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HOME FORECLOSURES ON THE RISE P. 4 Bannon backs Grimm’s future P. 7 HIVES OF ACTIVITY AT JAVITS CENTER P. 39
VOL. XXXIII, NO. 41 WWW.CRAINSNEWYORK.COM
NEWSPAPER
P001_CN_20171009.indd 1 10/6/17 6:44 PM OCTOBER 9 - 15, 2017 CRAINSNEW YORK BUSINESS
FROM THE NEWSROOM | JEREMY SMERD | EDITOR IN THIS ISSUE
Making an impact 4 IN CASE YOU MISSED IT 5 HEALTH CARE IF YOU WERE IN TIMES SQUARE last Wednesday a ernoon, 6 ASKED & ANSWERED you might have seen the jumbotron ash a shout-out to this Film boom in 7 POLITICS China boosts year’s Fast 50 list. Our photographer, Buck Ennis, captured New York the moment for this week’s cover. 8 ENTERTAINMENT Companies pay an arm and a leg to get in front of the 9 VIEWPOINTS nearly half a million people who pass through Times FEATURES Square daily. But we just called up New Tradition, a scrappy 11 FAST 50 media rm that is 46th on our annual list of the fastest- growing companies in the metropolitan area. New Tradition owns rights to sell ads in Times Square, one reason why its revenue has gone up 375% in the past three years. Pretty much every ere’s no shortage of advertising rms on our list this company on our list year, but most are ad tech companies that have found “ furious growth helping Madison Avenue connect with is trying in one way P. DR. EDWARD A. ALVAREZ consumers online. No surprise there. Ad tech has domi- or another to harness 36 36 GOTHAM GIGS nated the rankings for the past few years. the internet’s Although New Tradition’s name harkens back to a pre- 37 SNAPS digital past, its brick-and-billboard business necessarily powerful current 38 FOR THE RECORD competes with the internet. And what better way to do 39 PHOTO FINISH that than with the biggest screen of all? Pretty much every Fast 50 company is trying in one way or another to harness CORRECTIONS Lawyers from Skadden Arps Slate Meagher & digital’s powerful current. ere was a strong showing this year by e-commerce Flom and Af liates also practice in health care and companies including No. 2 Boxed, No. 3 Try the World and No. 6 MM.LaFleur, labor/employment. These industries were omitted to name three of the dozen companies on the list that primarily sell goods online. from The List, published Oct. 2. eir success comes as the traditional retail industry has imploded. In 2012 State Sen. George Latimer does not plan to raise department stores slashed 200,000 jobs nationally, according to the Federal Reserve taxes. His position on the issue was misstated in the article “Why a Trump fan may lose his seat,” Bank of New York. Since 2013 they have cut 80,000 more jobs. E-commerce com- published Oct. 2. panies, meanwhile, have added roughly 100,000. Suri Kasirer is president of her eponymous lobbying Our Fast 50 e-commerce companies are competing, and sometimes partnering, and consulting rm. The type of rm was mis- with the dominant players, Amazon and Walmart, and doing so in New York, a stated in Snaps, published Oct. 2. high-cost locale. (It helps that some have operations in New Jersey and on Long Island—one reason we consider the entire metro area.) ese companies are winning because they can produce more with fewer work- ers than most brick-and-mortar operations. e 16,428 employees at our Fast 50 companies (a third of whom are in the city) generated about $4.5 billion in revenue last year. at’s nearly $274,000 per employee—far less than at Apple ($1.9 million) but substantially more than at Chipotle ($60,000). If New York can produce more ON THE COVER such jobs than it loses to retail, the economy as a whole and those at the bottom PHOTO: BUCK ENNIS rungs could end up better o.
DIGITAL DISPATCHES CONFERENCE CALLOUT OCT. 23 Go to CrainsNewYork.com NYC SUMMIT: FIXING READ The city’s road MASS TRANSIT map for luring Amazon’s HQ2 is This year’s NYC Summit will feature > taking shape. Local top transportation experts business and political including Elliot Sander, former leaders weigh in as Metropolitan Transportation the Oct. 19 deadline Authority CEO. They will offer looms. insight into how to get our subways and trains moving again. ■ WBAI’s bitter dispute with its landlord has left its broadcast future in a cloud of static. SHERATON TIMES SQUARE ■ These are the City Council races where 8 to 10:30 a.m. Republicans stand a chance. [email protected] ATTEND Go to CrainsNewYork.com/ events for the latest opportunities to Vol. XXXIII, No. 41, Oct. 9, 2017—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for double network with local professionals and issues the weeks of June 26, July 10, July 24, Aug. 7, Aug. 21 and Dec. 19, by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing of ces. Postmaster: Send address learn more about the issues that matter changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Ave., Detroit, MI 48207-2912. to your business. Coming up Oct. 25: our For subscriber service: Call 877-824-9379. Fax 313-446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. 2017 Family Business Summit. (GST No. 13676-0444-RT) ©Entire contents copyright 2017 by Crain Communications Inc. All rights reserved. BLOOMBERG NEWS, BUCK ENNIS
2 | CRAIN’S NEW YORK BUSINESS | OCTOBER 9, 2017
P002_CN_20171009.indd 2 10/6/17 6:21 PM WHAT’S NEW OCTOBER 9, 2017
AGENDADon’t let tribalism and paranoia stop a much-needed project
s if it were not hard enough to build housing in this town, the City Council is threatening to make it harder. Council- man Antonio Reynoso is leading the opposition to a massive residential project in Williamsburg because the applicant has Anot speci ed the number of bedrooms each unit will have—something developers have never had to do for such projects. If you’re thinking there must be more to this story, you’re right. Reyno- so’s Latino constituents have long seen themselves as being squeezed out ROOM FOR ALL: The Brooklyn by Hasidic Jews in a competition for housing in northern Brooklyn. e development developers behind this proposal are Jewish, so the opponents fear the would have more than 1,100 units, project will be tailored to ultrareligious Jews, with large apartments and including 287 accommodations designed for strict Sabbath observers. ey want a guar- with low rents. antee that this will not happen. Such a demand raises more red ags than a military parade in Beijing. determined by consumer demand; Rabsky, a for-pro t developer, has to Let’s start with the precedent the council, which will vote on the project repay lenders and make money while abiding by housing discrimination this month, would set by asking the Jewish-owned Rabsky Group for some- laws. It is not a front group for Hasidic Jews to take over Williamsburg. thing it asks of no other developers. Not only would that subject the city to ird, this vacant plot of land, known as the P zer site, has been un- a lawsuit, but it is also morally wrong. productive since 1989. It would be a shame Second, the development adheres to the The City Council must not set a if squabbling motivated by tribalism and de Blasio administration’s mandatory inclu- paranoia caused it to remain fallow any lon- sionary housing policy, which was approved precedent by supporting ethnicity- ger than necessary. A similar ght over the by the City Council and requires a healthy based opposition to housing city-owned portion of the nearby Broad- portion of a development be devoted to way Triangle site has for years blocked con- low-rent units when rezoning allows for struction of a ordable housing—while the more apartments. e mandate established a model that is supposed to market-rate units went up as planned. Other local projects are ethnically obviate disputes about the a ordability of such projects. Rabsky’s would mixed, and there is every reason to believe Rabsky’s would be as well. include 1,146 units, 287 of which would rent for less than market rate and Luckily Councilman Steve Levin, whose district includes the P zer site, be awarded by lottery. Housing lotteries are overseen by the city and give gets all this. We expect most of his colleagues to follow his lead. e others no preference to any race or religion. e variety of market-rate units is should reconsider the message that opposing the project sends. — THE EDITORS
FINE PRINT Gun and ammunition manufacturers’ stock prices rallied after the Oct. 1 mass shooting in Las Vegas, as they typically do in the wake of such atrocities. Normally those gains last. But when Republican members of Congress hinted at banning the sale of bump stocks, which allow semiautomatic weapons to re like machine guns, the shares retreated. Vista Outdoor shed 4% for the week, and Ruger fell 2% off its high.
BY GERALD SCHIFMAN STATS 25 WORDS OR LESS GETTING OUR TAX BACK
NEW YORK STATE is among the biggest recipients of federal spending for the under- privileged. But the state still sends far more money to Washington than it receives. AND THE C
It’s hard to say Federal taxes paid by New York in FEDERAL BENEFITS NEW YORK RECEIVES, COMPARED WITH THE “ scal year 2016 that did not return NATIONAL PER-CAPITA AVERAGE whether this is U.S. $360 $41B in the form of federal spending, more U.S. $1,134 N.Y. $589 than twice the 2013 discrepancy and N.Y. $1,777 Uberesque, where the the most of any state +39% CEO is orchestrating +36% ITY
bad behavior, or if Share of federal individual income U.S. $97 U.S. $206 % tax paid in 2016 by New Yorkers, who it’s just a frat party N.Y. $117 N.Y. $250 9.4 make up 6.1% of the U.S. population run amok.” +17% +18%
—Knotel CEO Amol Sarva on Billionaires living in accusations that WeWork has been New York in 2016, second to spying on its of ce-sharing rivals in a 93 California’s 124 Other scheme to poach tenants Education SNAP Medicaid safety net (food stamps)
RABSKY GROUP ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY. SOURCES: State comptroller, Forbes
OCTOBER 9, 2017 | CRAIN’S NEW YORK BUSINESS | 3
P003_CN_20171009.indd 3 10/6/17 6:43 PM AGENDA ICYMI CRAINSNEW YORK BUSINESS Publisher, VP Jill R. Kaplan executive assistant Devin Arroyo, 212.210.0701
EDITORIAL Foreclosures near recession editor Jeremy Smerd managing editor Brendan O’Connor assistant managing editors Erik Engquist, levels. Should we worry? Jeanhee Kim, Robin D. Schatz copy desk chief Telisha Bryan EPORTS LAST WEEK that the number of home art director Carolyn McClain foreclosures in New York City had returned to lev- photographer Buck Ennis senior reporters Joe Anuta, Aaron Elstein, els last seen at the onset of the Great Recession le Matthew Flamm, Daniel Geiger R reporters Jonathan LaMantia, Caroline Lewis many housing experts scratching their heads. data reporter Gerald Schifman Economic indicators suggest the opposite should be hap- web producer Peter D’Amato pening. e city’s unemployment rate has been trending columnist Greg David contributors Tom Acitelli, Theresa Agovino, down since 2008 and is now just under 4%. Housing prices Will Bredderman, Erik Ipsen, Cara S. Trager continue to rise, and area banks are lending to homebuyers. ANYONE HOME? Foreclosures may be up, but economic ADVERTISING Federal data show that Ridgewood, Maspeth and Flushing indicators re ect strength in the market. www.crainsnewyork.com/advertise advertising director Irene Bar-Am, savings banks together made $3.5 billion worth of loans for 212.210.0133, [email protected] one- to four-family homes during the second quarter of this year, a 4% increase over last year. Late payments on senior account managers Lauren Black, Zita Doktor, Rob Pierce, such loans, a bellwether for mortgages at risk of fore closure, fell by about 1% over the same time period. Stuart Smilowitz, Debora Stein Even so, data from PropertyShark, using information directly from state Supreme Court documents, showed senior marketing coordinator Charles Fontanilla, 212.210.0145 859 rst-time foreclosure auctions during the third quarter. ose numbers are similar to those seen in 2009, right [email protected] aer the housing market imploded, and have ummoxed local housing experts. But they say not to panic—at least sales coordinator Devin Arroyo, not yet. 212.210.0701, [email protected] ONLINE Several factors are likely contributing to the spike. e biggest might have to do with the state’s practice of general manager handling foreclosures through the courts, resulting in a backlog that can drag out individual cases. Most cases Rosemary Maggiore, 212.210.0237, [email protected] heading to auction now are years old. e number of new foreclosures in the court system is down. “ e intent is CUSTOM CONTENT to protect consumers, but I think the result is that it really has extended the time lines,” said Mike Fratantoni, chief director of custom content economist for the Mortgage Bankers Association. “States like California and Arizona, which were hard hit by the Patty Oppenheimer, 212.210.0711, [email protected] crisis, moved through it more quickly.” custom project manager Danielle Brody, Ironically, legislative changes made to streamline the process are kicking in, allowing the backlog to clear. Also [email protected] EVENTS at play are increases in foreclosures reportedly resulting from reverse mortgages. Banks also might be more moti- www.crainsnewyork.com/events vated to foreclose. With prices up, they might be more eager to get control of a valuable asset. — JOE ANUTA director of conferences & events Courtney Williams, 212.210.0257, [email protected] manager of conferences & events Package deal DATA POINT are the rst to travel with less seating; Adrienne Yee, [email protected] events coordinator Ashlee Schuppius, Parcel, a 24-hour delivery startup in 10 more are to follow by the end this SUBWAY DELAYS COST NYC’S ECON- [email protected] Brooklyn, was snapped up for less than month. e new car con guration could OMY AS MUCH AS $389 MILLION AUDIENCE DEVELOPMENT $10 million by Walmart to help it gain allow for 100 extra riders per train. director of audience & content a foothold in same-day delivery. Parcel, ANNUALLY IN LOST WAGES AND PRO- partnership development Michael O’Connor, founded in 2013, provides that service Insults to injuries 212.210.0738, for Bonobos and Chef’d. DUCTIVITY, THE CITY COMPTROLLER Following a disastrous season, Mets [email protected] SAID. THE MOST-COSTLY LINES ARE manager Terry Collins resigned aer REPRINTS Separation anxiety seven years at the helm. He report- reprint account executive Lauren Melesio, Mayor Bill de Blasio said that by 2020 THE 4, 5, 7, A AND F. edly accepted another position in the 212.210.0707 New Yorkers will not have to sort their organization. Aer taking heat for the PRODUCTION production and pre-press director recyclables. e proposal is intended parade of players who ended up on Simone Pryce to reduce greenhouse gases, as fewer Ge en Hall. Ge en, who donated the disabled list, pitching coach Dan media services manager Nicole Spell
collection trucks would be needed. e $100 million for the right to rename Warthen and head trainer Ray Ramirez SUBSCRIPTION CUSTOMER SERVICE change is part of the city’s e ort to meet Avery Fisher Hall, said it was “shame- also will not return to the bench. www.crainsnewyork.com/subscribe the goals of the Paris climate agreement. ful” that more wealthy New Yorkers did — CHRIS KOBIELLA [email protected] not donate to the project. 877.824.9379 (in the U.S. and Canada). Re-entering the ring $3.00 a copy for the print edition; or $99.95 Going Hollywood one year, $179.95 two years, for print Gawker.com, which has been dormant subscriptions with digital access. and considered toxic in the year since Time Inc.’s Entertainment Weekly is to contact the newsroom: sister sites Deadspin and Jezebel were relocating its headquarters to Los Ange- www.crainsnewyork.com/staff snapped up by Univision, is being sold les in March. e move is an attempt to 685 Third Ave., New York, NY 10017-4024 by its bankruptcy estate. Parent Gawker get closer to the industry that it covers. phone: 212.210.0100; fax: 212.210.0799 Media led for bankruptcy in the wake e company said it does not know Entire contents ©copyright 2017 of former wrestler Hulk Hogan’s $140 how many of the magazine’s 66 New Crain Communications Inc. All rights million lawsuit victory over a sex tape. York sta members will head west. reserved. ©CityBusiness is a registered trademark of MCP Inc., used under license agreement. Your money’s no good here Share offering CRAIN COMMUNICATIONS INC Shake Shack’s next city outpost, on Airbnb has partnered with New York– chairman Keith E. Crain Astor Place, will be a cashless endeavor. based WeWork to o er business cus- vice chairman Mary Kay Crain In memoriam Patrons will place orders through their tomers of the online lodging provider president K.C. Crain cellphone or a digital kiosk—which will o ce space at the WeWork nearest to S.I. Newhouse Jr., co-owner of senior executive vice president Chris Crain go directly to the kitchen. Texts will their rental. No launch date for the ser- Advance Publications, died Oct. 1 secretary Lexie Crain Armstrong at age 89. He came to fame helm- editor-in-chief emeritus Rance Crain alert guests when their food is ready. vice has been announced. chief nancial of cer Robert Recchia ing Condé Nast starting in 1975. Orchestral maneuvers in the dark Longstanding solution? Condé Nast’s stable of magazines founder G.D. Crain Jr. [1885-1973] chairman Mrs. G.D. Crain Jr. [1911-1996] e New York Philharmonic and Lin- An MTA solution to subway over- includes Glamour, GQ, The New coln Center said they would scale back crowding is to t more people on cars Yorker, Vanity Fair and Vogue.
