When Tim Slifkin founded Las Vegas-based company Riot Wireless, he saw an opportunity to develop Internet of Things (IoT) edge devices—sensors that gather physical data and transmit it across virtual networks, in industrial spheres like energy, water quality, agriculture and more.
Now, Riot Wireless—with nearly 5,000 units already in the field—has secured $2.25 million in funding to grow the development of its products, particularly tank level monitors. These sensors, which have a single internal battery, can be easily screwed on storage tanks and, for several years, transmit data to the oil, gas or chemical companies that run them.
“Having access to local players that have an interest in equity funding is a big deal,” Slifkin said. “Whatever we can do to help motivate access to capital in our local area, we would continue to try and push that, because there’s a bunch of opportunities here. There are so many people who want to do stuff and just can’t get there, because they can’t finish the funding here. It’s a challenge. But we did, and we’re off to the races. So it’s exciting.”
The funding comes from a group of investment companies in connection to the Federal New Markets Tax Credit—a program that gives capital to businesses in places where it has not gone historically, said Leah Hendricks, vice president at Advantage Capital, which helped connect RIOT to funding.
Advantage Capital initially encountered the Riot Wireless team through Nevada’s Small Business Development Center, Hendricks said, and was immediately impressed by the company’s potential, and how it was deploying its technology in a tough industrial environment.
“We’re so excited to see what Riot will do as it continues to grow and to disrupt what has been a sometimes sleeping industry,” she said. “And this level of innovation is happening in Nevada.”
Slifkin said he chose to make Riot’s home in Las Vegas because he saw it as an exciting opportunity, not only in terms of technology but also community—specifically by hiring people locally. All of the company’s fabrication is done within Nevada, he added.
The creation of good jobs in low-income communities was a primary motivator when investing in RIOT, said Kerwin Tesdell, president of Community Development Venture Capital Alliance, a nonprofit and lead investor.
“We’re looking for businesses that have significant workforces. We typically look for businesses that actually create products,” Tesdell said. “So, with that lens and then understanding the financial opportunity that [Slifkin] presented, this was a perfect kind of business for us.”
There’s often a “herd mentality” among investors in Silicon Valley, he said, in which they look for companies that fit a certain, high-tech profile. While his organization is looking for tech-enabled businesses with good financial goals, Tesdell said, it also cares about companies like Riot that have a social mission.
Being additive to the Las Vegas community is important to Riot, Slifkin said. The company wants to engage with locals to build its enterprise, he continued, citing a potential intern program through UNLV and hiring graduates who want to work in technology while staying in Nevada.
Looking ahead, Riot is in a good position and excited about the future, Slifkin said, and the company has already dramatically opened up the market by bringing a high level of technology at a low cost.
A small business such as Riot is poised to be more reactive to customer requirements than larger IoT edge device developers, he added.
“We’ve got a team that’s got a lot of experience,” Slifkin said. “So we’re bringing a lot of innovation into an industry that hasn’t seen all that much innovation in the past 50 years.”
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