Opening Summary
The capital markets saw a significant rebound in 2024, improving markedly from the challenges of 2023. This positive shift was driven by key economic trends that created a more favorable investment environment.
Global economic resilience played a crucial role, as inflationary pressures eased and the Federal Reserve initiated a series of three interest rate cuts. These adjustments boosted market activity and investor confidence. Additionally, the long-inverted yield curve returned to positive territory, signaling economic stability and growth prospects. Credit spreads also tightened to multi-year lows, reflecting stronger corporate earnings and overall economic optimism.
As a result, liquidity in capital markets increased, leading to a surge in high-quality investment opportunities. This favorable climate enabled our angel fund to invest in promising startups poised for significant growth.
2024 Investment Activity
In 2024, we invested in four innovative companies spanning diverse industries:
• Shiny Solutions, Inc. (hospitality technology and cashless tipping)
• AGED Diagnostics (next-generation sequencing for liver disease detection)
• It’s Electric™ (curbside EV charging infrastructure)
• Change: Water Labs (waterless sanitation technology)
These investments align with our strategy of backing scalable, high-potential startups. A more detailed overview of each company is provided in the Index section at the end of this report.
Portfolio Overview and Valuation Methodology
As of the end of 2024, our fund has invested in 20 startup companies across a diverse range of industries, with all investments made at the early stages (either angel or seed rounds). Approximately one-third of our portfolio is in life sciences, while about half are developing SaaS tools. Several companies combine hardware and software to serve various industries, and a few focus on manufacturing specialized products for high-tech markets.
While each company faces its own challenges, the portfolio has shown strong resilience and progress. Notably, five companies have successfully raised Series A funding since our initial investment, demonstrating strong traction and investor confidence.
Unfortunately, one of our investments, CRISP-HR, ceased operations. When we invested in 2020, the company had promising Cas-9 gene editing technology with proprietary IP. However, advancements by leading research institutions rendered its approach obsolete. Despite efforts to pivot, CRISP-HR was unable to recover and officially shut down in 2023.
The following is a portfolio breakdown according to their funding stages:
• 5 companies have raised Series A funding, demonstrating strong growth and investor confidence.
• One-third of our portfolio has not yet raised additional funding beyond our initial investment.
• The remaining companies have secured additional seed or bridge funding to continue their development.
• 1 company has failed and ceased operations, resulting in a valuation of zero.
Valuation Methodology
At this stage, we aim to provide an estimate of our fund’s valuation, though it is important to acknowledge the inherent challenges in accurately assessing the value of early-stage investments. Unlike publicly traded companies with readily available market prices, our portfolio consists of startups at varying stages of growth, many of which have not yet raised additional funding rounds. For those that have secured further investment, the latest market valuations may be outdated, as some of these funding rounds occurred several years ago and may no longer reflect the companies’ current progress or market conditions.
Given these complexities, we adopt a conservative approach in our valuation methodology, using the best available information while recognizing the potential for underestimating the portfolio’s true value. Our valuation estimates are based on the following approach:
1. Companies that have raised additional funding – We use the most recent round valuation. However, since some of these rounds took place in 2023 or earlier, their current valuations may be understated as the companies continue to develop.
2. Companies that have not yet raised additional rounds – For those that have not secured further funding, including our four most recent investments, we assume their valuation remains at our initial investment amount.
3. Companies currently raising funds – We apply a conservative valuation based on our best judgment, considering their progress and market conditions.
4. Company that ceased operations – One portfolio company has failed and ceased operations, and we have assigned it a valuation of zero.
This structured approach ensures a realistic and balanced assessment of our fund’s value while accounting for the inherent uncertainties of early-stage investing.
Using this methodology, our current portfolio is valued at approximately 2X our initial investment, reflecting strong overall growth despite the loss of one company. As our startups continue scaling and securing additional funding, we expect further appreciation in portfolio value.
Conclusion and Next Steps
With the majority of our fund now deployed across 20 portfolio companies, we have built a diverse and promising investment portfolio. While we will continue to seek select investment opportunities with our remaining capital, our primary focus will shift toward monitoring and managing our existing investments.
Key priorities moving forward include:
• Supporting portfolio companies in securing future funding rounds.
• Evaluating follow-on investment opportunities.
• Assessing strategic decisions to optimize portfolio performance.
As our companies grow and scale, we remain optimistic about their potential and the long-term success of our investments.
GCAIA Capital LLC Management Team
Index: 2024 Investments
Shiny Solutions, Inc.
Shiny is an innovative online platform designed for the hospitality industry, helping managers optimize and incentivize their workforce while simplifying the tipping process with cashless payments. By enhancing the guest experience and modernizing an age-old practice, Shiny provides a seamless and efficient solution for both employees and customers.
Founded by two industry experts with over 20 years of combined experience in hotel operations, Shiny is well-equipped to address the sector’s unique challenges. Despite having a limited IP portfolio, the company has leveraged its first-mover advantage to secure contracts with over 200 properties, including being selected as a preferred tipping partner by Hyatt. With these strategic partnerships, Shiny is already generating strong revenue, showcasing its value and growth potential in the hospitality industry.
AGED Diagnostics
AGED Diagnostics is revolutionizing liver disease detection with the first accurate blood test for NASH (Nonalcoholic Steatohepatitis). Using next-generation sequencing (NGS), the test identifies NASH-specific genetic markers, distinguishing it from simple fatty liver disease. With multiple patents pending, this breakthrough test has the potential to improve patient outcomes and significantly reduce healthcare costs.
It’s Electric™
It’s Electric™ is transforming urban EV infrastructure with its innovative curbside charging stations. Founded in 2021, the company addresses the growing demand for public EV chargers by using a unique approach—running a shallow conduit from an adjacent building’s electrical panel to the curb. This minimizes infrastructure costs while allowing property owners to share in the revenue.
Already generating revenue, It’s Electric™ has deployed chargers across New York City and secured an exclusive contract with the City of Boston for further installations. Uber has invested in its latest funding round, recognizing its potential. The company has also gained media attention from Forbes, NPR, and The Wall Street Journal, positioning itself as a leader in sustainable EV charging solutions.
Change: Water Labs
Change: Water Labs is transforming sanitation with a waterless, plumbing-free toilet that uses patented membrane technology to evaporate moisture, reducing waste volume while eliminating odors. With two pilot programs already in place, this innovation is poised to disrupt portable restrooms, disaster relief sanitation, military applications, and off-grid living. The potential market spans both developed and developing nations, offering a sustainable and scalable solution to global sanitation challenges.