AP IMAGES, NEWSCOM a $500 million plan to renovate David by removing some seats. Two E trains
4 | CRAIN’S NEW YORK BUSINESS | OCTOBER 9, 2017
P004_CN_20171009.indd 4 10/6/17 6:47 PM AGENDA HEALTH CARE
City to sue state over missing hospital funds Health system says it is owed $380 million BY JONATHAN LAMANTIA
he de Blasio each month, interim lost positions across our Brezeno wrote. “But positions to close a pro- system had 13 days of administra- CEO Stanley Brezeno system will have conse- this budget cut leaves us jected $1.8 billion bud- cash on hand. tion plans to wrote in a letter to quences for patients, for with no choice.” get de cit by scal 2020. e issue could be sue the state employees last week. a number of services and e system already It cut 396 management resolved if Congress Tfor $380 million it says “I recognize that an for continuity of care, was in austerity mode, jobs in June. Brezeno passes a proposal to delay ■ NYC Health and Hospi- even larger number of and I deeply regret this,” lling justT:7.625 50% in of open said on Oct. 6 that the the cuts by one year. tals is owed for treating Medicaid and uninsured patients. e money is part of the federal Dispropor- tionate Share Hospital program, which covers the facilities’ losses for delivering uncompen- sated care. It is funded by federal and local gov- ernments and adminis- tered by the state. Gov. Andrew Cuomo There’s a place hasn’t distributed funds from the previous fed- eral scal year, which for high drama ... ended Sept. 30, because of a long-planned re- duction in federal just not in your government reimburse- ments that took e ect Oct. 1. New York hos- health plan. pitals stand to lose $1.1 billion during the next 18 months. “ e governor is sit- ting on money required by law to be spent to support New York City hospitals, jeopardizing
their well-being and the T:9.875 in well-being of 1 million New Yorkers who rely on those services,” a city spokeswoman said. Cuomo said last week that the state will not divvy up what is Broadway’s known for making a scene. owed to all the public But when it comes to health plans, hospitals statewide until it gures out how to do you can do without the theatrics. so equitably. e state is facing a $4 billion bud- With our 30-year track record serving New York businesses and our get de cit for 2018. 96% member service satisfaction1 rating, Oxford2 continues to He said a special ses- bring a steady presence and strong commitment to the New York market. sion might be needed to And now, New York employers can find savings opportunities on many allocate the shortfall. Other local hospi- Oxford plans, with some of the most competitive rates in the market tals a ected by the cuts available through our Metro Network products. include Stony Brook University Hospital and Tell drama to take its final bow — make Oxford the health plan you count on. SUNY Downstate, West- chester and Nassau Uni- versity medical centers. Visit uhc.com/OxfordStability or call your broker. Ask about our networks: “We’re paying none of them because we Freedom Liberty Metro can’t pay all of them,” the governor said. e shortfall means 1 UnitedHealthcare Service Statistics average for New York, New Jersey and Connecticut Oxford plan members from Jan. 1, 2016, through Dec. 31, 2016, Health and Hospitals based upon United Experience Surveys. Source: Internal Consumer and Customer Call Center Metrics. will ll just 25% of the 2 Oxford HMO products are underwritten by Oxford Health Plans (NY), Inc. Oxford insurance products are underwritten by Oxford Health Insurance, Inc. 250 to 300 jobs that typ- MT-1139929.0 8/17 ©2017 Oxford Health Plans LLC. All rights reserved. 17-4569 NY-17-444 ically become available
UEI170020_DownstateNY_Crains_7.625x9.875_FINAL.indd 1 9/28/17 2:37 PM OCTOBER 9, 2017 | CRAIN’S NEW YORK BUSINESS | 5
Client Alts Internal & External Team Project Details Color Dimensions Date: 9-28-2017 2:37 PM Depot #: None Cyan, Magenta, Flat: 7.625 in x 9.875 in Creative Prod. Mgr: None Name: E+I Downstate NY–Crain’s Business NY Yellow, Black Folded: N/A P005_CN_20171009.indd 5 Job Number: UEI1700020 Stage: FINAL Reading Level: None Software: CC 2017 10/6/17 5:23 PM 2 File Name: UEI170020_DownstateNY_ Notes: Crains_7.625x9.875_FINAL.indd None AGENDA ASKED & ANSWERED FOOD INTERVIEW BY CARA EISENPRESS
LEE BRIAN SCHRAGER NEW YORK CITY WINE & FOOD FESTIVAL
he New York City Wine & Food Festival will welcome Our tickets more than 350 participating chefs and 50,000 aren’t cheap, and guests Oct. 12 to 15, making it the largest extrav- “ we have to make aganza on the local food scene. Events range from everyone happy: Tcozy dinners at the city’s top restaurants to trade shows and celebrity chef–hosted signature parties at Piers 92 and 94. chefs, sponsors The force behind the feasting is Lee Brian Schrager, a senior and consumers vice president at Southern Glazer’s Wine & Spirits, who started the festival in Miami in 2002 and launched a New York version in 2008. The net proceeds will be donated to two hunger- focused charities: the Food Bank for New York City and No Kid Hungry.
What are festivalgoers in 2017 looking for? They want access, to touch the talent—not one or two or three big names but dozens. We have a more educated consumer than in South Beach 17 years ago. They want to go to events where they get value. We have pop culture talent, like from the Cooking Channel, and chefs with Michelin stars, like Michael White and Alain Ducasse.
How do they “touch” the talent? They can experience being in the room with them—watching the ensemble of Chopped at the Smorgasburg event or Rachael Ray at the Burger Bash. Some people don’t want to attend the events at the rooftop at Pier 92; they want intimate dinners. We always try to bring the chefs out at the beginning and near the end [of meals]. Sometimes, if the chefs want, each dish is introduced. Some chefs can be shy, but the majority will walk around, take photos or sign books once their course is served. DOSSIER What’s your pitch to busy chefs to donate their time and energy? It’s an invitation, not a pitch. People want to participate—we’re WHO HE IS Founder and raising funds and awareness for two great organizations. We don’t director, New York City Wine & want anyone to be involved who doesn’t want to be. Bobby Flay Food Festival had a commitment this year. We love Bobby. We just hope he’s BUDGET Nearly $7 million, much coming back next year. of which is donated by dozens of corporate sponsors How many people does it take to plan such an ambitious festival? SALARY None from the festival We have a full-time staff of 10 at the New York of ce who deal AGE 58 with marketing, accounting, PR and ticketing. As we gear up, we BORN Massapequa, Long Island add hundreds of event and sponsorship managers and thousands of volunteers. RESIDES Upper West Side and Miami EDUCATION Associate of occupational What’s the biggest pitfall in organizing an event like this? studies, The Culinary Institute of America It’s important not to overpromise. These are events with thou- SHARING THE LOVE Chef Emeril sands of people. We have lines. You just need them to be orga- Lagasse’s cooking demo at the festival fell nized and move quickly. People want a selection to choose from. on his birthday last year. Schrager brought They want to be entertained. Our tickets aren’t cheap [they range a cake onto the stage and led the crowd in singing “Happy Birthday.” from $95 for demos up to $783 for an events package], and we have to make everyone happy: chefs, sponsors and consumers. FAVORITE DISH Schrager has always loved fried chicken, which he orders every How do you organize a line so it moves quickly? time he sees it on a menu. As a teen- ager, he and his friends were Think of it the way they keep security lines moving at the airport asked not to return to their or Disney World. We also encourage chefs to plan ahead and do local Howard Johnson’s— as much prep work as possible before getting on-site—and to they had surpassed the keep their dishes on the simple side. per-person limit at its all- you-can-eat fried chicken buffet.
How much do you raise for the charities? BUCK ENNIS We have almost always returned at least a million dollars . Our tagline is: “Eat, drink and end hunger.” ■
6 | CRAIN’S NEW YORK BUSINESS | OCTOBER 9, 2017
P006_CN_20171009.indd 6 10/6/17 5:25 PM AGENDA
Grimm outlook gets Breit-er Tax warrants and a felony plague GOP candidate, but Steve Bannon could help BY WILL BREDDERMAN AND ERIK ENGQUIST
ack on the campaign trail a er serving sev- en months in prison and reimbursing vic- tims, Michael Grimm says he has paid his debt to society. BNot quite, according to New York state tax records. Grimm is bidding to recapture the U.S. House seat he abandoned in 2015 because of felony tax-evasion charges related to Healthalicious, an Upper East Side restaurant he sold a year before his 2010 election to Congress. Records show his limited liability company, Granny Sayz, has seven outstanding tax warrants from 2011 to late 2016, totaling $945,000. A Grimm campaign spokesman, Michael Caputo, insisted the state liens in 2011 and 2012 are in error. He said the warrants from 2016 for $442,000 and $445,000 are duplicative and connected to the federal case. “It’s all very confusing, and we believe a lot of it is incorrect. And that’s why it’s being disputed,” Caputo said. “ e federal restitution has been ful lled, and we believe New York state has calculated incorrectly.” e scandal, stem- ming in part from paying workers o the books, and other past misbehavior by Grimm might matter lit- tle to the Donald Trump enthusiasts he is courting in June’s Republican pri- mary against Rep. Daniel MICHAEL GRIMM Donovan, whom the chal- lenger says is not support- ing the president’s agenda. Any doubt about Grimm’s campaign strategy was erased when he was embraced last week by right-wing rebrand Steve Bannon, the Breitbart editor on a mission to oust moderates. Grimm, who served time in a minimum-security federal prison, apologized for the crime at an Oct. 1 rally announcing his bid but maintained he had done nothing more than “hire a handful of delivery boys o the books.” ere was also a $150,000 federal tax lien, which Grimm paid with help from benefactors he re- fused to name, the New York Daily News reported. Grimm insisted he was the victim of a political witch hunt by President Barack Obama and Loretta Lynch, who served as the U.S. attorney for the East- ern District of New York and later as attorney general. His felony notwithstanding, the ex-con assailed the “swamp” of Washington and called Lynch “corrupt.” He lauded Trump as “outstanding” and blasted Don- ovan’s opposition to a failed GOP replacement for the A ordable Care Act. Tacking right and casting Donovan as a Trump-abandoning moderate is likely to resonate far better with GOP primary voters than with the electorate of the entire district, which encompasses all of Staten Island and parts of southern Brooklyn. Because of that, there are fears in Republican circles that a Grimm victory in June would cost the GOP the November 2018 general-election race, in which Don- ovan would be a prohibitive favorite against any of the ve Democrats running. New York City business interests are also worried. Donovan is the city’s lone member of the Republican Party, which is favored to keep control of the House next year, and can advocate for the city’s interests in ways its Democrats cannot. ■
OCTOBER 9, 2017 | CRAIN’S NEW YORK BUSINESS | 7
P007_CN_20171009.indd 7 10/6/17 4:51 PM AGENDA ENTERTAINMENT
New opportunity for NY film industry: China’s booming box office Detective Chinatown 2 sets stage for more of the country’s lms BY MIRIAM KREININ SOUCCAR
he rst Chinese movie to New York City,” Yue said. “Nobody can generate $7.7 billion lm with a unionized crew re-create Times Square anywhere.” this year, an annual- in New York is currently in Yue said now that he has a contract ized growth rate of production—and it may set with the unions, he plans to produce 15.8% over the past Tthe stage for an in ux of other big- more Chinese movies here. His pro- ve years, according budget lms from the country. duction company in China, Gosh to market research Detective Chinatown 2, part of a Pictures, opened a U.S. subsidiary, rm IBISWorld of franchise of action comedies to be shot Gosh Films, which is in talks with a Los Angeles. With in Chinatowns around the world, will number of Chinese movie producers 976 Chinese lms SHOWTIME: A full-cast dance scene was shot in Times Square. be lming in the city until Oct. 15. e looking to lm in the United States. He released in 2017, up rst in the series took place in ailand is also scheduled to speak at seminars from 893 in 2012, and was a blockbuster in China, gross- in China about how to make unionized Chinese productions now account for complex, and some were lmed over- ing $126 million in 2015. productions in the U.S. almost two-thirds of the total movie night. In one scene, a dead body is e movie, which began produc- “For movies with budgets over tickets sold in that nation. found oating in the East River. In tion in August, has lmed at nearly 30 $15 million, it’s cheaper to make the “ e trend of shooting in the U.S. another, a car chase takes place in Chi- high-pro le locations including Grand movies here than in China,” Yue said, is looking to accelerate as Hollywood natown. e biggest scenes are saved Central Terminal, the New York Public because New York’s industry has an and China draw closer together,” said for Times Square. In one, police chase a Library and Times Square. Its studio ecosystem of support businesses, such Stan Rosen, an expert on the Chinese man driving a horse-and-carriage that work is being done at the Broadway as prop houses, that large productions lm industry and director of the East ips over, and he is saved by a motorcy- Stages facility in Glendale, Queens. rely on. He declined to give the budget Asian Studies Center at the University clist. Times Square is also the setting of Shaun Xiang Yue, the movie’s pro- of Detective Chinatown 2 but said it was of Southern California. a dance number at the end of the movie ducer, said he looked at other cities in the biggest he has worked with. Detective Chinatown 2 has close that involved the entire cast and crew. the United States as potential locations to 200 paid actors and more than 100 Even a few pedestrians made unex- but decided that New York o ered China’s growth crew members. To obtain permits, pected cameos. the most iconic sites. ough he has e emergence of China’s movie- scout locations and rent studios, Yue is “ e most dicult place to shoot applied for the state’s 30% tax credit on production industry could be a new working with executive producer Kerry is Times Square,” Yue said. “It’s full of below-the-line costs, he said the credit cash cow for local crews and lm busi- Orent, who has managed productions pedestrians, and people want to get in did not factor into his decision to make nesses if more productions shoot here, made in New York, such as Rescue Me, front of your camera. You can block it the movie in New York. “ e tax credit as Yue predicts. e lm-production Michael Clayton and e Get Down. o , but it’s New York City and people is a bonus; we came here because of industry in China is expected to Many of the location shoots were just do whatever they want.” ■ Soaring ticket prices lure bad actors seeking big profits Entertainment executives expect demand for live shows to grow BY AARON ELSTEIN
icket broker Prestige Enter- University business school. “Anyplace for prime seats. Today theatergoers from a hedge fund manager he met tainment has few peers when there’s money and opportunity, it’ll fork over thousands to see Hamilton. at a charity event, and why the fund it comes to scoring seats draw the good and the bad.” Economists describe the phenom- prepared to o er a $40 million credit to hot concerts and Broad- e most prominent crackdown enon as “cost disease.” Consumers are line so he could buy face-value tickets Tway shows. On any given evening, it involves former WFAN host Craig willing to pay ever-higher sums for and sell them at a markup. Hedge-fund allegedly has had nearly 40% of all Carton. Federal prosecutors last month personal services such as doctor visits, titan Paul Tudor Jones and business- available Hamilton tickets. In 2014 it charged Carton with cooking up a tuition and concert tickets. It’s consid- man Michael Dell allegedly were vic- bought more than 1,000 tickets to a U2 Ponzi scheme that centered on him ered a market failure because perform- tims of a scam by New York concert show at Madison Square Garden—in a buying tickets to popular shows at face ers’ incomes have risen faster than their promoter Joseph Meli involving Ham- single minute. value and selling them at a markup. e productivity. Still, the malady creates ilton tickets, according to Bloomberg How does Prestige do it? Accord- feds say he used the cash he raised to an opportunity for investors who see News. And a former city schoolteacher ing to the New York attorney general’s pay o gambling debts rather than buy in tickets the kind of returns normally charged with running a $70 million oce, it uses computer programs— tickets. Carton has pleaded not guilty. found in stocks and real estate. Ponzi scheme also involving Hamilton bots—to leapfrog ahead of others e ticket business might be about Better, in fact. tickets is said to have raised $40 million queuing up for seats. Prestige in May as old as show biz, but it didn’t attract from an unnamed private-equity rm. agreed to pay $3.35 million to settle a much attention until prices began A new asset class “Tickets have become what Wall probe into illegal ticket-buying, and soaring in the mid-1990s, when the Beyoncé was the nation’s top-gross- Street calls an asset class,” Sabino said. last week the rm was sued by Ticket- Eagles reunited and charged $100 ing performer last year, raking in James Dolan, CEO of the Madi- master, which said Prestige violated its for a concert. at seemed like an $169 million in revenue as fans son Square Garden Co., sees demand agreement with the attorney general astronomical sum at a time when the coughed up an average of about $124 for live events growing. He owns the by continuing to buy tickets with bots. average concert ticket cost about $25, per ticket, according to Pollstar data. Knicks and Rangers, just bought a It’s a sign of the times. Years of soar- according to Pollstar. But other bands e top-grossing act in 2004, Prince, nightclub company and is planning to ing prices for top concerts, shows and and promoters took note when the charged an average of $61. Tickets open a live-music venue in Las Vegas sporting events have attracted a slew Eagles had no trouble lling seats. A have risen at a higher rate than the to add to the company’s roster. He sold of bad actors—some backed with Wall handful of Broadway shows increased stock market (which gained 97% over Cablevision and is looking to unload Street money—to the ticket business. ticket prices as the rise of online that time) and even Manhattan real MSG Networks. Now law enforcement authorities are resellers made it clear just how much estate (the median sale price for an “ e experience of being at the trying to drive out the worst players. people would pay. But nothing really apartment rose 96%). Such outsize event live,” Dolan said at a confer- “Like ies to honey,” said Anthony stuck until 2001, when the producers returns might help explain why Carton ence this year, “I don’t see that being
JOJO WHILDEN/DETECTIVE CHINATOWN 2 JOJO WHILDEN/DETECTIVE CHINATOWN Sabino, a law professor at the St. John’s of e Producers started charging $480 was allegedly able to raise $10 million diminished.” ■
8 | CRAIN’S NEW YORK BUSINESS | OCTOBER 9, 2017
P008_CN_20171009.indd 8 10/6/17 4:41 PM AGENDA VIEWPOINTS
Could the city bear the cost of 50,000 Amazon jobs? You bet Predictions of an adverse impact ignore the immensity of New York
TWO WEEKS AGO I wrote additional burden?” he asked. year was 5.7 million. If the ratio of jobs The retail giant’s that New York City So, 50,000 jobs, $1 billion in tax to subway trips stays the same as Ama- might have to o er breaks, 24 million subway trips. e zon sta s up, we would get about 70,000 technology workers tax breaks and other numbers seem huge. For the most part, more workday subway trips, about a would further diversify incentives worth as they are not. 1% increase. Gov. Andrew Cuomo’s much as $1 billion if Let’s start with the 50,000 jobs that new subway cars with accordion-style the city’s economy it wants to compete Amazon says will have an average sal- connectors and wider doors will arrive for Amazon’s second ary of $100,000. e increase in city before most of the Amazon workers do and put Wall Street GREG DAVID headquarters and the employment would be only 1% over a and should o er more elbow room even in its place 50,000 or so high-pay- decade. e city absorbed increases of a er absorbing the new passengers. ing jobs it will bring to a lucky city. 3% in 2014 alone and again in 2015. Other numbers show landing Ama- A sta er for one of the e odds of a recession before zon would make New York a better place. $100,000. Amazon would be another borough presidents not only Amazon adds all those posi- For decades policymakers’ primary goal major step in boosting tech and putting thought it would be absurd to % tions are something like 100%, for the city’s economy has been to reduce Wall Street in its appropriate place. o er such a large subsidy but so if those jobs materialize, its dependence on Wall Street, whose Whether those Amazon jobs are also suggested that I hadn’t 1GAIN IN they could come just when cyclical swings can be devastating. It is worth the cost in tax breaks is an issue considered all the other public NYC jobs if New York needs them. nally happening in the Bloomberg–de on which reasonable people can dif- expenses that landing Ama- Amazon comes By the way, even if all those Blasio boom, mostly because of growth fer. But it is just fallacious to suggest zon could entail. He emailed employees moved here from in tech-related industries. Wall Street that New York doesn’t have the capac- me a formula: [50,000 people] elsewhere, which is unlikely, accounted for just 6% of new high- ity to absorb those jobs or that the city x [2 trips per day] x [20 workdays per the population increase would be 0.5% paying jobs in this expansion, compared wouldn’t be better o if the company month] x [12 months] = 24 million at a time when population growth is with a quarter between 1990 and 2007, were here. ■ new trips just for commuting. “How slowing. according to the state comptroller. Tech, much will it cost the Metropolitan Let’s tackle the subway issue. e advertising and media contributed GREG DAVID blogs regularly at Transportation Authority to handle the average weekday subway ridership last almost 50% of jobs paying more than CrainsNewYork.com.
