PM360 introduces you to the people who invest in and help startups succeed. In this case, meet Harvey Brofman.
Affliations: President, Nine 4 Bit Slices, LLC; Managing Partner, AngelFire Ventures; and Board Member of the New York Angels
Current Healthcare Portfolio: Thetis Pharmaceuticals, SynchroPET, PAVMed, Point of Care Systems, Capillary Biomedical
Preferred Level of Investment: Early investor, usually before Series A. Invests anywhere from $25,000 to $1 million per company.
What He Looks for in Startups: “I tend to look for solutions. I’m not interested in the latest app or a potential feature for another product. I want a company that is bringing the whole thing to the table. That way, they’re controlling their own destiny. The second most important thing: The team. I’m very uncomfortable with a single-founder company, because there is too much risk on one person. I like to see a good, diversified team that knows how to work together.
Approach to Companies in Portfolio: “I like to protect the investment, so I tend to invest with other investors, with at least one of us with experience that will directly help the company. Sometimes that may be me, other times it will be someone else, but I want to make sure someone has the ability to help companies through those things that are not directly within their skillset.”
Finding Startups to Invest In: “One way is through New York Angels, which is made up of 130 members and gets hundreds of applications each month. We sort through those and decide who are interesting candidates and then if there is enough interest to work with them. Another way is through syndication. That is when you work with other angels, VC firms, or investment groups to fill a round of funding. And then just through connections, whether that is people on LinkedIn or other people you have worked with in the past. I don’t usually do a lot of cold inquiries, but sometimes something strikes you.”
Success Story: Founded OPUS Health in 1994, which became a pioneer in the copay card space. Sold the company to Dendrite International in 2006.