Companies to Watch: Five New York Founders Solving Systemic Challenges
Is New York’s hottest new accelerator … Citi Field? Earlier this month, while the Mets were cementing a record winning streak on the field, a group of founders were among the sea of fans, charting what’s next for New York tech.
Tech:NYC partnered with the Citi Impact Fund to gather a group of diverse NYC founders and tech leaders — over burgers at the ballpark! — to celebrate the resiliency of the city’s tech ecosystem and exchange ideas on how to accelerate our shared equity and inclusion goals.
“The mission of the Citi Impact Fund is to accelerate scalable solutions impacting underserved communities and to advance gender and racial equity. We’re proud that over 70% of our portfolio companies were founded by people of color and women, and we look forward to continuing to engage in the city’s dynamic and diverse tech ecosystem to identify innovative companies that help advance access and opportunity. ”
As part of a new Innovation Indicators initiative, Tech:NYC released updated data that found Black and Hispanic workers make up 20.8% of NYC’s tech workforce, more than the other two leading US tech hubs, San Francisco (8.5%) and Boston (9.7%), combined. That’s notable progress, but still far off from being reflective of the city’s broader population. There’s more we can do to invest in the long-term success of entrepreneurs of color, and by extension, New York itself.
For this month’s Companies to Watch, we spoke to five founders — and perhaps newly-converted Mets fans — that are leading by example and applying innovative solutions to some of society’s most pressing challenges.
NIVELO
What does your company do?
Nivelo founder and CEO Eli Polanco: Nivelo’s products allow companies to beat payment fraud, collect payments, pay bills and unlock cash flow with unprecedented ease and speed. Companies can find our products today embedded in their favorite payroll platforms.
A question we love to ask every founder: why New York?
EP: New York is the epicenter of financial technology innovation. The proximity to financial institutions and tech talent made it a no brainer when thinking of where to invest my efforts when starting a fintech company.
How is Nivelo getting income payments processed faster? When you’re building your product roadmap, are you thinking about the worker being paid or the employer managing payroll?
EP: Payroll money movement is complex and time-consuming. The process takes days. This means days of money not being available to invest in your business or days of the worker not receiving their cash needed to be financially healthy. Nivelo accelerates the movement of money so that the process takes seconds instead of weeks. Payroll companies connect to Nivelo to allow their clients to easily access our products.
And a core component of your platform is making sure speed doesn’t sacrifice security. Were businesses prioritizing risk adequately enough before the pandemic? Even more transactions are happening online now, so has it become more imperative?
EP: Users expect payments to move digitally at faster speed. Speed undoubtedly comes with less time to properly monitor and validate a payment. This adds to the urgent need for faster safeguards in money movement. We will not be able to enjoy the benefits of faster access to money without faster and improved risk and fraud protection.
Where can the New York tech sector go further to expand diversity and equity efforts for founders here?
EP: Blind admission VC backed studios where founders can access free workspace for a limited amount of time to network and build new ideas. The focus on “pattern-matching” in early venture deals is one of the biggest blockers to equitable access to resources when founding a company.
Okay, some rapid fire questions. First: where do you get your favorite pizza slice?
EP: I’m obsessed with the marinara slice at Impasto in Clinton Hill
What’s the best place in New York for a coffee or lunch meeting?
EP: The Marlton Hotel near Union Square. It’s quiet, convenient to a lot of subways and has a great fireplace during winter.
Can you shout-out one other NYC-based founder you’re really excited about?
EP: Kelly Ifill at Guava is building a more inclusive bank!
FLUME
What does your company do?
Flume co-founder and CEO Prashanth Vijay: Flume is a last-mile broadband provider in NYC (and soon launched in two other states). Flume has a unique, asset-light approach by using unused fiber to deliver gigabit internet and Wi-Fi to homes. Our aim is to be available in over a million homes over the next five years.
A question we love to ask every founder: why New York?
PV: I love the hustle energy here. Everyone is always scheming and willing to work hard, and it’s infectious.
A 2014 report found that 27% of NYC households lack at-home broadband access. A 2021 updated report found that it had inched up to 29%. Are you finding similar numbers today?
PV: We come across many homes in NYC that are relying on public Wi-Fi or on a single member on the floor of their building for internet access. While the actual percentage estimates across the city are tough for us to tell, we are proud to share that 20% of our customer base in affordable housing is using home internet for the first time ever!