The wheels on the bus barely move. Let’s fix that Technology is in place to turn slowpokes into speed merchants BY MARK LEVINE
ew York City’s “summer of dollars, not billions. hell” will be remembered for And unlike the subway system, the subway system’s delays, which is entirely run by the Metro- overcrowding and derail- politan Transportation Authority, Nments. But there’s another transit crisis major pieces of bus infrastructure are that has been playing out in slow mo- controlled by the city: street design, tion (literally), and it involves the buses. boarding areas, trac lights and more. As beleaguered straphangers look Working in concert with the MTA, the for alternatives, the 2.5 million New Department of Transportation could Yorkers who already rely on buses are create dedicated bus lanes backed up SEEING RED: All buses su ering slower speeds and longer by real enforcement, implement a fast- should be able to shorten travel times. On dozens of routes, bus- er payment system, allow for all-door waits at intersections. es now move at less than the pace of boarding and manage bus spacing to walking. Reliability is a growing prob- prevent bunching. lem as well, as anyone who has waited Just last month a new Select Bus infrastructure to try out a system in introduced legislation in the City Coun- interminably—only to have three buses Service route was christened as part of which buses communicate with trac cil to require that 20 lines be upgraded nally show up at once—knows. Not the city’s SBS expansion. While we wait signals to keep lights green until the each year for Transit Signal Priority, as surprisingly, bus ridership is down 16% for more of these high-tech routes, a buses pass and shorten red lights when recommended by the Bus Turnaround since 2002, even as the city’s population relatively simple solution is begging for they are waiting. Coalition, an advocacy group. has grown to record levels. a rapid rollout: technology that speeds Transit Signal Priority is now run- New Yorkers have a right to a reli- Many who no longer take buses are buses through trac lights. ning on the M15, B44, S79, Bx41 and able transit system. We need this kind instead using private cars or taxis. is On congested routes, city buses B46 lines, and it shaves an average of of bold action to save our bus system only adds to congestion, making buses spend 21% of their time at red lights. 18% o travel times. With the hard- from the vicious cycle of slower speeds even slower, in turn pushing more peo- e Transit Signal Priority system ware already in place, the cost is just and falling ridership. Anything less ple into cars. It’s a downward spiral. could reduce that using technology al- $1 million to $2 million per line, main- risks the “summer of hell” becoming a We urgently need to address this cri- ready in place. ly covering so ware upgrades and sta year-round phenomenon. ■ sis. e good news is that xes for our Every MTA bus is equipped with planning time. bus system are faster, easier and cheap- GPS, advanced signal controllers are e DOT plans to extend signal con- Mark Levine, a Democrat, is a City er than the solutions being weighed installed at all intersections, and the trol to an additional 15 lines by the end Council member representing parts for the subway. Signi cant improve- city has a secure wireless network serv- of 2020. In a sprawling system of 238 of the Upper West Side, Morningside ments to bus speed and reliability can ing agencies including the NYPD and routes, that’s not enough. To dramatical- Heights, Harlem and Washington
BUCK ENNIS be achieved at costs in the millions of the FDNY. e DOT has tapped this ly accelerate installation citywide, I’ve Heights.
OCTOBER 9, 2017 | CRAIN’S NEW YORK BUSINESS | 9 CN018384.indd 1 10/3/17 3:45 PM P011_CN_20171009.indd 11
BUCK ENNIS AYNI BRIGADE MACK WELDON MACK GROUP KEPLER BIONIC SOLUTION FOOD52 EXUSIA LUXE DE EAU DIGITAL OCEAN DASHBID CONTENTLY CEMTREX BOYCE TECHNOLOGIES BOXED CLOUD BETTER AXTRIA MASTERMIND AUTOMOTIVE KARGO SCIENCE AD INTEGRAL GROUNDTRUTH FANDUEL EYEVIEW BOMBFELL BLUE APRON ADTHEORENT ADORE ME ADORE COMPANY INDEX ------28 23 23 29 29 30 30 30 32 32 13 12 26 24 26 27 27 27 21 21 14 14 14 16 16 PROLIFIC INTERACTIVE PROLIFIC POPPIN PHARMAPACKS SHOPKEEP DERMATOLOGYSCHWEIGER GROUP S’WELL PUREWOW PELOTON PADSQUAD OSCAR ONDECK CAPITAL OMNIBUILD NEW TRADITION INK MOVABLE MM.LAFLEUR ZEEL YIELDBOT &CO WORK WEWORK VISTAR MEDIA TRY THE WORLD TRUVERIS TRIPLELIFT TICKPICK TAL DEPOT ------28 28 23 29 30 22 22 22 22 32 32 12 13 26 24 26 24 21 21 31 14 16 16 17 17 T boast about. year 2016, calendar and respectively. asof are counts employee and ability year 2016scal publicity-shy. were companies, held that companies for blanks inthe lled a PrivCo, and ments, privately of provider nancial-data companies’ the review us helped Anchin nancial docu- Accounting rate. growth three-year and Block Anchin, rm their by $10 them at least ranked and inrevenue million As you will see, these nimble companies have much to to have much companies nimble these see, will you As Pro revenue. actual on based is rate growth Each t- digging up the rest. We at looked rest. upthe digging with rms reporters intrepid our with applicants, by us through combed to sent were that nancials we area, metro inthe companies growing 50 the of list annual at our o arrive fastest- OCTOBER 9,2017 |
C RAIN’S NEWYORKBUSINESS |
11 10/5/17 7:38 PM 2 BOXED Sells bulk items at discounted prices that are shipped to businesses and consumers LOCATION SoHo 2013 REVENUE $40,000 2016 REVENUE $100 million* GROWTH RATE 249,900% PROFITABLE? Not disclosed LOCAL EMPLOYEES 150 TOTAL EMPLOYEES 250
HOW IT GREW A onetime corporate lawyer who co-founded—and sold—a mobile gaming company, Chieh Huang (above) was going back to his roots when he launched Boxed in 2013. e e-commerce site sells bulk items
STRATOSPHERIC GROWTH: Foley has Pedaled Peloton to the IT’S A SMALL WORLD top of our list. Co-CEOs Vorotova and Foult bring foreign treats to one on demand. But Peloton has broad ambitions. domestic doorsteps. 1 PELOTON “We see ourselves as a disruptive technology com- pany at the nexus of tness, technology and media,” Manufactures a stationary bicycle Foley said. “We are already one of the leaders in the and sells subscriptions to live and category, but we are just getting started.” archived cycling classes that are Peloton has more than doubled its number of streamed to a 22-inch tablet showrooms around the country to 24 over the past year, and in January it struck a deal to put LOCATION Chelsea bikes in Westin hotels. e biggest recent news, 2013 REVENUE $1,528 2016 REVENUE $137.5 million however, was the company’s $325 million fund- GROWTH RATE 8,997,716% ing round, announced in May, which valued it PROFITABLE? No at $1.25 billion. at investment is going toward LOCAL EMPLOYEES 224 a big increase in so ware and engineering sta , TOTAL EMPLOYEES 334 more showrooms, additional studios for the live- streamed classes—and ventures that Foley will HOW IT GREW Peloton has ridden two trends—the only hint at. “ e three biggest things for next year growth of streaming video and the boom in exercise are category expansion, geographic expansion and classes—to No. 1 on the Fast 50 list for the second getting the word out on Peloton, because aware- year in a row. Founded in 2012 by John Foley (above), ness is still pretty low,” he said. So in the future, it an industrial engineer turned e-commerce executive, won’t all be about the bike. ere will be “di erent the company lets people busy with their family and products and di erent platforms,” he added, as career get in a group workout on its stationary bike, well as programming in di erent languages as
BUCK ENNIS, JONAH ROSENBERG whether by streaming a studio class live or watching Peloton expands overseas. — MATTHEW FLAMM
12 | CRAIN’S NEW YORK BUSINESS | OCTOBER 9, 2017
P012_P014_CN_20171009.indd 12 10/5/17 8:08 PM AUTOMOTIVE- MASTERMIND 4 Provides car dealers with a data-analytics tool that helps predict which customers are most likely to make a purchase LOCATION Midtown South 2013 REVENUE $130,518 2016 REVENUE $23.2 million GROWTH RATE 17,675% PROFITABLE? Yes LOCAL EMPLOYEES 55 TOTAL EMPLOYEES 102
HOW IT GREW Running the Mercedes-Benz Man- hattan showroom, Marco Schnabl got to know tech and banking executives who helped him think about how predictive analytics—which Net ix uses to suggest movies to subscribers— might be applied to car sales. By 2012 Schnabl and one of his sales reps, Johannes Gnauck, decided to build a platform that would collect data on thousands of customers’ buying histories SUPPLIES WITH A and produce a “behavior prediction score” for CONSCIENCE: CEO each. e German expatriates launched Auto- Huang in his Union, N.J., motiveMastermind with Mercedes as its rst ful llment center subscriber and gradually built relationships with more than a dozen manufacturers including BMW and Lexus. It recently added all of GM. AutomotiveMastermind lets dealerships focus at discount prices, making it a digital descendant turning to the site for employee snacks, toilet their sales e orts, improving the retention rate of the Price Club, where his struggling Taiwanese paper and o ce supplies. for existing customers and attracting new ones. immigrant parents looked for bargains a er settling “Our marketing has always centered around e platform’s core competency is marketing to a in suburban New Jersey in 1989. consumers,” Huang said. “But some of those dealership’s previous buyers as well as customers Boxed is more millennial-focused than tradi- consumers happen to be o ce managers.” who purchased elsewhere but come in for service. tional wholesale clubs; it doesn’t charge a member- e brand also appeals to the socially e company has been investing in social-media ship fee and was designed for mobile shopping. But conscious: Huang has been marking down analytics and plans to release a product next year Huang credits the company’s focus on wholesale female-speci c models of items, including that predicts the behavior of consumers without deals for its rapid growth: e site o ers just 1,600 razors and deodorants, to counter the so-called a connection to the dealership. items—including its own line of products such pink tax that makes them more expensive than Schnabl noted that the industry is in the as toilet paper, co ee, trash bags and batteries—a similar products for men. And he’s reduced the midst of historic change as consumers face new pittance compared with the nearly 500 million prices of tampons and sanitary pads to o set options including ride sharing, electric vehicles products sold by Amazon. taxes applied to them as “luxury” items. and self-driving cars. He expects Automotive- “We have no qualms about not being the ‘every- “Consumers care about how they’re spending Mastermind to help dealers gure out the best thing store,’ ” Huang said. “We’re for folks who just their money in a di erent way than my parents choices for customers. “We are well-positioned,” want to stock up and save.” or grandparents did,” Huang said. “Doing the Schnabl said. So well-positioned that last month Boxed is also for businesses. Mom-and-pops, right thing has become part of our brand.” — M.F. global data giant IHS Markit paid $392 million regional rms and Fortune 500 companies are *Crain’s estimate for a majority stake in the company. — M.F.
