eGateway Capital
Based in: Covington, Kentucky
Year you began investing: 2021
Key companies that you’ve invested in: Flowspace, 80 Acres, Cargomatic, Samcart, Firework, VidMob, Overhaul, Nok
Top executive: Chad Summe, managing partner, provided answers below
Summe’s hometown: Edgewood, Kentucky
Lives: Edgewood
Education: Naval Academy; MBA, Duke University
Hobbies: Fly-fishing, tennis, and all outdoor activities with my kids
What’s one thing you always look for in a pitch? eGateway plays the role of strategic capital on founders’ cap tables. Because of that, we look for founders who are receptive to the role of a true strategic partner and can benefit from the strengths of the eGateway team and community. Authenticity, resiliency and humility are some qualities we value.
Best piece of advice for startups that are fundraising right now? The advice we are giving our founders in macro-economic times that create capital scarcity is to reduce their burn and focus on profitability.
What’s been your strategy on investing in startups as many VCs have pulled back in 2023? We have made two investments in 2023 and found that quality has risen as capital has become scarce and deal structure has come back. We have seen this come to light in the form of dynamic liquidation preferences.
Tell us about one of your portfolio companies that is doing well. We love to highlight our one regional company – 80 Acres. Based in Hamilton, Ohio, 80 Acres is a vertical farm that produces leafy greens, herbs, tomatoes, salad kits, etc. It was recently announced that they inked a deal with Kroger to expand into more than 1,000 stores. Their newest most technological advanced farm is located in Northern Kentucky in Florence.
What’s a Kentucky company you’ve been keeping your eye on? GoWild [Holler Commerce] and HANDLE Global, both located in Louisville.
What kind of deals are you interested in? We believe that over the next few decades the world will continue to become more digital. With that said, we are looking for growth stage technologies that are powering the future of digital commerce.