What is it about fiber technology that makes it an attractive alternative to larger, traditional Wi-Fi networks?
PV: Most networks today are cable-based or have copper into the home. Cable technology uses more power and generally has higher maintenance costs than fiber, which can be scaled to over 100GB of capacity on a single strand based on the equipment you put on either side. For the customer, this means faster, more symmetrical speeds and less downtime or service issues. Flume believes fiber plus Managed Wi-Fi is the future of home internet, as well as internet in urban public spaces. It offers reliability and security and can be used to ‘backhaul’ other technologies like 5G and IoT networks.
But getting fiber installed — especially in cities as dense as NYC — requires a lot of coordination with municipal government agencies. What suggestions would you give those agencies to make it easier for Flume and other startups like yours to deploy your product?
PV: Many cities have unused poles, rooftops, and conduits that can be licensed to place fiber or attached to existing fiber lines. These are generally owned by an Information Technology agency or by a Transportation Agency within the city lines. Having access to these reduces the cost and time to deploy by 2-3x a traditional buildout in some cases.
What’s Flume’s footprint today? What’s one top growth goal you have on your list before the end of 2022?
PV: Flume today is available in over 8,000 homes in NYC across Manhattan, Bronx, and Brooklyn. Our goal is, by the end of the year, to be available in 20,000 homes and have launched our Los Angeles market.
Where can the New York tech sector go further to expand diversity and equity efforts for founders here?
PV: More meetups with diverse founders and investors, and city hackathons to solve NYC problems — I love these and we don’t have enough of them.
Okay, some rapid fire questions. First: where do you get your favorite pizza slice?
PV: L’industrie in Williamsburg. Get the Margherita.
What’s the best place in New York for a coffee or lunch meeting?
PV: Daily Provisions in Union Square. It’s near all the subways and has great pastries.
What’s your favorite hybrid/remote work office hack?
PV: We make sure every team member gets a lot of time in the field — at customer sites and network sites. The team is able to work out of coworking spaces throughout the city, which keeps it fresh.
Can you give a shoutout to one other NYC-based founder you’re really excited about?
PV: Dennis Thankachan from Lightyear — he’s working on something cool in an adjacent telecom space, and I think we need more folks to innovate in the industry to solve connectivity problems.
MOCAFI
What does your company do?
MoCaFi founder and CEO Wole Coaxum: MoCaFi is a financial technology platform that enables municipalities and other entities to electronically disburse economic benefits to millions of unbanked and underbanked residents and small businesses, providing recipients with affordable banking, credit, and other wealth-building financial services they need to grow and thrive.
A question we love to ask every founder: why New York?
WC: New York is my home and the community where I have grown personally and professionally. I owe success in my journey to being here. As I thought about the purpose of MoCaFi and the wealth disparities that exist here, I thought if we could use the platform to move this community forward, we would have a model we can replicate across the country.
Access to financial services, particularly for un- and underbanked communities, predates the pandemic, of course, but have the last couple of years shifted that picture for you? How has MoCaFi been responding?
WC: The picture didn’t shift for me — recognizing that branch-based banking is not serving many communities well is why I decided to start MoCaFi in the first place. Instead, the picture came into evident, stark relief. Just to ground the situation: According to the former New York City Comptroller, there are 1.2 branch locations for every 1,000 residents in areas with a majority-minority population, compared to 3.6 sites per 1,000 residents in areas that are majority white. The Bronx has the lowest concentration of bank branches per household of any county in the nation while also having the lowest median household income in the five boroughs.
No one community needs banking service more or less than another one, yet some groups have better access than others. The pandemic helped shift the thinking of others who now see the impact of lack of access to economic resources on some communities. MoCaFi’s business model is effectively helping municipalities and residents in those communities.
Especially now, cities and community groups are looking for more seamless ways to route resources and support they may be accustomed to turning to government for. What financial inclusion goals would you like to see the public and private sectors unite more around?
WC: Two inclusion goals come to mind: (1) Every resident in this country should have access to low-cost, high-quality banking services that enable people to keep more of their resources to support themselves and their families, and (2) everyone should be able to electronically access the government resources they’re eligible for.
What’s one top growth goal you have on your list before the end of 2022?