Ninety percent of revenue and much of the TRY THE WORLD company’s growth comes from themed subscrip- 3 tion boxes priced from $29 to $39 each. One Imports, retails and distributes packaged month all seven or eight products in the box could foods from all over the globe that adventur- hail from France and the next, from Spain. Its ous eaters can’t nd easily in the U.S. rst box of Paris-themed goods, including chest- LOCATION Flatiron District nut spread and macarons, sold out in two days. 2013 REVENUE $55,016 To keep prices low, the Try the World team lls 2016 REVENUE $14 million shipping containers with products from suppli- GROWTH RATE 25,389% ers abroad, whom they meet through countries’ PROFITABLE? Yes chambers of commerce or at trade shows, and LOCAL EMPLOYEES 20 navigates the six-week-long process of transpor- TOTAL EMPLOYEES 20 tation, customs, FDA approval and receiving. Last year Try the World added a lower-priced HOW IT GREW When co-founder Kat Vorotova trav- monthly subscription of ve or six snacks. An eled the world as a strategy consultant, she feasted e-commerce shop peddles individual goodies, on international delicacies such as chocolate pasta and a distribution arm provides Walmart and and deer terrine that she wished were available at Amazon with hard-to- nd global grub. Social home in New York. Her co-founder, David Foult, media and subway ad campaigns, plus part- worked with small foodmakers on a micro nance nerships with brands such as Michelin Guides, project in Vietnam and helped build pop-up have increased Try the World’s reach even more. imported-food stores in Europe. ey decided to e boxes are popular gi items. Most trium- play matchmaker between imported specialty foods phant for the company: a limited-edition $49 and the taste buds of young Americans who love France-Italy- ailand selection o ered with trying treats from around the world—and are will- Condé Nast Traveler that sold 50,000 units in ing to pay up-front for the opportunity. nine minutes. — CARA EISENPRESS
OCTOBER 9, 2017 | CRAIN’S NEW YORK BUSINESS | 13
P012_P014_CN_20171009.indd 13 10/5/17 8:09 PM 7 5 DASHBID BLUE APRON Helps online publishers get the highest Delivers ingredients and proprietary reci- price for video advertisements pes for meals that subscribers cook at home LOCATION Times Square LOCATION Flatiron District 2013 REVENUE $196,997 2013 REVENUE $12 million* BETTER CLOUD 8 2016 REVENUE $25.8 million* 2016 REVENUE $795.4 million GROWTH RATE 12,979% GROWTH RATE 6,528% Helps companies manage and secure PROFITABLE? No PROFITABLE? No cloud applications LOCAL EMPLOYEES 16 LOCAL EMPLOYEES 446 LOCATION Chelsea TOTAL EMPLOYEES 29 TOTAL EMPLOYEES 5,028 2013 REVENUE $248,530 HOW IT GREW Online publishers battling HOW IT GREW From the start, Blue Apron has 2016 REVENUE $12.4 million advertisers have long felt like David taking on targeted edgling home cooks with little time for GROWTH RATE 4,905% Goliath—only without a slingshot. Most invest- grocery shopping. e company o ers a two- PROFITABLE? No ment in digital advertising has been geared person subscription ($59.94 a week) and a family LOCAL EMPLOYEES 51 toward ad buyers. DashBid has helped to plan (either $71.92 for two meals or $143.84 for TOTAL EMPLOYEES 132 rectify that imbalance a little, creating so ware four), as well as main courses for vegetarians, meat that allowed for down-to-the-wire ad-space eaters and seafood eaters. Customers have spread HOW IT GREW Founded in 2011, Better Cloud auctions to get publishers the best prices. Since the word, aided by a referral program that lets has grown by being the rst company to help a turnaround at the rm in 2013, growth has superfans give free boxes to friends, the sharing of businesses manage and boost the security of been driven by so ware for mobile devices and thousands of Instagram posts captioned “I made their cloud applications such as Gmail and “aggressively addressing the issues of fraud that that!” and rapid nationwide expansion. Although Google Drive. e company’s platform now have plagued the digital advertising ecosystem,” meal kits make up 99% of the company’s net covers Slack, Dropbox, Zendesk, Salesforce said Rodger Wells, who was elevated from chief revenue, its e-commerce shop sells both a wine and other so ware-as-a-service applications. revenue o cer to CEO late last year. — KIM VELSEY subscription and cooking equipment. During the Serving thousands of customers and *Unaudited last quarter of 2016, Blue Apron sent boxes to operating in 40 countries, the company still 879,000 paying customers. e company’s mar- spends more on R&D to re ne its complex keting team, however, spent $144.1 million last technology than on sales and marketing. year, more than double the $51.4 million laid out It has raised nearly $47 million in venture- for ads in 2015. e company went public June capital funding, including $25 million in 29. As of Oct. 2 its stock had fallen 46% from its 2015. “We now feel we can step on the gas,” MM.LAFLEUR opening IPO of $10 per share. — C.E. said CEO David Politis. — JUDITH MESSINA 6 *Crain’s estimate Sells versatile clothing for professional women LOCATION Lower Manhattan 2013 REVENUE $336,385 2016 REVENUE $22.5 million GROWTH RATE 6,589% PROFITABLE? No LOCAL EMPLOYEES 150 TOTAL EMPLOYEES 160
HOW IT GREW e Bento Box, MM.LaFleur’s signature item, was introduced a year and a half a er the company opened in 2013. Today that curated collection of four to six pieces helps reel in rst-time shoppers: 80% of customers start with one. “Our customers are women who do not delight in shopping for work clothes,” said CMO Annie orp. Because Bento buyers aren’t charged unless they keep the $110 to $325 tops, skirts, dresses and jackets—chosen based on their answers to a survey—it’s a low-risk introduction to the brand that keeps women coming back. While the bulk of its sales are online, MM.LaFleur has opened New York and Washington, D.C., showrooms and pop-ups in more than a dozen cities, where shoppers can meet with stylists. “We’re SARAH LAFLEUR, driving growth MM.LaFleur founder through organic and CEO relationships with our customers,” said o r p . — ELLEN STARK BUCK ENNIS, COURTESY OF BLUE APRON
14 | CRAIN’S NEW YORK BUSINESS | OCTOBEROC 9, 2017
P012_P014_CN_20171009.indd 14 10/5/17 7:52 PM Treat your coworkers to an interactive venue for the holiday party
he annual holiday party is the perfect at holiday events, when you really want attendees to job. According to the American Institute of Stress, a quar- opportunity not only to reflect on the bond and have a great time. ter of workers view their job as the number one stressor in their lives, and 40% of workers see their job as very or year that’s passed and prepare for the extremely stressful. You want everyone to get their minds T Crain’s: How does the element of fun at a party year ahead, but also to have a good time with or event boost company morale, and perhaps even off work so they can truly enjoy their time with colleagues affect the bottom line? and feel refreshed when they go back to the office. A coworkers to boost morale. Why not do some- competitive bowling game with team shirts, prizes, music thing exciting that will keep them talking for and décor can do the trick. Nikki Lazar: Holiday parties only last a few hours, the next year? but the bonding experience definitely translates when employees are back at the office. If the event is a success, Crain’s: What are some of the most creative uses The best holiday parties make attendees feel valued for attendees will be sharing stories and laughing about of an interactive space that you’ve seen? their hard work, something which has been proven to be memorable moments weeks later, which can in turn foster a sense of community that’s crucial to company success. important and effective. A 2012 survey conducted by the Nikki Lazar: We’ve seen rooms totally transformed, Society for Human Resource Management and Globo- In a 2014 employee engagement survey from TINYPulse, including: a stage made on the lanes for live music, an force found that companies that use strategic recognition a B2B SaaS employee survey product, most employees aerialist hanging from the ceiling of Bowlmor Chelsea Piers, are 48% more likely to report high workplace engage- identified peer-to-peer camaraderie as the number one and even an impromptu catwalk created on the lanes. ment. But too often, instead of offering a holiday party influence on their motivation. Research out of Rutgers that is exciting and fun, many companies stick to the University this year similarly found that employees with Encouraging lots of photos—perhaps by setting up same tired script: booking a private space for a few hours close friends at work are in a good mood more often, a photo booth or creating a hashtag—is also a good of food and libations, then calling it a day or night. which can boost their work performance. Effective idea. These pictures can then be posted in the office for holiday parties can help employees form, or strengthen, attendees to reflect on all year long. To help planners shake things up, Crain’s Custom asked friendships that improve the company bottom line. Nikki Lazar, Director of Group Event Sales at Bowlmor Planning a holiday party at an interactive venue is a win- win. Attendees will feel valued, bond with colleagues and AMF, to share her thoughts on the value of using an inter- Crain’s: How can planners use the venue of their active venue designed around team building and games holiday party as an opportunity for team building? reinforce the values of your company culture. Rather than for the annual holiday party. Lazar specializes in planning dreading an awkward end-of-year event, employees will look forward to it year after year, which can in turn make large corporate events and holiday parties at Bowlmor, Nikki Lazar: Venues that focus on games like bowling which owns and operates more than 300 bowling centers and laser tag make team building easy, since they revolve them happier and more committed to work. nationwide. Having helped countless planners organize around working together to achieve common goals. But it’s memorable interactive events, she knows firsthand how also important to add fun extra touches to optimize bond- With any luck, by the time this year’s event is coming to a important is it to think outside the box. ing. For instance, you can reward the winners (or most cre- close, they’ll already be looking forward to next year’s fun. ative losers) with trophies or custom Lazar’s insights will help you make this year’s holiday pins, to create a friendly competitive party the most memorable one yet. atmosphere. Or you can come up with teams beforehand, then cultivate camaraderie with creative team names and matching shirts.
Team building also provides the per- fect opportunity to emphasize your company values, like integrity and collaboration. If giving back is part of your corporate culture, you can even integrate this into the event by, for instance, rewarding winners or high scorers with company dona- tions to their favorite charities.
Crain’s: Which types of team-building activities are most engaging and effective?
Nikki Lazar: Activities that Nikki Lazar everyone can do are best, so no one Director of Group Event Sales (NYC) feels left out. It’s essential to choose Bowlmor AMF activities that are low-impact, not too strenuous and easy to learn. GET A $20 GIFT CARD FOR Crain’s: Why should event planners consider an interactive venue for their holiday party? Fast-paced games are also effective, EACH GUEST as they keep attendees from losing WHEN YOU BOOK BY 10/31* interest. There are clear psycholog- Nikki Lazar: At a traditional venue, the options are generally limited to eating, drinking, dancing, or con- ical benefits to letting loose and versing with other guests. Especially for more introverted having fun. In his book “Play: How It ’TIS THE SEASON FOR AWESOME CELEBRATIONS. attendees, these activities can be more stressful than Shapes the Brain, Opens the Imag- BOWLING | ARCADE | INVENTIVE MENUS & MORE enjoyable—we all know how difficult it can be to keep a ination, and Invigorates the Soul,” BOOK NOW AT BOWLMOR.COM/HOLIDAY conversation going during a three-hour meal, or to dance neuroscientist Dr. Stuart Brown talks with people you don’t spend time with outside of work. about how play can create new neu- ral connections that boost not only productivity, but creativity as well. TIMES SQUARE CHELSEA PIERS Interactive venues even the playing field by inviting (212) 680-0012 (212) 835-2695 everyone to enjoy an activity they already know and love, which in turn makes socializing easy. Creating an atmo- Make sure the activities are not re- sphere where everyone is comfortable is especially ideal lated to your employee’s day-to-day *MENTION CODE GIFTCARD17. TERMS AND CONDITIONS APPLY.
An Advertising Supplement to Crain’s New York Business
Ask_The_Expert_Bowlmor.indd 1 9/29/17 12:18 PM 9 AYNI BRIGADE Pairs a marketing consultancy with a design shop to develop integrated, strategic growth plans LOCATION Midtown 2013 REVENUE $42,500 2016 REVENUE $2 million GROWTH RATE 4,698% PROFITABLE? Yes LOCAL EMPLOYEES 10 TOTAL EMPLOYEES 10
HOW IT GREW Ayni Brigade co-founders Brian Holly eld and Mark and Sherry Russell were looking for a way to combine their expertise in research, strategy, business development and design. e model they launched in 2013 uses market research to help clients maximize growth by repositioning, launching products or expanding into new areas. Once clients sign o on a strategy, a design team follows through with campaigns to execute the plan. CEO Mark Russell said that a key shi for Ayni came when the co-founders decided to partner with media entrepreneur Carol Karpa to create a full-service rm. “We hired folks who were senior people like us,” he said. Another advantage has come from hiring military veterans, who account for 60% of Ayni’s workforce. “Veterans provide us a num- ber of things: superior intelligence gathering, market and human insight, strategic and tacti- cal thinking, and a commitment to executional excellence,” the CEO said. He added that employing veterans helps TRIPLELIFT Ayni ful ll its namesake, which means “rec- 12 iprocity” in the Peruvian language Quechua. Created a computerized advertising “ ey already did for us, so now it’s our turn to exchange that is a real-time bidding do for them,” Russell said. — K.V. platform and lets brands run ads that match the look and feel of thousands of publishers’ websites LOCATION NoHo 2013 REVENUE $1.6 million S’WELL 2016 REVENUE $42.9 million 10 BIONIC SOLUTION GROWTH RATE 2,522% Makes and sells a PROFITABLE? Yes stylish stainless-steel Advises large companies on how LOCAL EMPLOYEES 110 bottle that keeps water to create a corporate culture that TOTAL EMPLOYEES 160 hot or cold and doesn’t 11 fosters fast growth leak or sweat from HOW IT GREW condensation LOCATION Midtown TripleLi ’s so ware 2013 REVENUE $301,500 does real-time anal- LOCATION Flatiron District 2016 REVENUE $10.5 million ysis of clients’ mar- 2013 REVENUE $2.5 million GROWTH RATE 3,391% keting materials, 2016 REVENUE $99.7 million PROFITABLE? Yes automatically com- GROWTH RATE 3,863% LOCAL EMPLOYEES 30 puting where ads PROFITABLE? Yes TOTAL EMPLOYEES 34 should run and how LOCAL EMPLOYEES 78 to make them look TOTAL EMPLOYEES 80 HOW IT GREW Bionic Solution launched four and best in those places. half years ago with just a couple of clients, which e resulting ads HOW IT GREW Founded by a former EY tax the company calls “partners.” e number gradu- are integrated into auditor who cared about matching her water ally doubled to four and recently approached 10. websites’ streams bottle to her day’s out t, S’well has tapped into “We have super partners who go big and deep for of content, place- customers’ desire to avoid single-use plastic a long time,” said CEO David Kidder, who antici- ments with a return bottles—and look good doing it. In the past, pates reaching 50 clients in the next ve years. on investment that’s two to three times CEO Sarah Kauss (above) chose high-end Bionic’s sta is composed of entrepreneurs better than that of much-maligned banner retailers, like Williams-Sonoma and Saks Fi h and startup veterans who use their expertise to ads, said co-founder and CEO Eric Berry Avenue, to sell its products, but last year the help established companies adopt a startup mind- (above). “ e data support what we’re doing,” company added a lower-cost line, S’ip by S’well. set, he said, adding that the clients have watched he said. “Of all advertising, this is the most Revenue more than doubled from 2015 to the Apples and Amazons of the world take moon e ective and least disliked. Consumers like 2016. A 15-ounce S’ip bottle costs around $25, shots that have paid o and are motivated to it better, and advertisers like it better.” e $10 less than a similar-size S’well o ering. e be able to do the same. Bionic Solution has not rm’s clients include publishers looking to company’s other fast-growing departments were had much need for marketing, instead relying populate their sites with ads embedded in bottle customization and corporate sales. — C.E. on word of mouth among executives who have their content. — E.S.
BUCK ENNIS, COURTESY OF S’WELL, BIONIC SOLUTION TRIPLELIFT worked with them. — E.S.
16 | CRAIN’S NEW YORK BUSINESS | OCTOBER 9, 2017
P016_P017_CN_20171009.indd 16 10/5/17 8:19 PM 14 ZEEL 13 WORK & CO. Allows clients to book at-home, spa-quality massages as little as an hour in advance Creates and designs websites, apps, retail kiosks, bots and e-commerce platforms LOCATION Midtown 2013 REVENUE $488,183 for clients such as Apple and Disney 2016 REVENUE $12.7 million LOCATION Dumbo, Brooklyn GROWTH RATE 2,505% 2013 REVENUE $1.5 million PROFITABLE? No 2016 (U.S.) REVENUE $32.7 million LOCAL EMPLOYEES 33 GROWTH RATE 2,064% TOTAL EMPLOYEES 58 PROFITABLE? Yes LOCAL EMPLOYEES 100 HOW IT GREW Zeel launched in 2010 as a marketplace for at-home, on-demand TOTAL EMPLOYEES 192 wellness, o ering services in dozens of categories ranging from hair and make- up to yoga and personal training. But within 18 months, execs noticed that half HOW IT GREW Four-year-old Work & Co. was of the 60,000 bookings were for massages, with most customers wanting them built around design talent, and its unorthodox, within four hours. “We decided to jettison the other verticals and just do mas- structure re ects that. ere’s no CEO. Instead, sage,” said CEO Samer Hamedeh (le ). “When we relaunched, people thought it it has 11 partners, and a third of employees are was magical.” director-level or higher. O ces open where a A er the pivot, Zeel quickly expanded from New York to the Bay Area and partner wants to live (hence a satellite in Port- Los Angeles and now o ers its booking services in more than 70 cities. Even land, Ore., and an outpost in Rio de Janeiro that though customers make appointments through an app, Zeel created a more contributed $3 million not included in the U.S. robust customer service department as it grew. at was not only for clients but revenue gure above). e rm is focused on also for the masseuses, who, Hamedeh said, “want to talk to someone right away web design, leaving social and content strategies if they get lost.” to others. “We say no to projects that don’t t our A key to the company’s growth has been verifying the identity of clients, model,” said co-founder Gene Liebel. All proj- giving the mostly female masseuses a sense of security when going to at-home ects are run by lean teams overseen by a partner, bookings. (Massage therapists are also licensed, insured, interviewed in person eliminating management red tape. Loyal clients and vetted by the company.) In the past few years Zeel updated its platform so power growth: 90% come back for more work. that spas and hotels, including the Wythe Hotel in Williamsburg and Gurney’s “Companies are attracted to talent and working Montauk Resort & Seawater Spa, could use it if a masseuse called in sick or an with particular partners,” said Liebel. “We’ve unexpected surge of requests came in. “We built something for the entire indus- grown through word of mouth.” — E.S. try,” Hamedeh said. “We’re not just competing with spas.” — K.V.
