates companies for AlphaSource is their interactions with the entrepreneur.
As investors, AlphaSource is focused on socially or environmentally impactful companies or disruptive technology, but in addition, AlphaSource is looking to invest in the entrepreneurs themselves. This relationship is, to some degree, like a marriage, so trust and belief in the entrepreneur is critical.
AlphaSource has 4 important values they seek out in entrepreneurs:
- Integrity/Honesty: Most investors are looking for partners, not just investments. Convey everything, not just details that paint your company in the brightest light.
- Passion: The best idea or technology doesn’t always win (see Betamax vs. VHS), so it’s critical to partner with entrepreneurs who have the belief and drive to continuously find new pathways to success.
- Knowledge: A great idea without a deep understanding of the market/sector, especially the tech, is just that…a great idea. When it comes to appropriate skillsets, a deep toolbox is required. A well rounded team/board is crucial to bring a broad range of experience, knowledge and perspective to bear.
- Vision: The meaning here is two-fold. The best entrepreneur, AlphaSource believes, is one with a long and specific vision. But, the entrepreneur must also know that pivoting focus to grow the company is inevitable, and they should strive to do everything they can to determine that path forward. The ability to keep a long-term vision for the company in mind while keeping one’s eyes on a changing landscape is often difficult, but ultimately a key indicator of future success.
This list represents the tip of the iceberg in terms of what AlphaSource looks for from an entrepreneur, but it’s a great place to start.
Startup Spotlight:
AlphaSource led the seed round of New York City’s Andium, a ground-breaking IoT company.
Andium is the world’s first modern Operating System (OS) for the hardware of the Internet of Things (IoT), bringing intelligence to the inexpensive, low-power devices that drive IoT sensors, and providing a level of technological sophistication previously unavailable in such cost-effective and power-efficient hardware. Andium’s key innovation is a proprietary, hardware-agnostic Virtual-Machine (VM) application layer that runs on inexpensive, low-power embedded System on Chips (SoCs).
Andium is the first Real-Time Operating System (RTOS) to provide a multi-tasking VM directly on embedded chips with RAM as small as 32Kb. This framework allows for the creation of improved IoT solutions at a fraction of today’s development costs and support throughout the entire product lifecycle.
In addition to their investment, AlphaSource has worked closely with Andium CEO, Jory Schwach to determine appropriate verticals to prove the technology as well as strategic partnerships to provide revenue. Andium recently concluded a successful, three month pilot of a building management system in Durst’s flagship building in NYC.
Thank you to Noelle-Claire LeCann, Richard Fronapfel and the AlphaSource team for assisting us with this post.