WC: Bringing MoCaFi to more municipalities and deepening our relationship with existing ones.
Where can the New York tech sector go further to expand diversity and equity efforts for founders here?
WC: Continue to help diverse founders access customers at scale. Investment dollars follow revenue.
Okay, some rapid fire questions. First: where do you get your favorite pizza slice?
WC: Dona Bella Pizza on Church Street. I love their inside-out Sicilian slice.
What’s the best place in New York for a coffee or lunch meeting?
WC: The Smith Nomad.
What’s your favorite hybrid/remote work office hack?
WC: Sitting at one of the outdoor tables on Broadway, using my headphones to do a Zoom call on a nice summer day.
Can you give a shoutout to one other NYC-based founder you’re really excited about?
WC: Jeff Lindor. The Gentlemen’s Factory is strengthening the diverse ecosystem of entrepreneurs in New York City.
EMTECH
What does your company do?
EmTech founder and CEO Carmelle Cadet: EmTech builds software platforms and APIs to connect central banks and financial institutions in a frictionless way. We believe by leveraging technology to modernize central banking infrastructure, we can make financial ecosystems more inclusive and resilient by design.
A question we love to ask every founder: why New York?
CC: New York keeps you hungry because you know anything is possible here. New York is where I learned about money, business, hard work, and grit — skills that have been pretty handy in starting EmTech. I started my career at IBM in upstate New York, but I’ve lived in NYC for over 12 years now. I went on to do my Executive MBA at NYU and my son was born in Harlem Hospital.
You’re working primarily with Central Banks across the globe. Why that customer persona, and what’s unique about their needs over other types of financial institutions?
CC: Every time we swipe a card and it works, it’s because of central banking. It is the invisible foundation everything connected to money relies upon. But now the plumbing is falling apart, at a time when blockchain, web3, APIs, and AI are all emerging as resilient and scalable technological breakthroughs for financial services. We know bringing them to central banking will unlock unprecedented value for them and the ecosystem relying on their infrastructure (banks, fintechs, and other businesses).
Central banks are at the center of both regulating and issuing their own digital currency. That’s their mandate, and they are unique in that sense. And, yeah, we found a way to monetize it!
Last year, you testified in front of the US House of Representatives on how to make financial services more inclusive. What are some of the suggestions you gave them?
CC: There were the key points I cared to bring in my message: (1) make financial inclusion a priority; (2) use distributed ledger (DLT) and tokenization technology to drive trust; and (3) adopt a regulatory sandbox to better collaborate with fintechs and banks.
What’s the most pressing regulatory hurdle fintech companies and financial institutions will be focused on next?
CC: The regulatory framework for crypto and stablecoins is a hot topic. Also, what if fintech is bigger than a bank? Should they be regulated like a bank? There are pushes for “activity-based” regulation instead of entity-based, which I think can make it very difficult for companies to comply. That’s what we’re working on already by developing Regulatory Reporting APIs for fintechs to use seamlessly.
Where can the New York tech sector go further to expand diversity and equity efforts for founders here?
CC: Invest in Black fund managers. Don’t use the Silicon Valley metrics to invest; instead, allocate more budget for more investments in ideas.
Okay, some rapid fire questions. First: where do you get your favorite pizza slice?
CC: Ray’s Pizza by Astor Place.
What’s the best place in New York for a coffee or lunch meeting?
CC: Il Caffe Latte in Harlem, Tommy Bahama in midtown, and Sarabeth’s downtown.
What’s your favorite hybrid/remote work office hack?
CC: I enjoy working in my backyard or at the park during the summer.
Can you give a shoutout to one other NYC-based founder you’re really excited about?
CC: Natasha Bansgopaul, a serial founder who’s building the next BlackRock for crypto globally. She also currently sits on our advisory board.
MY HOME PATHWAY
What does your company do?
My Home Pathway founder and CEO Castleigh Johnson: My Home Pathway is a fintech startup developing a revolutionary platform to give more people an opportunity to buy a home. Recognizing that the current system for applying and getting a home mortgage loan is complex, not transparent enough, and riddled with inequities, our app helps individuals improve their financial health and navigate the mortgage loan process.
A question we love to ask every founder: why New York?