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OCTOBER 9, 2017 | CRAIN’S NEW YORK BUSINESS | 17
P016_P017_CN_20171009.indd 17 10/5/17 8:19 PM An Advertising Supplement to Crain’s New York Business
Creative ways mid-career professionals can finance and fit in higher education NEXT
Marjorie Dambreville, an administrative supervisor at tuition assistance to each employee per year, under IRS guidelines, so check with your HR department to see if Montefiore Medical Center’s School Health Program, knew there’s a program. Even if your employer does not provide tuition assis- she could do more professionally. In 2014, the 44-year-old tance, other organizations to which you belong, such as trade associations or your union, may offer scholar- Brooklyn resident went back to school while still working ships. Make sure you understand the terms so you can plan ahead. Initially, Dambreville’s union covered about half of her tuition, but when she moved up into a high- LEVEL full time, putting in hours of study on nights and weekends. er-paying management position, her tuition assistance She has been able to attend Manhattan College by tapping was reduced to about one-fifth of her costs. TAILOR YOUR STUDIES TO YOUR LIFESTYLE: If you a mix of tuition assistance—from her union and $20,000 in have responsibilities such as a full-time job, a spouse or a family, it can be challenging to free up time for federal student loans. mid-career education. Consider options such as online courses, which can save you commuting time, and programs tailored to adult learners that offer classes on weekends or evenings, which may be more convenient ambreville is working toward a B.S. in organization- RESEARCH ALL PROGRAMS: A recent TD Ameritrade for full-time working adults than classes that take place Dal leadership at the college’s School of Continuing survey found that 29% of recent college graduates on weekdays during the day. Prospective students who and Professional Studies, which she believes will help listed their field of study as a financial regret. Before have young children should also consider securing her advance to the manager or director level in her you enroll in a program to get ahead, make sure you additional childcare. career—and grow personally. know what the educational requirements are for your chosen career path. Talk with your human resources BUILD A SUPPORT NETWORK: There will be times As many mid-career department, mentors or local recruiters to find out if a when it will be difficult to continue your studies be- adults realize, there is a degree is absolutely necessary for you to move ahead— cause of competing demands on your time, so culti- powerful reason to con- or if you can achieve your career goal through another vating relationships with people in your life who will tinue their education in route, such as getting a certificate in a particular field of support you in achieving your educational goals can today’s economy. Wheth- help ensure you’ll complete your studies. Dambreville study, or an associate’s degree, which will generally cost er you earn a bachelor’s has found that her fellow students in the program have you less and take less time than a four-year degree. Do degree, pursue graduate become an informal support network for each other, your due diligence to ensure the classes in the program education or earn a cer- cheering each other on and keeping in touch frequently of interest align with your career goals. tificate, well-targeted new when it gets challenging for someone to juggle school credentials can often lead CONSIDER YOUR FINANCES: If you ultimately decide with other responsibilities. “We end up doing a lot of to more job opportunities that an educational program will help your career goals, checking in on each other,” she said. Also consider how and a higher income. the next step is to plan how to pay for it without derail- you can off-load or step away from some of your exist- For some mid-career ing your budget. Make sure you aren’t overextending ing time-consuming responsibilities before you start a professionals, short- yourself when you go back to school or you could end program. Marjorie Dambreville er-term higher-education up compromising your retirement IN OUR CLASSROOMS, INDUSTRY PROFESSIONALS Montefiore Medical Center’s programs are helping to savings goals. Construction Management • Global Aairs School Health Program, TELL IT LIKE IT IS. Administrative Supervisor fill the gaps in skills and “The best thing you can do is try Hospitality Industry Studies • Human build career momentum. to save in advance,” said Dara At the NYU School of Professional Studies, you acquire real-world, Resource Management and Development Twenty-seven percent of adults have a non-degree Luber, senior manager of retire- practical experience from renowned industry experts and thought Integrated Marketing • Management and credential such as a certificate, post-secondary certifi- ment and the college savings cation or license, according to new data from the U.S. expert at TD Ameritrade. It is leaders in their fields. Our graduate programs provide an insider’s Systems • Professional Writing • Project Department of Education’s National Center for Edu- possible for adult learners to sock view to an education that is immediately applicable in the workplace. Management • Public Relations and cation Statistics. Eighty-three percent of respondents away money in a 529 college Immersed in the heart of NYC, you benefit from an unmatched who earned a certificate said the certificate program savings plan, which has no age Corporate Communication • Publishing: improved their work skills, and 58% said it helped them limit, she said. It is also possible global perspective, invaluable networking opportunities, and Digital and Print Media • Real Estate earn more. professional experiences at top companies and organizations. Fifteen to move the money you’ve saved Real Estate Development • Sports Business That said, it’s also a big commitment to go back to to another family member’s career-focused masters degrees prepare you for the challenges that Tourism Management • Translation school mid-career. Dambreville, who is recently mar- account, if, for instance, you need lie ahead and the successes within and beyond your reach. ried, has spent her weekends over the past three years the money to pay for a child’s working on school projects. tuition while you’re saving up for your own, according to the IRS. There’s a financial sacrifice, too. For someone who has If you opt for New York State’s other financial responsibilities, such as a mortgage plan, the money in the account ATTEND: A Graduate Information Session on Sunday, October 15, 11:00 a.m. or dependents to support, going back to school can grows deferred from federal and require careful financial planning. sps.nyu.edu/graduate-events1g sps.nyu.edu/graduate1g 212-998-7100 state income taxes, and when REGISTER: VISIT: CALL: However, many people find higher education, whether you withdraw it, you don’t have REQUEST INFORMATION: sps.nyu.edu/gradinfo1g APPLY TODAY: sps.nyu.edu/applygrad START CHIPPING AWAY AT LOANS EARLY: Dambre- it’s finally getting a four-year degree or gaining new to pay federal or state income taxes on the money if it ville doesn’t want to be saddled with student-loan debt skills through a shorter program, worth the challenge is used for higher-education expenses. when she graduates, so she is already making payments because of the potential for upward movement in their CHECK OUT YOUR EMPLOYER’S TUITION ASSIS- toward her loans when she can. “If my tax refund comes career and because it fulfills personal goals. TANCE PROGRAM: More than 60% of employers offer in, instead of spending it on something else, it goes to FIND YOUR So how do you determine if you should return to school tuition assistance in some form, according to EdAssist’s paying back the tuition loan,” said Dambreville. Al- FUTURE SELF mid-career, and fit it into your budget and schedule? Annual Review of Employer Tuition Assistance Pro- though it takes discipline to stay on track with her goals, Here are some strategies to consider. grams. Employers can provide up to $5,250 in tax-free she said, “For me, it’s an investment in myself.”
New York University is an af rmative action/equal opportunity institution. ©2017 NYU School of Professional Studies. S1
Education_3.indd 1 10/5/17 6:08 PM NYUSPS Of ce of Strategic Marketing and Communications Job Number: a1718-0279 Pub/Issue Date: CRAINSNY 10/09/17 Product: MS General - NextLevel Date 10/2/17 Size: 10.875” x 14.55” (trim) Artist: pw Bleed: N/A Proof #: 2 Color/Space: 4C NEXT LEVEL
IN OUR CLASSROOMS, INDUSTRY PROFESSIONALS Construction Management • Global Aairs TELL IT LIKE IT IS. Hospitality Industry Studies • Human At the NYU School of Professional Studies, you acquire real-world, Resource Management and Development practical experience from renowned industry experts and thought Integrated Marketing • Management and leaders in their fields. Our graduate programs provide an insider’s Systems • Professional Writing • Project view to an education that is immediately applicable in the workplace. Management • Public Relations and Immersed in the heart of NYC, you benefit from an unmatched Corporate Communication • Publishing: global perspective, invaluable networking opportunities, and Digital and Print Media • Real Estate professional experiences at top companies and organizations. Fifteen Real Estate Development • Sports Business career-focused masters degrees prepare you for the challenges that Tourism Management • Translation lie ahead and the successes within and beyond your reach.
ATTEND: A Graduate Information Session on Sunday, October 15, 11:00 a.m. REGISTER: sps.nyu.edu/graduate-events1g VISIT: sps.nyu.edu/graduate1g CALL: 212-998-7100 REQUEST INFORMATION: sps.nyu.edu/gradinfo1g APPLY TODAY: sps.nyu.edu/applygrad
FIND YOUR FUTURE SELF
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CN018390.indd 1 10/4/17 12:05 PM An Advertising Supplement to Crain’s New York Business
Immersive tech education helps New Yorkers reboot careers
hen Valerie McCarthy, 49, enrolled in the Flatiron McCarthy. “It demonstrates my style about how Boot camps often cost less, too. The average boot camp WSchool’s online full-stack web developer pro- I approach problems, how I might be collaborative— costs $11,400 per student, according to Course Report. gram, her goal was not to become a coder, like many we all dive in and get the job done together.” younger classmates starting out in their careers. “There are a lot of reasons to go to college,” said Adam Technology boot camps like the one McCarthy at- Enbar, co-founder and CEO of the Flatiron School. “I needed to be able to brainstorm code blocks on a tended are rapidly gaining in popularity across North “But if your singular goal is to go out and get a job as a whiteboard with engineers,” said McCarthy, a venture America. The five-year-old coding boot camp industry software engineer, this is a much more efficient path to capitalist. is expected to graduate 22,949 students in 2017 in the doing that than a traditional two- or four-year degree U.S. and Canada, according to Course Report, which program.” Last November, upon returning to New York City after conducts research on immersive technology education In addition to web development, some boot camps a nearly two-year stint working in Sweden, she carved and counts 95 such boot camp in the two countries. out three months to learn how to do just that at the offer training in in-demand technology skills, including Flatiron School. Now looking into her career options Many people find that an intensive boot camp is the data analytics, design, digital marketing and user-expe- here, McCarthy has mentioned her foray into coding to most efficient way to develop skills that will help rience design, in which students learn to enhance the them expand their professional horizons or pull off a interviewers. experience of using a product. career change. Often boot camps last just three or six “Companies are struggling to find workers that have “It illustrates my curiosity, my desire to be somebody months—a much shorter time commitment than these skills,” said Mickey Slevin, Regional Director of who is rowing in the boat, not just giving orders,” said getting a new degree. General Assembly NYC, another popular boot camp. Many boot camps help alumni find their way to these firms. General Assembly said it has placed multiple graduates at companies including American Express, Citi, IBM, IDT, JP Morgan Chase, Prolific Interactive, SCHOOL OF Revature, Rockstar Games, Sailthru, Shutterstock, COMMUNICATION TD Ameritrade, Verizon and Viacom. STATE AND MEDIA BUILDING In other cases, employers pay for existing team mem- NOW OPEN bers to attend the boot camps. “We have employers who send students directly to our classrooms to get OF THE ART 3,500-square-foot 4K television studio training to make sure they are up to date,” said Slevin. with accompanying control room The big challenge to completing these programs for REDEFINED. A flashcam studio that can connect to many is time. McCarthy went to school from 9 a.m. to any news organization in the world 6 p.m. every weekday during her boot camp, then did and two radio studios homework in the evenings. “The biggest advice is to As tomorrow’s leaders in the digital world, our 3,500-square-foot film studio make sure you have really cleared your schedule,” said McCarthy. “It is fully immersive.” communications and media students have access 36-seat screening room equipped with 4K Digital Cinema Projection and To make it possible for busy individuals to take courses, 7.1 Surround Sound boot camps often offer online course options that may to the very best technology and equipment — stretch out longer than in-person programs. “We had a Two 3,500-square-foot, pig farmer who did our online course,” said Enbar. “He housed in groundbreaking, Sony-equipped facilities. high-definition television studios with accompanying interoperable control rooms had to do it at the library. He ended up getting a job as a software engineer at a poultry company.” Whether it’s television, digital media, journalism, 187-seat presentation hall equipped with 4K Digital Cinema Projection Paying for a boot camp—even if it costs less than a sound or filmmaking, if the professionals are using it and 7.1 Surround Sound as well as degree—can be a challenge for those juggling other six professional PTZ financial responsibilities. However, new options are remote-controlled cameras in the real world, our students are mastering it here. emerging for those who need a loan. “There’s a whole A Foley stage cottage industry of financing popping up,” said Enbar. Skills Fund, for instance, tailors loans to students taking Learn more at montclair.edu/scm. 3,800-square-foot newsroom boot camp programs. with full broadcast capability Nonetheless, even with financing or grants available, it An interview/live music studio is important for would-be students to make sure they designed to accommodate four people have thoroughly looked into coding or any other new as well as recording and broadcasts of live music technical field they want to pursue before they commit to a boot camp program, according to experts. “If you’ve never opened an excel spreadsheet, data ana- lytics might not be the best first step,” said Slevin. Many schools offer shorter workshops in the same subjects as their boot camps. Those can be a good way to see if you are truly interested in an area, such as web development. Another option is to check out free online courses or attend meetups in your area of interest to see if you genuinely enjoy the subject matter. “You really have to know if you are passionate about it and this is what you want to do,” Enbar said. If you do find out you love the coding world, the rewards of attending a boot camp can be substantial. “It gave me a tremendous amount of confidence,” said McCarthy. “They gave me new skills to figure out problems. That’s empowering.” S3
Education_3.indd 3 10/5/17 6:08 PM BOMBFELL 15 Sells stylist-selected men’s clothing online for today’s more casual workplace LOCATION Garment District 2013 REVENUE $1.1 million 2016 REVENUE $21.4 million GROWTH RATE 1,920% PROFITABLE? Not disclosed LOCAL EMPLOYEES 93 TOTAL EMPLOYEES 97
HOW IT GREW CEO Bernie Yoo said that his six-year-old compa- ny is riding two powerful trends: the casualization of the work- place and the decline of brick- and-mortar retailers, which puts in limbo men who want help picking an out t. “Full- service customers need places online that meet their needs,” said Yoo. Technology is a potent aid too. anks to data-driven computer selections, a compa- MAKING DONS MORE DAPPER: ny stylist can book $1 million Co-founders Jason Kim, Sarah Lee and Yoo help style-challenged men in revenue each year. And to dress better. keep customers coming back, Bombfell recently added more accessories—even underwear. “You need to show them things you haven’t shown them before,” Yoo said. — E.S.
YIELDBOT WEWORK 18 Turns of ce towers into affordable shared Determines the optimal work spaces for entrepreneurs, freelancers, moment to deliver online ads small businesses and Fortune 500 companies to consumers 16 LOCATION Chelsea LOCATION Midtown 2013 REVENUE $46 million* 2013 REVENUE $2.5 million 17 2016 REVENUE $532 million* 2016 REVENUE $44.7 million GROWTH RATE 1,057% GROWTH RATE 1,652% PROFITABLE? Yes PROFITABLE? No ADORE ME LOCAL EMPLOYEES Not disclosed LOCAL EMPLOYEES 73 TOTAL EMPLOYEES 1,800 TOTAL EMPLOYEES 137 Sells lingerie and swimsuits as well as HOW IT GREW Most ad-tech companies target activewear and sleepwear, mostly online HOW IT GREW Co-founded by former kibbutznik advertisements based on shoppers’ past Adam Neumann in 2010, WeWork quickly caught LOCATION Garment District behavior, but Yieldbot captures consumers’ on as an alternative to traditional o ce space by 2013 REVENUE $5.6 million intent in real time. at ability—to deliver riding the wave of a decentralizing employment 2016 REVENUE $83.9 million brand messages to consumers at just the market. It also encouraged a community atmo- GROWTH RATE 1,389% right moment—is driving the company’s PROFITABLE? Not disclosed sphere among its freelancers and entrepreneurs with growth, said CEO Jonathan Mendez (below). LOCAL EMPLOYEES 60 the help of cra beer and premium co ee o ered With mobile devices shrinking the time TOTAL EMPLOYEES 121 on the house. e communal concept played well between when shoppers nd a product and enough to fuel international growth; the company when they purchase it, HOW IT GREW Lingerie is not very sexy if it does now has more than 170 locations in over 50 cities in the sooner advertisers not t. Adore Me CEO Morgan Hermand- nearly 20 countries. In the past two years it has also know what’s on a Waiche founded the company six years ago to targeted a new sector: companies with more than customer’s mind, the challenge Victoria’s Secret by o ering a larger 1,000 employees. Microso , General Motors, JetBlue, sooner they can cra array of sizes. In an industry that o en tops out Samsung, Dell and General Electric are among an enticing message. at DD, Adore Me has bras from super-petite its members, part of a segment that accounts for “Speed is our di erenti- size 30A to plus sizes up to 46I. Last year the around a third of the company’s sales. Bene ts for ation and why we have company also started o ering plus-size active- the big players include a cool alternative to their own grown,” said wear and swimwear. To keep customers coming quarters; proximity to startups and young entrepre- Mendez. It’s back, it launches a new collection every month, neurs; access to meeting space across the city; and an a capability with 40 to 60 fresh designs. And it’s rolling out instant o ce in far- ung locations around the world. the company an international expansion; it began shipping to WeWork, New York’s biggest startup, and its Asian has dubbed Australia this year. While the company does not joint ventures have raised nearly $5 billion in venture “owning the disclose its funding, Crunchbase reported Adore capital and private-equity backing. e company is n ow.” — J.M. Me raised $11.5 million in ve rounds. — K.V. currently valued at $20 billion.
