‘Legit’ BoxCast Poised For A Breakout Year

In a back room reserved for BoxCast’s employee pingpong tournaments, a staffer on a recent afternoon was on a sales call — taking advantage of what might have been the only quiet space in the company’s second-floor offices at Burke Lakefront Airport.

When the startup, which delivers high-definition streaming services to a wide array of businesses, teams and organizations, moved into the 3,600-square-foot spot in 2013, it had only a handful of employees. Now, with 27 full-time employees, plus a collection of contractors and well-heeled advisers, BoxCast co-founder Gordon Daily believes the company is primed to really take flight.

That eventually could mean a move from its airport headquarters, but Daily is much more focused on the months ahead, which will include the unveiling of a new product, another fundraising round and additional hires.

In late December, BoxCast reported raising $1.43 million in a $2 million round that disclosed a notable new board member: Sam Gerace, the CEO of Veritix until it was acquired by AXS in 2015. Gerace, who has been an adviser since BoxCast hired its first employee, has been the founder and/or leader of five tech startups (most recently LaunchVector, a 5-month-old software company).

“Their purpose was to monetize the onsite experience,” Daily said of Veritix, a digital ticketing company that got its start as the Dan Gilbert-owned Flash Seats in 2006. “What is it that BoxCast does? We monetize the offsite experience. There are so many interconnects.”

Gerace said when he talks to entrepreneurs such as Daily, he gives them a couple options.

“I say, ‘You have a choice. If I’m not an investor, but a mentor, I can advise you on anything. But if I’m an investor, you can’t come to me for advice on how to deal with the board and investors, because I have the rights and obligations of an investor,’ ” Gerace said.

So for now, he’s an adviser with “incentive equity” as part of his board membership. But Gerace said he’ll look to invest in BoxCast’s next financing round.

Steve Biegacki — the president and CEO of Kramer Electronics USA, and a longtime former Rockwell Automation executive — is another intriguing addition to BoxCast’s board of directors.

The prominent executives are lending a hand as BoxCast continues to own a chunk of the church market, a segment that was the site of the company’s first online broadcast in 2008. BoxCast also is strengthening its position in sports, especially with colleges and universities, and sees a huge opportunity in selling its streaming services to municipalities and businesses.

BoxCast, in the words of Daily, its president, is “legit, bringing in real money and real customers.”

Read the full story at Crain’s Cleveland Business.