CJ: As an immigrant to the US, New York is a global and cultural icon and the place where dreams are made with grit and determination. It’s also the center of global finance and to make a change in the financial outcomes for a significant number of underserved communities, including younger millennials, there is no better place to make a difference.
The vibrance of the city and the dynamic groups that make New York the melting pot of the country is also one of the biggest benefits to being in the city. As many positive things there are about New York, there is still significant inequity in wealth and opportunities and that is something for everyone to work towards addressing. When more people can benefit from the economic center, we make the pie bigger, and as the pie gets bigger, there is more of it for you — think of your own self-incentive.
You founded My Home Pathway just before the pandemic hit NYC, and of course, housing became one of the areas that saw the most fluctuation during 2020. Did COVID-19 impact your roadmap or shift how you wanted to launch your company?
CJ: COVID actually made our work more important — it made it more evident to the larger society how financial and real estate inequity were impacting minority communities even more starkly today than many had wanted to believe. Financial inclusion became popular for a bit, with pledges made around providing more access to mortgages to minority consumers and efforts to explore some of the related systemic issues. For us it was welcomed — we had been talking about this for a while, and we launched, we knew there would be a greater negative impact on those same minority communities. The gap has continued to widen, so the work is even more critical today than ever.
Your product is as much about building financial literacy as it is achieving homeownership. What’s one misconception people have in assuming they don’t (or can’t) qualify for a mortgage?
CJ: Down payments are usually one of the biggest misconceptions about getting qualified for a mortgage. There are less ‘starter’ homes available today than in previous decades, so the prices are higher, especially for first time buyers. But there are thousands of Down Payment Assistance programs available throughout the country and with many lenders. There are also loan options available with 3.5% down payment, but buyers should also consider closing costs as part of the funds they will need to complete the purchase — that runs another 3-4%. So I’d say buyers should conservatively target 7-8% of the purchase price of the home for funds needed to complete the transaction.
The mortgage process is, as you’ve mentioned, complicated and outdated, especially for Black and Latinx applicants, who are still more likely to be rejected for mortgage loans than white applicants. What else needs to be done to correct for this?
CJ: Financial education and getting a better understanding of finance is needed from a consumer standpoint, but the information has to be delivered in more relatable terms. Financial literacy needs to be targeted to actually improving financial outcomes, not a check-the-box activity still prevalent in most institutions. The rules in personal finance also evolve over time, so consumers have to pay attention to these changing dynamics to ensure they will continue to improve their position.
From a structural standpoint, there needs to be more control and transparency given to consumers of their financial information — that includes credit reports and banking data. Open banking, where a consumer controls their own data, needs to be adopted more effectively in the US. White homeownership did not get to where it is without targeted programs from the US government and financial institutions — think the GI Bill and government-backed mortgages. Targeted funding programs — down payment assistance programs, affordable housing grants, and access to capital for minority developers — also need to reach minority consumers if we’re serious about addressing many of the past systemic issues the real estate and financial services industries have been active or passive participants in.
My Home Pathway is also part of the solution. We’re working with lenders that want to support consumers that need a little more help meeting their underwriting requirements and want to guide prospective homeowners on the path to achieving their dream of owning a home. A home is more than a place to live, it is the cornerstone of building wealth, and denying access without providing help perpetuates the same cycles of decades past.
What’s one top growth goal that’s on your list before the end of 2022?
CJ: Close 3-4 strategic partnerships with mortgage lenders and/or banks. That’s how we’ll be able to provide a more viable option for those that would like to get into homeownership but don’t currently qualify.
Where can the New York tech sector go further to expand diversity and equity efforts for founders here?
CJ: Quite simply fund more diverse founders. The intentions are there, but the funding continues to lag far behind. Let’s turn good intentions into funding and partnership opportunities so that diverse founders can also solve large problems and produce impactful companies. Cut the check.
Okay, some rapid fire questions. First: where do you get your favorite burger?
CJ: Burger & Lobster in Flatiron. Great food and reasonable prices.
What’s the best place in New York for a coffee or lunch meeting?
CJ: BLVD Bistro in Harlem is one of my favorite lunch places. I started going there years ago and the food is amazing with a great atmosphere.
Can you shout-out one other NYC-based founder you’re really excited about? Why?
CJ: I’ll do one better and shout out two amazing founders: Kelly Ifill at Guava and Alyse Dunn at Care Copilot.