*PrivCo estimate — M.F. ADORE ME BUCK ENNIS, COURTESY OF YIELDBOT,
OCTOBER 9, 2017 | CRAIN’S NEW YORK BUSINESS | 21
P021_CN_2017109.indd 21 10/5/17 9:26 PM 19 OMNIBUILD Oversees construction sites for hotel, residential and education buildings across the region and specializes in high-rise projects LOCATION Garment District 2013 REVENUE $26.1 million 2016 REVENUE $272.7 million GROWTH RATE 946% PROFITABLE? Yes LOCAL EMPLOYEES 136 TOTAL EMPLOYEES 136
HOW IT GREW In the city’s cyclical real estate industry, where timing is everything, a rapid expansion can help companies capitalize on a hot streak. To grow, Omnibuild acquired longtime collaborator Cava Construction in 2015, which increased the rm’s revenue sevenfold. It was a prescient move. A recent report noted demand for construction workers in the city has never been higher, a big reason Omnibuild’s revenue has contin- ued to go up and why it has more than $1.5 billion worth of work in a pipeline stretching into 2020. Last year Omnibuild completed a DoubleTree hotel in Times Square. It is currently working on a renovation of the Hotel Chelsea and a mixed-use project along the High Line. — JOE ANUTA 20 PADSQUAD TAL DEPOT 21 Designs and LOCATION Chelsea HOW IT GREW Ad dollars follow consumers, and Sells packaged goods and groceries in delivers ads for 2013 REVENUE $1 million today that means more spending on mobile mar- bulk online to homes and businesses mobile devices, 2016 REVENUE $10.6 million keting. “We’re playing in a fast-growing niche,” said around the U.S. incorporating GROWTH RATE 914% Daniel Meehan (above), founder and chief execu- dynamic media, PROFITABLE? No tive. Eschewing irritating pop-up and overlay ads, LOCATION Cedarhurst, Long Island LOCAL EMPLOYEES 18 such as video and PadSquad creates ads that render on the edges of 2013 REVENUE $2.5 million TOTAL EMPLOYEES 30 the screen or between paragraphs and give users 2016 REVENUE $24.6 million animation the option to scroll through, expand or skip. GROWTH RATE 895% PROFITABLE? Not disclosed LOCAL EMPLOYEES 76 TOTAL EMPLOYEES 76 HOW IT GREW Back in 2012, Tal Depot’s found- ers knew that food would be challenging to 22 VISTAR MEDIA 23 sell on the internet, but it was a wide-open Harnesses data sets and geospatial category for anyone who wanted to try. “If we could get our hands around it, we would have technology to help companies target some form of competitive advantage,” said digital advertising to consumers’ of ine CEO Jeremy Reichmann. It did so by becom- behavior ing an Amazon seller. It o ered only products LOCATION Union Square with a three-week to three-year shelf life, 2013 REVENUE $2.1 million thus eliminating costly refrigeration and tight 2016 REVENUE $20.3 million shipping windows. Today more customers are GROWTH RATE 875% coming to Tal Depot directly, including large PROFITABLE? Yes retailers that look to the company to stock LOCAL EMPLOYEES 23 dozens of their branches with bottled water, TOTAL EMPLOYEES 48 for example. Low prices and investments in service and logistics keep customers coming HOW IT GREW When Vistar Media launched back. “Most of our products are the cheapest ve and a half years ago, digital billboards and online,” said Reichmann. — J.M. bus-stop ads were relatively new. CEO Michael Provenzano (right) created a platform where advertisers could bid on that display space in an automated way. But things really took o a er the company launched mobile advertising in late 2014. e growing precision and availability of GPS and cell-carrier data allow the company to target and measure ad campaigns based on the movement patterns of customers. — K.V. BUCK ENNIS, COURTESY OF VISTAR MEDIA BUCK ENNIS, COURTESY OF VISTAR
22 | CRAIN’S NEW YORK BUSINESS | OCTOBER 9, 2017
P022_P023_CN_20171009.indd 22 10/5/17 9:34 PM 25
has o ered an auto-replenish feature that lets shop- MACK WELDON pers have products sent as o en as they like and gave bulk shoppers a discount. Berger also obsesses Sells men’s underwear, sportswear, socks about quality. Some styles of Mack Weldon boxers, and shirts, mostly online for instance, are made with superbreathable mesh that lets air in and moisture out. Such attention to LOCATION Flatiron District 2013 REVENUE $1.7 million detail attracted 193,000 customers by the end of last 2016 REVENUE $15.8 million year. e company adds 15,000 customers monthly. GROWTH RATE 827% To build upon its existing client base, the PROFITABLE? No company invested heavily in mobile advertising LOCAL EMPLOYEES 20 campaigns and experimented with podcast ads by TOTAL EMPLOYEES 20 partnering with shows such as Comedy Bang! Bang! So far Mack Weldon has raised $12.9 million in HOW IT GREW e “plight of a frustrated cus- funding. Today the company is focused on o ine tomer” pushed CEO Brian Berger (below) to opportunities as well—it recently announced its co-found Mack Weldon, which is determined to rst retail partnership, with Equinox, to sell its simplify the buying of men’s basics. Since 2012 it activewear collection. — YOONA HA
“We present ourselves as the polite rich-media company,” Meehan said. PadSquad can customize 14 ad formats for its clients, which include Intel and Disney. In a recent interactive campaign for Tim- berland, viewers spent on average seven seconds watching the ad’s dancing boot wearer (an eternity online), helping boost sales by more than 300%. — E.S.
23 FANDUEL TICKPICK 24 Lets daily fantasy sports customers win cash based on athletes’ statistical performance Operates an online marketplace in real-world competitions for buying and selling tickets to sporting LOCATION Flatiron District events, concerts, plays and more 2013 REVENUE $14.5 million LOCATION Garment District 2016 REVENUE $140 million* 2013 REVENUE $5.3 million GROWTH RATE 866% 2016 REVENUE $49.7 million PROFITABLE? No GROWTH RATE 846% LOCAL EMPLOYEES 150 PROFITABLE? Yes TOTAL EMPLOYEES 350 LOCAL EMPLOYEES 13 TOTAL EMPLOYEES 13 HOW IT GREW Fantasy sports site FanDuel gained traction last year as players switched to daily from HOW IT GREW TickPick distinguished itself by season-long competition. “What’s driven [growth] o ering detailed, venue-speci c seating charts is that daily fantasy has exploded in popularity,” and algorithms to help customers gure out the said founder and CEO Nigel Eccles, adding that best ticket deals in real time. It makes money FanDuel is close to pro tability. New o erings by charging a at commission. It also installed last year, such as soccer and Friends Mode, which a bidding feature that lets customers name the allows users to play against friends throughout the price they are willing to pay. e company’s NFL season, have helped. e company’s proposed a propitious sign, several states that previously initial focus was on venues in New York, but merger with rival Dra Kings collapsed in July outlawed paid online fantasy sports legalized it co-founder Brett Goldberg said TickPick has over antitrust concerns, but FanDuel continued last year, including New York, one of FanDuel’s grown by expanding beyond them. It now to grow, introducing golf and a reduced format biggest markets. — J.M. does 85% of its business outside the New York in which users pick smaller rosters of players. In *Crain’s estimate metropolitan area. — K.V.
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P022_P023_CN_20171009.indd 23 10/6/17 1:43 PM PROLIFIC INTERACTIVE 27 Designs, develops and implements strategies to manage the mobile apps and related products of leading brands LOCATION Dumbo, Brooklyn 2013 REVENUE $1.9 million 2016 REVENUE $15.5 million GROWTH RATE 720% PROFITABLE? No LOCAL EMPLOYEES 81 26 TOTAL EMPLOYEES 97 HOW IT GREW Proli c Interactive had just a few clients in its early days of developing computing services. “We’re capturing the devel- mobile products, but they were the attention- DIGITAL OCEAN oper and small- and medium-business segment getting kind, like ModCloth and Rent because no one else is focused on this opportu- the Runway. eir clients’ success using Provides cloud infrastructure, including nity,” said co-founder Ben Uretsky (above). Five Proli c’s mobile apps to build their businesses servers, storage and network capacity, to years out, the strategy has won Digital Ocean 1 drew more established brands to the agency, developers and engineering teams million customers—and that is without having a such as American Express and Saks Fi h Ave- sales force. Instead, the company has built con- nue. at trend continued last year, as LOCATION SoHo nections to developers, helping that community Gap and fast-growing e-commerce company 2013 REVENUE $12.8 million learn and use new technology . ose connec- jet.com turned to Proli c to handle their 2016 REVENUE $118.2 million tions have brought millions of visitors to the mobile-development needs. Also helping GROWTH RATE 824% PROFITABLE? No company’s website, where they get a taste of Digi- Proli c return to the Fast 50 list for the second LOCAL EMPLOYEES 101 tal Ocean’s brand and service. at and “keeping year in a row: growth in the services the TOTAL EMPLOYEES 263 it simple” make up the rm’s growth formula, company o ers its clients, such as its app- said Uretsky: “We build for developers so they management system, which makes it easier for HOW IT GREW e founders of Digital Ocean in can get back to coding applications rather than brands to track and improve the mobile user 2012 saw an opening in the market for cloud managing servers.” — J.M. experience. — M.F.
28 SHOPKEEP Provides a tablet-based, cloud-connected payments and point-of-sale system for small businesses, enabling them to take credit card payments, manage employees and keep track of inventory LOCATION Midtown South 2013 REVENUE $3 million 2016 REVENUE $24 million GROWTH RATE 702% PROFITABLE? No LOCAL EMPLOYEES 132 TOTAL EMPLOYEES 255 HOW IT GREW ShopKeep, the No. 1 point-of-sale system in the Apple app store, serves 24,000 small businesses and restaurants across the U.S. e company’s growth took o in 2015, when it added a credit card and payment-processing system that now accounts for 70% of new busi- ness, said CEO Michael DeSimone (far le ). ShopKeep Payments has helped the company triple its revenue and bring in 8,000 custom- ers. In August the company added ShopKeep Capital, a merchant cash- advance service. Next up? “We’re thinking about global expansion,” DeSimone said. — J.M. BUCK ENNIS, COURTESY OF DIGITAL OCEAN BUCK ENNIS, COURTESY OF DIGITAL
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P024_P027_CN_20171009.indd 24 10/6/2017 11:03:05 AM CN018387.indd 1 10/3/17 3:42 PM EXUSIA 31 Helps companies make sense of an abundance of data to make better business decisions LOCATION Midtown 2013 REVENUE $2.6 million 2016 REVENUE $18 million GROWTH RATE 604% PROFITABLE? Yes LOCAL EMPLOYEES 18 TOTAL EMPLOYEES 262
HOW IT GREW Exusia works with companies that have amassed customer data and want to use it to boost pro ts, trim costs and enhance products and services. e global technology consulting rm advises and provides so ware-as-a-service programs to clients in industries that gather data. Its platform can analyze rules against terabytes of data arriving by the millisecond from, say, a telecom client’s mediation website, to suggest ways to market or change prices. “Our sweet spot is building intelligent rules and engines,” said CEO Trevor Silver, who added that Exusia might expand its client base beyond its core markets in India, Africa and the Americas. — Y.H.
29 OSCAR
A health insurance company that uses and assigns them a “concierge team” with a nurse technology to improve member experience and customer-service representatives to respond with such perks as free telehealth to phone calls. ese perks are intended to help Oscar lower health costs because they refer mem- PHARMAPACKS LOCATION SoHo bers to the right place for care in an e ort to keep 32 2014 REVENUE* $56.9 million them out of the emergency room. 2016 REVENUE $426.3 million Sells health and beauty products e ACA has come under attack by the Trump TWO-YEAR GROWTH RATE 649% through its website and those of administration, which includes Kushner’s brother, PROFITABLE? No Amazon, eBay, Overstock, Walmart presidential senior adviser Jared Kushner, but LOCAL EMPLOYEES 332 and others Oscar remains committed to the law’s market- TOTAL EMPLOYEES 440 places. In addition to New York, Texas and Cali- LOCATION Islandia, Long Island HOW IT GREW Oscar was one of three health insur- fornia, Oscar added Ohio and Tennessee and will 2013 REVENUE $17.5 million ance companies to enter the New York market in return to New Jersey to sell plans for next year. 2016 REVENUE $121.1 million 2013, as the state opened a marketplace under the It also has begun selling plans to employers. Last GROWTH RATE 592% A ordable Care Act. By next year it will be the year Oscar lost $204.9 million, and it has taken PROFITABLE? No only one of them still in business. e company, steps to lower costs by narrowing its network. But LOCAL EMPLOYEES 255 founded by Kevin Nazemi, Joshua Kushner and its $727.5 million in venture-capital funding has TOTAL EMPLOYEES 255 Mario Schlosser (above, from le ), has become a provided a cushion. — JONATHAN LAMANTIA HOW IT GREW recognizable brand with its subway cartoon ads *Open enrollment for the rst year of the A ordable Care Act started Pharmapacks has snagged deals urging New Yorkers to sign up for coverage. Oscar Oct. 1, 2013. However, by law the company did not book revenue until with major retailers in recent years thanks to o ers its members free access to telemedicine Jan. 1, 2014. technology that allows the company to easily plug its inventory into new online market- places and automatically update its listings. In October 2016 Pharmapacks moved to a new facility that allowed it to fully automate its shipping process as well. at initially KARGO HOW IT GREW Smartphones have become the caused hiccups in operations, but it has most important screens in people’s lives—and ultimately made the company more e cient, Creates and sells ads that the source of Kargo’s growth, said CEO Harry said Andrew Vagenas (above), co-founder and appear on mobile devices Kargman. In addition to selling ad placements CEO. e company is shipping about 150,000 to Fortune 500 brands, Kargo conceived a pro- orders a week and is on track to bring in 30 LOCATION Union Square grammatic ad exchange that allows brands to $170 million this year. In addition to cultivat- 2013 REVENUE $18.1 million create and buy mobile ads on publishers’ sites. ing its current partnerships, Pharmapacks has 2016 REVENUE $130.1 million e result? Revenue from the exchange increased started expanding to provide marketing and GROWTH RATE 619% by 9,600% since Kargo launched its solution for distribution services to new brands. About 20 PROFITABLE? Yes programmatic ads in March 2016. e company have signed on so far, and Vagenas said the LOCAL EMPLOYEES 161 recently opened an o ce in New Zealand, Kargo’s goal is to represent a few hundred within the TOTAL EMPLOYEES 234 third non-U.S. location. — Y.H. next six months. — CAROLINE LEWIS BUCK ENNIS
26 | CRAIN’S NEW YORK BUSINESS | OCTOBER 9, 2017
P024_P027_CN_20171009.indd 26 10/5/17 8:25 PM 33 CEMTREX Develops and manufactures a diverse array of custom electronics LOCATION Farmingdale, Long Island 2013 REVENUE $13.7 million 2016 REVENUE $93.7 million GROWTH RATE 585% PROFITABLE? Yes LOCAL EMPLOYEES 15 TOTAL EMPLOYEES 575 HOW IT GREW Cemtrex builds the tangible electronics that exist only as ideas in the minds of its clients —such as a jacket that senses when a motorcyclist is falling and deploys an inter- nal airbag. e public company’s strategy has been to seek customers in emerging economies worldwide and pockets of industry in the U.S. that are expanding rapidly, such as the manu- facturing of medical devices and automotive electronics. “To go where the growth is, that’s how we think about our business,” said CEO Saagar Govil (right). Good service and refer- ences from Fortune 500 customers have helped. “As a smaller company, we can be more attentive and more accessible,” said Govil. “We do a lot to make sure we can be competitive and are able to compete at the lowest price point.” — J.M.
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ADTHEORENT Uses data points such as geography and time of day to identify consumers most likely to respond to a brand’s advertising LOCATION Hudson Square 2013 REVENUE $10.7 million 35 2016 REVENUE $70.5 million HOW IT GREW GROWTH RATE 557% Since the beginning, Food52 has PROFITABLE? Yes championed its community of excited home LOCAL EMPLOYEES 140 FOOD52 cooks, who contribute and test recipes for the TOTAL EMPLOYEES 170 site. Beginning with cookbooks, founders Merrill Publishes an online food magazine and Stubbs and Amanda Hesser (above, from le ) HOW IT GREW Adtheorent’s technology is the operates an e-commerce shop lled with built an e-commerce shop that appeals to the engine behind its growth, said managing partner cookware, decor, specialty foods and hand- tastes of its audience of 11 million cooks. e store Jim Lawson. e company not only tells adver- picked lifestyle items now sells more than 2,000 items, including $14 tisers which consumers they should go a er tins of orange-and-fennel- avored sea salt and and when, but it also provides them with “very LOCATION Chelsea $755 ox-horn carving sets imported from Italy. detailed information on who they are reaching— 2013 REVENUE $2.4 million Food52’s buying team has curated the online shop and how to reach more,” Lawson said. On the 2016 REVENUE $15.6 million through the careful use of sales data, expanding drawing board are products to generate additional GROWTH RATE 553% into high-volume categories. E-commerce makes growth by moving into industries such as nance PROFITABLE? No up two-thirds of revenue, with the remainder and health care, where Adtheorent’s sophisticated LOCAL EMPLOYEES 53 coming from advertising—both display and brand platform might be adapted for use to analyze TOTAL EMPLOYEES 62 partnerships. — C.E. biological data. — J.M.
OCTOBER 9, 2017 | CRAIN’S NEW YORK BUSINESS | 27
P024_P027_CN_20171009.indd 27 10/5/17 8:26 PM 36
SCHWEIGER DERMATOLOGY GROUP Offers cosmetic procedures such as Botox and laser treatments, as well as medical services, like plastic surgery and the treatment of skin diseases LOCATION Long Island City 2013 REVENUE $6.4 million KEPLER GROUP 2016 REVENUE $40.9 million Uses big data to create GROWTH RATE 544% digital marketing PROFITABLE? Yes LOCAL EMPLOYEES 325 LOCATION NoMad TOTAL EMPLOYEES 335 38 2013 REVENUE $3.1 million 2016 REVENUE $17.9 million HOW IT GREW Dr. Eric Schweiger (right) GROWTH RATE 478% started Schweiger Dermatology Group PROFITABLE? Yes in 2010 as a single Midtown practice. LOCAL EMPLOYEES 96 Demand led him to open a few more loca- TOTAL EMPLOYEES 112 tions. But in 2014 the group began acquir- HOW IT GREW Kepler set out to take advan- ing o ces from physicians who wanted tage of the revolution in advertising and data only to treat patients, not to run their technology, which were rarely employed business, gripe with insurance companies in a sophisticated way when the company or purchase an electronic medical records was founded in 2012. CEO Rick Greenberg system. More than half of its current 28 credits the group’s growth to its custom- locations in New York City, Long Island, marketing databases, which process enor- Westchester and Rockland counties and mous quantities of data to help its mostly New Jersey were acquisitions. Fortune 500 clients create individualized When it takes over physician practices, advertising across digital channels. For its SDG renovates facilities, adds clinicians to nancial services clients, for example, Kepler reduce wait times and buys equipment that can model which speci c product each cus- allows the physicians to introduce services tomer is most likely to want. Some customers such as laser treatments. e group’s growth will receive coordinated messages across has been fueled by more than $100 million email, Facebook, video and display that are in private-equity funding from investors focused on credit card o ers, while others including SV Health Investors, LLR Part- will get sequenced ads focused on annuity, ners and Triangle Capital Corp. — J.L. retirement or mortgage products. — K.V.
