MONEY

Florida Angel Nexus invests $500K in big data startup

TaMaryn Waters
Democrat staff writer

The Florida Angel Nexus of Tallahassee made its first major investment, injecting $500,000 in a Tampa-based company relocating to Tallahassee in the next three months.

NewSci, a high-tech data startup, vows to change the way big data is gathered, discovered and interpreted for the nonprofit, education and health care sectors. Co-founder and CEO David Lawson, a Tallahassee resident, said his company pools data from varied sources, such as social media, reviews and documents, and helps his clients glean unique insights.

Lawson, an entrepreneur since age 19, said his company helps an organization get a complete picture by creating a "discovery platform," which then reveals how a person interacts with organizations. The investment boosts NewSci's ability to expand and to serve an untapped market in Tallahassee.

"We're looking for this company to be a substantial player, and we want to be a leader in the sectors that we have chosen," said Lawson, 54.

"What I believe with the big data technology, there's an opportunity here to really transform their technology infrastructure in a way that can help them transform their organizations. While it's not free, this is something that is within reach ... To me it's very important to serve the sectors with top tier technology, because the work they are doing is so important."

In Tallahassee, several companies sell hardware or provide consulting related to data, but few specialize in big data or connotative data, Lawson and Angel Nexus investors said.

NewSci was one of 10 startups requesting seed money from the Florida Angel Nexus in Tallahassee, a new chapter that launched in June. Local high-income investors, along with some in Orlando, were impressed.

"This one was an obvious choice and an obvious winner," said Jason Stamn, chapter co-founder and nexus investor.

With a staff of 10, Lawson now plans to hire dozens of employees over the next two years. NewSci first launched in late 2013 and has since amassed a client roster that includes Lehigh University, Mercy Health and United Way agencies nationwide.

The local angel nexus has half a dozen high-income investors, who collectively invested $300,000 in the company. Angel investors in Orlando and Boston each raised $100,000.

"What this means is that startups have a real shot at getting investment," said Matt Johnson, chapter co-founder and nexus investment member. "It keeps these companies in Tallahassee, and it attracts new companies to Tallahassee."

Angel investors typically invest smaller amounts of their own money into high-growth businesses, while venture capitalists are fund managers who invest other people's money. The angel nexus creates a buffer between the high net worth investors and the entrepreneurs seeking funding through an online application and vetting process.

"Otherwise," Johnson said, "you have ever Tom, Dick and Harry knocking on your door, and the nexus helps prevent that."

Johnson was optimistic the local chapter would make an investment early in its inception, which it did, but he admits fundraising was a challenge. So was finding one company every local angel investor could agree on.

Startups that have already applied still have a chance to secure an investment, Johnson said.

In two weeks, the local chapter plans to hear pitches from two companies, which haven't been selected yet, and the chapter will decide who will receive the next angel investment.