37 TRUVERIS Offers digital tools and analytics to assist ➠with prescription drug transactions be- tween employers, pharmaceutical-bene t managers, manufacturers, pharmacies and other companies in the supply chain LOCATION Midtown 2013 REVENUE $2.7 million 2016 REVENUE $16.2 million GROWTH RATE 501% PROFITABLE? No LOCAL EMPLOYEES 72 TOTAL EMPLOYEES 84
HOW IT GREW Truveris’ growth has been powered by the platform it created to allow employers, unions and governments to solicit a pharmacy-bene t manager through compet- itive bidding. “If you’re competing with others for the same business, you’re going to sharpen the pencil,” said Chief Executive Faisal Mush- taq (right). Clients save between 7% and 50% through that service, Mushtaq said. So far Truveris has gained traction via word of mouth. A er the company saved New Jersey money on drug bene ts, for example, it snagged a contract with Maine. Having re- cently raised $25 million in a Series D funding round, the company plans to invest in bulking
BUCK ENNIS, COURTESY OF XAD/GROUNDTRUTH up its sales team. — C.L.
28 | CRAIN’S NEW YORK BUSINESS | OCTOBER 9, 2017
P028_P029_CN_20171009.indd 28 10/5/17 8:53 PM 39 EYEVIEW GROUNDTRUTH 41 Creates video advertisements Collects location data to help businesses with proprietary personalization place ads on mobile devices that bring technology customers into stores LOCATION Flatiron District LOCATION Lower Manhattan 2013 REVENUE $8.9 million 2013 REVENUE $30.6 million 2016 REVENUE $47.6 million 40 2016 REVENUE $163.4 million GROWTH RATE 437% GROWTH RATE 434% PROFITABLE? No PROFITABLE? Yes LOCAL EMPLOYEES 103 LOCAL EMPLOYEES 143 TOTAL EMPLOYEES 129 MOVABLE INK TOTAL EMPLOYEES 450 HOW IT GREW As a marketer, Oren Harnevo Allows companies to update obsessed over every advertising dollar spent. email content in real time HOW IT GREW Formerly He launched Eyeview in 2007 to give brands known as xAd, GroundTruth LOCATION Midtown more assurance that video ads could drive is riding the wave of 2013 REVENUE $4.8 million both o ine and online sales. 2016 REVENUE $25.6 million location-based marketing e company’s proprietary database eval- GROWTH RATE 434% that serves consumers ads uates as many as 500,000 bids per second PROFITABLE? No based on their behavior in from advertisers, including Fortune 500 LOCAL EMPLOYEES 111 the physical world. “Location companies Lowe’s and Land Rover. Eyeview’s TOTAL EMPLOYEES 153 is such a huge signal of in- video-personalization technology, VideoIQ, tent to purchase,” said Serge generates hundreds of thousands of varia- HOW IT GREW Recognizing that emails are o en Matta (right), the company’s tions of an ad using data gathered from site out of date by the time people read them—tout- president. “If you go into a McDonald’s, you visitors to deliver personalized ing yesterday’s sale, for example—Movable Ink tend to buy, so the information is highly valued.” advertising. Advertisers’ appetite for video got its start providing so ware to make sure GroundTruth, which gathers location data from ads has only grown and is expected to content was current at the time the email was thousands of mobile apps, recently acquired continue expanding. e average brand opened. Growth has come as many hotels and WeatherBug, a popular app and a fertile source increased video advertising by 67% in the airlines have upgraded their systems to re ect of data because users check it so frequently. past two years, according to the Interactive moment-to-moment shi s in prices and avail- GroundTruth is now helping stores pinpoint ads Advertising Bureau. — Y.H. ability, making Movable Ink’s so ware even more based on weather forecasts. — E.S. in demand. — K.V.
Celebrate leaders in the Hispanic business community at our second annual awards luncheon! Reserve your tickets to the Hispanic Executive and Entrepreneur Awards. This program honors accomplished Hispanic business leaders in New York City who have a proven track record of civic and philanthropic achievements. Winners will be announced at the event.
Keynote speaker: Lynda Baquero, Consumer Reporter, NBC 4 New York
Friday, October 13 11:30 to 2 p.m. luncheon New York Athletic Club
Buy your tickets and meet the finalists at crainsnewyork.com/HEE2017.
Presenting Sponsor: Bronze Sponsor: Partners:
OCTOBER 9, 2017 | CRAIN’S NEW YORK BUSINESS | 29
P028_P029_CN_20171009.indd 29 10/5/17 8:52 PM 42 POPPIN Sells colorful, easy-to-assemble, modern of ce furniture and accessories LOCATION Flatiron District 2013 REVENUE $7.6 million 2016 REVENUE $40 million GROWTH RATE 430% PROFITABLE? No LOCAL EMPLOYEES 86 TOTAL EMPLOYEES 92 HOW IT GREW CEO Randy Nicolau (right) chalks up Poppin’s success rst and foremost to good de- sign. e aesthetic is simple, with design elements appearing across the whole product line of desks, chairs, le cabinets, pens and staplers—even a pingpong conference table. “We’re a one-stop shop for your corporate image,” he said. In the ve years since it launched, Poppin has enjoyed enviable press coverage for its eye-catching products, with plugs from People to PopSugar. Another key has been events. Poppin hosts career talks and happy hours for companies in its New York and San Fran- cisco showrooms. A Los Angeles space just opened, with a few more locations planned for next year. “We try to get people interacting with the brand,” Nicolau said, “even if we’re not hitting them over the head with a sales pitch.” — E.S.
HOW IT GREW Before native advertising and CONTENTLY branded content became marketing buzzwords, Connects brands to Contently di erentiated itself by helping compa- nies create in-depth and long-form content that freelancers and provides an felt more editorial than advertorial. Today the 43 online platform for creating company works with roughly 20% of Fortune and managing content 500 brands in various industries including LOCATION SoHo nance and retail. With demand for creative INTEGRAL 2013 REVENUE $4.3 million content continuing to explode, Contently has 45 2016 REVENUE $21.3 million steadily grown its network of freelance writers, AD SCIENCE GROWTH RATE 396% designers, videographers and data researchers PROFITABLE? No who showcase their portfolio on the site free of Helps clients place ads and measure their LOCAL EMPLOYEES 76 charge. Brands shop for talent, and Contently effectiveness on websites, devices, apps TOTAL EMPLOYEES 91 acts as the middleman. — Y.H. and video and social-media platforms LOCATION West Village 2013 REVENUE $23.4 million 2016 REVENUE $111.7 million* GROWTH RATE 376% BOYCE TECHNOLOGIES PROFITABLE? Yes LOCAL EMPLOYEES 233 Designs and manufactures communications and security equipment TOTAL EMPLOYEES 421 for mass-transit systems, mainly the MTA HOW IT GREW As digital advertising prolifer- LOCATION Long Island City Boyce’s product line has expanded to include ates, so do the problems for advertisers, which 44 2013 REVENUE $5.2 million alarm systems, radio and wireless networks, and include ads that never run, can’t be seen or 2016 REVENUE $25.1 million customer-information displays. Amtrak and appear alongside inappropriate content. Ad GROWTH RATE 383% Verizon are now clients. fraud in the U.S. costs marketers $8.2 billion a PROFITABLE? Yes e company has consolidated operations year, according to the Interactive Advertising LOCAL EMPLOYEES 75 in a new, 100,000-square-foot, state-of-the-art Bureau. Integral Ad Science is one of the leading TOTAL EMPLOYEES 75 facility in Long Island City, bringing everything rms o ering advertising and publishing clients HOW IT GREW Work for the Metropolitan from R&D to manufacturing under one roof. tools to ensure veri ed, quality placements. e Transportation Authority has been Boyce’s A er spending $40 million to acquire, renovate company partners with Facebook, for example, lifeblood. “We’re so busy for the MTA that we and equip the headquarters, Boyce Technologies to help marketers measure an ad’s e ectiveness. don’t normally solicit work,” said Charles Boyce, saw revenue dip last year. But now it’s poised With 22 o ces in 13 countries and technology the rm’s president. at’s starting to change. to speed ahead. “Being under one roof is more that works in 40 languages, the rm also can Seven years a er winning a contract to make e cient,” Boyce said. “We’ll be able to produce help clients with global campaigns. — E.S. emergency intercoms for subway stations, more and do it faster.” — E.S. *Unaudited BUCK ENNIS
30 | CRAIN’S NEW YORK BUSINESS | OCTOBER 9, 2017
P030_P032_CN_20171009.indd 30 10/5/17 9:11 PM NEW TRADITION 46 Sells outdoor advertising in city centers and transit hubs and on highways and interstate roads LOCATION Flatiron District 2013 REVENUE $3.1 million 2016 REVENUE $14.7 million GROWTH RATE 375% PROFITABLE? Yes LOCAL EMPLOYEES 7 TOTAL EMPLOYEES 9 HOW IT GREW New Tradition scored a coup a couple of years ago when it landed the contract for what is probably the most valuable advertising real estate in the country: 1 Times Square, located in an area traversed by nearly 400,000 people every day. at and the company’s expan- sion of its footprints in Los Ange- les and Miami have helped spur growth over the past year. Run by ve partners, New Tradition leases premium advertising space in nine metropolitan markets around the country and sells it to FIVE GUYS: New Tradition’s partners—from advertisers. e partners pride left, Chief Revenue Of cer Vincent Mastria, President Scott Alessandro, Chief Strategy themselves on being nimble and Of cer Lu Cerda, Chief Operating Of cer Bret entrepreneurial in an industry Richheimer and CEO Evan Richheimer—near dominated by public companies their prized billboard at 1 Times Square. and one-market players. In scal 2017 New Tradition is on track to nearly double last year’s revenue, CEO Evan Richheimer said. — J.M.
OCTOBER 9, 2017 | CRAIN’S NEW YORK BUSINESS | 31
P030_P032_CN_20171009.indd 31 10/5/17 9:12 PM 47 ➠ EAU DE LUXE Sells high-end, hard-to- nd fragrances and cosmetics to wholesalers and through online marketplaces such as Amazon, eBay and Jet
LOCATION Long Island City 2013 REVENUE $2.5 million 2016 REVENUE $12 million GROWTH RATE 372% PROFITABLE? Yes LOCAL EMPLOYEES 8 TOTAL EMPLOYEES 8
HOW IT GREW Eau de Luxe knows its niche: shop- pers who adore limited-edition or discontinued fragrances and are willing to pay a pretty price for them. “We’re always looking for something that people don’t have,” said Sudhir Gupta, who loves fragrance so much, he’s creating a perfume museum in a former Long Island City store. He has used his a ection for the products to
develop his thorough know-how about what to buy and sell. He buys up department store inven- tory of hard-to- nd or limited-edition perfumes to sell at markup and also buys from distributors,
many of them international. Sales have skyrock- eted as buyers have ocked online for special- ty goods in recent years. Amazon’s 27% sales SWEET SMELL OF SUCCESS: Gupta growth last year has trickled down to ourishing (right) and his wife, Mercedes ➠ Acosta, the rm’s creative director sales for companies such as Gupta’s. — C.E.
48 PUREWOW AXTRIA 50 Specializes in producing branded women’s lifestyle media content Helps pharmaceutical and nancial- services companies use data analytics to ➠ LOCATION Chelsea of PureWow’s rst forays into native advertising develop sales and marketing strategies 2013 REVENUE $3.2 million involved putting together “ e Wise Woman’s LOCATION Berkeley Heights, N.J. 2016 REVENUE $15.1 million Guide to Travel,” which featured Hyatt’s ameni- 2013 REVENUE $9.1 million GROWTH RATE 366% ties. Now branded content constitutes as much as 2016 REVENUE $39.5 million PROFITABLE? Yes 85% of the rm’s revenue, and the site typically GROWTH RATE 334% LOCAL EMPLOYEES 69 reaches more than 11 million monthly readers. PROFITABLE? No TOTAL EMPLOYEES 77 is year the brand completed its 180-degree LOCAL EMPLOYEES 164 turn from an editorial to an advertorial compa- TOTAL EMPLOYEES 818 HOW IT GREW PureWow has come a long way ny. In January PureWow was acquired by digital since it started on Black Friday 2010 as an email ad guru Gary Vaynerchuk and RSE Ventures, HOW IT GREW Industry knowledge is Axtria’s newsletter commenting on women’s fashion and real estate developer Stephen Ross’s VC rm. calling card. e founders and senior sta shopping. It’s grown into an online publisher tar- PureWow anchors Vaynerchuk’s new company, have 10 to 15 years’ experience serving the geting millennial and Gen-X women that covers e Gallery, which has plans to become a pharmaceutical industry, the core of the everything from home decor to makeup. portfolio of media properties. Ryan Harwood, business. “We are all deep in Pharma,” said In 2012 PureWow editors began creating con- PureWow’s CEO, has become CEO of Arvindh Balakrishnan, vice president of sales tent that married advertising and editorial. One e Gallery. — Y.H. and marketing. “We don’t have to be educated on the challenges. We educate our clients. at’s why we are growing.” Axtria’s services go beyond broad market- ing plans. Its cloud-based technology plat- forms help clients manage data and devise and ONDECK CAPITAL implement sales strategies. Financial services, 49 Axtria’s second area of expertise, is another Lends to small businesses through its online application and tools industry rich in customer data—and opportunity. LOCATION Midtown tomers use it, they use it frequently for everyday “Our modern cloud ➠2013 REVENUE $65.3 million 2016 REVENUE $291.3 million expenses.” e year also had its downsides, in- platforms deliver GROWTH RATE 346% cluding a sagging stock price and sta reductions cutting-edge insights PROFITABLE? No of 11% as the online lender worked to cut costs. and ensure strate- LOCAL EMPLOYEES 403 Next year Breslow is looking to expand the gies are successfully TOTAL EMPLOYEES 680 kind of partnership OnDeck has with JPMorgan operationalized Chase to other banks by providing technology to and execut- HOW IT GREW OnDeck’s expansion into Australia underwrite and service small-business loans. He ed,” said last year helped drive growth, as did its line-of- is also considering o ering credit cards, equip- CEO Jassi credit product, which was introduced in 2015 ment leasing and invoice factoring. “But always Chadha and saw lots of growth in 2016. “It’s a sticky digital,” said Breslow, who expects OnDeck to (right). product,” said CEO Noah Breslow. “Once cus- have a pro table quarter by year’s end. — J.M. — E.S. BUCK ENNIS, COURTESY OF AXTRIA
32 | CRAIN’S NEW YORK BUSINESS | OCTOBER 9, 2017
P030_P032_CN_20171009.indd 32 10/5/17 9:00 PM Photo Credit: Buck Ennis CRAIN’S NYC Summit: Monday, October 23, 2017 Sheraton New York Times Square 811 Seventh Avenue 8:00 a.m. – 8:30 a.m. Registration & Networking Breakfast 8:30 a.m. – 10:30 a.m. Program Cost to Attend: $189 for individual ticket(s) $1,890 for table(s) of 10 You must be pre-registered to attend this event. Fixing Mass Transit - What Needs to No refunds permitted. Happen to Get New York Moving Again Join Crain’s, the country’s top transportation experts and NYC stakeholders For more information: representing contractors, real estate developers, policy wonks and riders. Ashlee Schuppius They will offer insight into how to get our subways and trains moving again. 212-210-0739 Opening Panel Discussion: Former Transit Heads Weigh In [email protected] Mortimer Downey, President, Mort Downey Consulting LLC For sponsorship information: Dr. Michael Horodniceanu, Principal, Urban Advisory Group Elliot G. Sander, Managing Director, Global Transportation and US Infrastructure, Hatch Irene Bar-Am Samuel Schwartz, President, CEO and Founder, Sam Schwartz Transportation Consulting, LLC 212-210-0133 Closing Panel Discussion: Stakeholders Offer Input [email protected] Andrew W. Mathias, President, SL Green Realty Corp. John Raskin, Executive Director, Riders Alliance Denise Richardson, Executive Director, General Contractors Association REGISTER TODAY Tom Wright, President, Regional Plan Association crainsnewyork.com/events-nycsummit2017
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OCTOBER 9, 2017 | CRAIN’S NEW YORK BUSINESS | 35
P034-35_CN_20171009.indd 23 10/6/2017 1:11:00 PM GOTHAM GIGS
BALANCE CONTROLS: DJ’ing at clubs has helped Alvarez pick up BY LANCE PIERCE dental patients.
Polishing teeth and techno beats A cosmetic dentist from Queens moonlights around the area as a DJ
any children boldly declare their intention emotions: Bring them up; bring them down. You see people to become an astronaut or a movie star, but experience true joy.” DR. EDWARD A. ALVAREZ Edward A. Alvarez boasted of his desire for Cosmetic dentistry, Alvarez’s rst love, is still the gig a more practical career: dentist. that pays the bills. He does everything from teeth whiten- AGE 44 MHe traces his appreciation of dentistry to a ernoons ing to root canals on a fee-for-service basis. “It’s wonderful BORN Elmhurst, Queens spent hanging out at a family friend’s dental o ce in to see how someone can transform their entire being with RESIDES White Plains Queens. “It was fun to help out: holding the suction, put- a smile,” he said. About 10 years ago, he began oering der- EDUCATION Bachelor’s in biology ting on a mask. Bonding had just started, and mal llers and then Botox injections. and doctor of dental surgery, NYU You see the blue light was like a laser,” he said. “ e love “ In his o ce on a recent a ernoon, the only REVENUE Close to $1 million from started from there.” people hint of his other life was the house music from his practice—which has 600 to 700 Alvarez opened a cosmetic dental practice in experience a Ukrainian radio station that was so ly play- active patients—and DJ’ing Murray Hill in 2002. Two years later his profes- ing in the background. “We keep the o ce at a FAMILY AFFAIR Alvarez is the only sional life took a turn, thanks to a trip to Ibiza true joy” very chill vibe,” he said. American-born child and the young- that awakened another passion: becoming a DJ. DJ’ing has turned out to be good for his den- est of three in a Colombian family. Both of his sisters are physicians. A er a number of YouTube and DVDs tutorials plus tal business too. at day Alvarez was scheduled to see a pa- “In Colombia, a measure of success hours of messing around in his parents’ garage and tient he met more than a decade ago when he was spinning is, ‘Are you a doctor?’ ” he said. schmoozing with others in the industry, he debuted as DJ at Pacha, then a Hell’s Kitchen club, where she worked in ART OF DENTISTRY “I’m design- Eddie Alvarez at e Chelsea hotel in Atlantic City. VIP bottle service. “Not only does he do great dental work, ing, making sure the teeth are in line DJ Eddie averages one to two nights a month, spin- but he spins very well,” said Jennifer Mastrogiovanni, now with the body. A lot of it is your eye. ning sets heavy on house and techno music. e bulk of an elementary school teacher in Coney Island. Technology can help. You want to his gigs are in the New York area—his most recent was at At one nightclub, Alvarez made friends with the door- improve on what they have.” Cielo, in the Meatpacking District—though he has played man, who gave out his business cards. At another the door- MUSICAL NOTES Alvarez was a tenor singer and trombone player at Exchange LA in Los Angeles and La Jirafa Verde in San man, bartender, general manager and bouncers all became in his youth. “This was an easy Juan, Puerto Rico. “Being a DJ is like being a puppet mas- patients. “Some needed a cleaning and a bleaching,” he transition.”
BUCK ENNIS ter,” he said. “You can really run people through an array of said. “Others redid their entire smiles.” — KIM VELSEY
36 | CRAIN’S NEW YORK BUSINESS | OCTOBER 9, 2017
P036_CN_20171009.indd 36 10/6/17 4:39 PM SNAPS
Remembering the events of 16 years ago Comedian John Oliver, host of HBO’s Last Week Tonight, was the master of ceremonies at a Sept. 6 fundraiser for the National Sept. 11 Memorial & Museum. e gala was Alice Greenwald’s rst as the muse- um’s president and chief executive. She was promoted late last year a er having served as director since 2006. Ten million people have visited the museum since it opened in 2014, while 33 million have visited the memorial, which debuted in 2011.
Sex therapist Ruth Westheimer, Alice Greenwald and Jeffrey Tabak, Bloomberg LP founder Michael partner at Weil Gotshal & Manges and the museum’s board counsel, were Bloomberg, chairman of the memorial among the guests at the event, which raised $3 million. and museum, with John Oliver.
Humanitarian Celebrating art onstage award Singer Tony Bennett and actress Lucy Photographer Annie Liu at the party at Cipriani 42nd Street. Leibovitz presented the Jewish National Fund’s Tree of Life Award to Pamela Liebman, president and chief executive of e Corcoran Group, during a gala and bene t Sept. 13.
e American eatre Wing, which co-presents the Tony and Obie awards, held its centennial gala Sept. 18. Actor Samuel L. Jackson and his wife, LaTanya Richardson Jackson, were Russell Robinson, CEO of the fund; Gary Jacob, executive vice president of the honorary chairs of the event, which Glenwood Management; and Jeffrey Levine, chairman of Douglaston Development, raised a record $1.2 million. Levine Builders and Clinton Management as well as president of the fund’s board, attended the celebration at Cipriani 42nd Street, which raised nearly $1 million.
JIN LEE, JAMAL COUNTESS GETTY IMAGES, PERRY BINDELGLASS JIN LEE, JAMAL COUNTESS GETTY IMAGES, PERRY SEE MORE OF THIS WEEK’S SNAPS AT CRAINSNEWYORK.COM/SNAPS. GET YOUR GALA IN SNAPS. EMAIL THERESA AGOVINO: [email protected].
OCTOBER 9, 2017 | CRAIN’S NEW YORK BUSINESS | 37
P037_CN_20171009.indd 37 10/6/17 10:55 AM FOR THE RECORD*
NEW IN TOWN ■ West 16th Street Owner by Akron Trotter Property ■ AmTrust Title Insurance ■ Schreck Rose Dapello Advisors handled the lease 125 W. 16th St. Group. Co. signed a 13,771-square- Adams Berlin & Dunham for the tenant. ■ Ando e owner of this multifam- foot lease to expand its signed a relocation lease 31 W. 14th St. ily home led for Chapter ■ Knickerbocker Social oce space at 220 E. 42nd for 11,600 square feet at ■ EastWest Institute signed What was once a 11 bankruptcy protection inked a deal for 12,776 St. e company currently 888 Seventh Ave. e law a 10-year lease for 10,015 delivery-only sandwich, Sept. 28. e ling cites square feet at 240 W. 52nd occupies 7,634 square feet rm, which specializes in square feet at 708 Third Ave. soup and salad joint is now estimated assets and liabil- St. e beer hall, whose and plans to move from entertainment, plans to e nonpro t, which works a fast-casual eatery in Union ities of $10,000,001 to $50 opening is slated for the part of the 31st oor to move from 5 Columbus to prevent conicts and Square. At chef David million. e creditors with spring, plans to take over the entire 24th oor of the Circle early next year. e increase diplomacy around Chang’s latest venture, din- the largest unsecured claims the 5-story eater District 37-story art deco building. asking rent for the 13-year the world, plans to occupy ers pick up premade food. are CDP Contractors, owed building. e asking rent e asking rent for the deal was in the low $80s per a part of the 11th oor of $400,000; Tersigni Palachek, was $55,000 a month. 10-year deal was $67 per square foot. e negotiated the 35-story building. CBRE ■ Lil’ Gem owed $122,000; and Belkin Menkin Realty Services bro- square foot. Cushman & rent was in the $70s per represented the landlord, 29 Clinton St. Burden Wenig & Goldman, kered the deal for the tenant Wake eld represented the square foot. e landlord, Marx Realty, in the trans- Size doesn’t matter. is owed $6,982.76. and the landlord. landlord, SL Green Realty. Vornado Realty Trust, was action. JLL represented the Lebanese eatery on the e tenant was not repre- represented in-house. Cold- tenant. e asking rent was Lower East Side seats only ■ Mikkeller NYC agreed sented by a broker. well Banker Commercial $63 per square foot. ■ about 30 but o ers an STOCK TRANSACTIONS to take 7,500 square feet array of Middle Eastern at 51-40 58th Place. e foods, including vegan and ■ CBS Corp. (CBS-N) Copenhagen, Denmark– gluten-free options. Leslie Moonves, CEO, sold based microbrewery will DEALS ROUNDUP 328,000 shares of common use the Woodside, Queens, TRANSACTION SIZE BUYERS/ ■ RetroClubNYC stock at prices ranging from warehouse to store its TARGET/SELLERS [IN MILLIONS] INVESTORS TRANSACTION TYPE 161 W. 23rd St. $57.79 to $59.04 Sept 19 bottles and ingredients. Carver Korea Co. Ltd./Bain Capital $ 2,691.5 Unilever PLC (unknown SB M&A is Chelsea dance club is and Sept. 20 in transactions e space is also about a Private Equity LP; Goldman Sachs & majority stake) designed for the 35-and- worth $19,246,080. He now 10-minute drive to Citi Co. LLC (Manhattan) older crowd. e ambience holds 2,032,327 shares. Field, where the brewery Alliance Automotive Holding Ltd./ $2,016.8 Genuine Parts Co. SB M&A and playlist are reminiscent plans to open a location. The Blackstone Group LP (Manhattan) of clubs from the ’70s, ’80s ■ iFresh (IFMK-O) Kalmon Dolgin Aliates Phillips 66 Partners LP $1,050 First Reserve Corp.; GCI and ’90s. For now it’s open Long Deng, CEO, sold brokered the deal for the Stonepeak Infrastructure only on ursday, Friday 150,000 shares of common landlord, RHK Associates. Partners (Manhattan); Tortoise and Saturday nights. stock for $12.10 per share Buchbinder & Warren Re- Capital Advisors LLC Sept. 20 in a transaction alty Group represented the AutomotiveMastermind Inc. $435 IHS Markit Ltd. (78%) SB M&A ■ Rice & Gold worth $1,815,000. He now tenant. e asking rent for (Manhattan)/JMI Equity 50 Bowery owns 11,280,000 shares. the ve-year deal was $18 Lynx Resources Ltd./Fusion Capital AG; $402.5 Central Asia Metals Plc SB M&A Set in the Hotel 50 Bowery per square foot. Orion Mine Finance (Manhattan) Varonis Systems in Chinatown, this restau- Exa Corp./ArrowMark Colorado $400.3 Dassault Systèmes SE SB M&A rant has a pan-Asian menu (VRNS-O) ■ Horizon Imports signed Holdings LLC; Soros Fund Management with dishes from the Philip- ■ Yakov Faitelson, CEO, a ve-year lease for 5,305 LLC (Manhattan) pines, Bangladesh and Iran. sold 70,842 shares of com- square feet at 10 W. 33rd Carlin America Inc. (Manhattan) $245 Round Hill Music LLC SB M&A It currently serves breakfast mon stock at prices ranging St. e women’s hosiery (Manhattan) and dinner. from $40.51 to $41.42 per and footwear manufac- Shenzhen Suishou Technology Co. Ltd. $200 KKR & Co. LP (Manhattan) GCI share Sept. 18 and Sept. turer plans to occupy the ■ Zia Esterina Sorbillo 19 in transactions worth sixth and 12th oors of the Bay Bancorp Inc./ Basswood Capital $133.9 Old Line Bancshares Inc. SB M&A Management LLC (Manhattan); 334 Bowery $2,901,696. He now holds 12-story building. Adams EJF Capital LLC; H Bancorp LLC Gino Sorbillo, a pizzaiolo 300,147 shares. & Co. brokered the deal who appears frequently on for the landlord, Ten West Ambatana Inc. (Manhattan) $100 Not disclosed GCI such shows as MasterChef irty ird Associates, and GTx Inc. $48.5 Abingworth LLP; Aisling GCI Italia, opened his rst Unit- REAL ESTATE the tenant. e asking rent Capital LLC (Manhattan); CAM Capital (Manhattan); individual ed States outpost, in Little was $58 per square foot. investors; Majalin LLC (Manhattan); Italy. Expect to nd 10- to RETAIL Tavistock Life Sciences ■ COMMERCIAL 12-inch pizzas just like the C-Town signed a 20-year Vivimed Labs (Mascarene) Ltd. $42.5 OrbiMed Advisors LLC GCI signature menu items at his lease for 17,721 square ■ Matador Content signed a (Manhattan) three other restaurants, in feet at 442 Saratoga Ave., lease for 17,255 square feet Logtrust SL $35 Insight Venture Partners GCI Naples, Italy. Brooklyn. e supermarket at 215 Park Ave. South. e LLC (Manhattan); Kibo Ventures will occupy the ground and television and lm produc- lower oors of the residen- tion company will relocate Signostics Inc. $35 KKR & Co. LP (Manhattan) GCI MOVES AND EXPANSIONS tial building. New Street from its space at 150 Fi h Bellerophon Therapeutics Inc. $23.4 Individual Investors; Linde GCI Realty Advisors represented Ave. e asking rent for North America Inc.; Management of Bellerophon Therapeutics Inc.; ■ Koio the landlords, Pennrose the 10-year deal was $68 New Mountain Capital LLC (Manhattan); 1086 Madison Ave. Properties, Blue Sea per square foot. Newmark Puissance Capital Management LP e Lower East Side–based Development, Duvernay Knight Frank represented (Manhattan); Venrock (Manhattan) luxury leather goods brand & Brooks and Rosenberg the tenant in the deal. e Engage Therapeutics Inc. $23 Adage Capital Management GCI known for handcra ed Ital- Housing Group, as well as landlord, SL Green Realty, LP; LifeSci Index Partners LLC (Manhattan); Lumira Capital Corp.; ian leather sneakers opened the tenant in the transac- was represented in-house. TPG Biotech its second storefront, on the tion. e asking rent was Upper East Side. $30 per square foot. ■ Translation inked a deal Selected deals announced for the week ending Sept. 28 involving companies in metro New York. SB M&A: Strategic buyer M&A represents a minority or majority acquisition of existing for an additional 15,000 shares of a company without the participation of a financial buyer. GCI: Growth capital ■ Halston signed a lease square feet to expand its of- investment represents new money invested in a company for a minority stake. BANKRUPTCIES for 14,440 square feet at ces at 10 Jay St., Brooklyn. SOURCE: CAPITALIQ 25 W. 39th St. e luxury e advertising agency will ■ Blue Chip Ventures fashion label plans to move now occupy about 46,000 578 Driggs Ave., Brooklyn its showroom and oces square feet. Newmark GET YOUR NEWS ON THE RECORD * e owner of this multiuse from 96 Spring St. this Knight Frank represented To submit company openings, moves or real estate deals, or to receive further information, ABOUTemail [email protected] SECTION. building led for Chapter month. e asking rent for the tenant. JLL brokered 11 bankruptcy protection the seven-year deal was the deal for the landlords, For the Record is a listing to help businesspeople in New York nd opportunities, potential Sept. 25. e ling cites es- around $70 per square foot. Triangle Assets and Glacier new clients and updates on customers. Bankruptcy lings from the eastern and southern timated assets of $1,000,001 Avison Young represented Global Partners. e asking districts of New York are listed alphabetically. Stock transactions are insider transactions at New York companies obtained from Thomson Reuters and listed by size. Real estate listings to $10 million and liabilities the landlord, or Equities. rents at the tower reach as are in order of square footage. of $500,001 to $1 million. e tenant was represented high as $100 per square foot.
38 | CRAIN’S NEW YORK BUSINESS | OCTOBER 9, 2017
P038_CN_20171009.indd 38 10/6/17 10:53 AM PHOTO FINISH Roof is a hive of activity he Javits Center’s chief engineer, Rick Brown (far right), with the help of bee- keeper Liane Newton, inspected three hives atop the convention center’s 6.75- Tacre green roof soon before harvesting their rst batch of honey last month. e 250-ounce yield was placed in more than 130 jars and stored in the o ce of Tony Sclafani, the center’s chief commu- nications o cer. “If you walked into my o ce, I’d give you a 1.5-ounce jar of honey,” Sclafani said. e center bought 12,000 California bees in April. By harvest time they had multiplied to nearly 80,000. e honey is not for sale, but it is available in a vinaigrette accompanying the $10.50 Jacob’s salad at the center’s Taste NY bistro. “Next year we’ll hopefully yield more honey, and once we get a larger amount, we would certainly look into o ering it to the public,” Sclafani said. e honey represents sweet redemption for the convention center. “We used to be the No. 1 killer of birds in the city,” Sclafani said. A $463 million renovation replaced the center’s mirrored glass exterior with a translucent, dotted version that birds can see. e new green roof is the second largest in the country (aer a Ford Motor Co. plant in Dearborn, Mich.). Bird deaths are down 90%, and 26 bird and ve bat species have been identi ed thriving on the roof. “ e bee program epitomizes how far we’ve come in terms of sustainability,” Sclafani said. — JEREMY SMERD RON ANTONELLI
OCTOBER 9, 2017 | CRAIN’S NEW YORK BUSINESS | 39
P039_CN_20171009.indd 39 10/6/17 4:34 PM TO CREATE THE POPCORN IN HERE, PIPCORN HAD TO GO OUT THERE.
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