A quick history of hurricanes in New England: Polyrisk, Preparedness, and the New Frontier for disaster tech

A quick history of hurricanes in New England New England, especially Massachusetts, doesn't typically don’t see many direct hits from tropical systems during the month of July, but our risk increases as we move into August, September and October. This year’s Atlantic Hurricane Season is already a record-maker. So far, three storms have been named, the most devastating of those storms was Hurricane Beryl. Beryl devastated parts of Jamaica and the state of Texas with strong winds and flooding rain earlier this month. According to the National Hurricane Center, Beryl was the strongest July Atlantic hurricane on record, the earliest Category 5 hurricane in history in the Atlantic on July 2, 2024, and it was the second Category 5 hurricane to form during the month of July. Hurricane Emily was the first, forming back in July 2005. Since Beryl, though, the tropics have been quiet. But we can’t let our guard down. From June to August, tropical systems have been known to form in the Caribbean Sea and Gulf of Mexico into the Atlantic Ocean as sea surface temperatures begin to rise. Some of those storms have even impacted the U.S. East Coast over the years. New England, especially Massachusetts, doesn't typically don’t see many direct hits from tropical systems during the month of July - but it's not unheard of. In July 1996, Tropical Storm Bertha impacted New England with periods of heavy rain, gusty winds and power outages in the region, including Massachusetts. About 80 years before that, an unnamed hurricane made landfall in July 1916 in New England. But history has shown us that some of the most notable and destructive hurricanes to directly impact the Commonwealth have occurred during the months of August, September and October. **Executive Summary** - **Climate-driven disasters** like hurricanes are increasingly impacting non-traditional regions, including Boston, creating new categories of risk and opportunity for investors. - The **media tech sector** is innovating rapidly in emergency management, AI-driven forecasting, and real-time communications—key areas for high-growth investment. - **Angel investors** must adapt due diligence, valuation, and portfolio strategies to account for polyrisks and disaster-driven market shifts. - **Syndicates, microfunds, and sector specialization** are shaping early-stage deal flow; regulatory changes and new funding structures require updated approaches. - **Actionable insights** include leveraging sector-specific networks, prioritizing startups with robust disaster resilience solutions, and diversifying across climate-adaptive technologies. **Introduction: Hurricanes, Boston, and the Polyrisk Paradigm** Boston, historically shielded from direct hurricane landfalls, now faces mounting exposure as climate volatility intensifies. The city’s dense infrastructure, economic significance, and reliance on digital media and communications heighten its vulnerability—not just to wind and water, but to cascading effects across supply chains, data networks, and local economies. For active, accredited seed and angel investors, understanding these interconnected risks (“polyrisks”) is essential for identifying both threats and outsized opportunities in the next generation of media tech startups. **Section 1: The New Emergency Management Opportunity** **Media Tech Meets Disaster Response** - **AI & Predictive Analytics:** Startups are leveraging AI for early warning systems, disaster forecasting, and post-event analytics. Platforms like Augurisk and Synrgai use machine learning and big data to assess and predict risks for specific locations, providing actionable intelligence for businesses and municipalities[1]. - **Geospatial Intelligence:** Real-time mapping and satellite-based monitoring (e.g., Re:Public, WEO) are enabling granular risk assessment and resource allocation during and after disasters[1]. - **Resilient Communications:** Tech-enabled platforms for emergency coordination (e.g., CommandPost) streamline incident reporting, response tracking, and multi-agency collaboration—critical for cities like Boston during hurricane events[1]. **Investment Implications** - **Deal Flow:** Disaster resilience and emergency management startups are attracting attention from both corporate and public sector partners. Programs like the Verizon Disaster Resilience Prize offer non-dilutive funding and integration opportunities for portfolio companies[2]. - **Valuation & Exit:** Startups with proven traction in disaster-prone regions or with scalable SaaS models often command higher pre-money valuations and attract strategic acquirers in telecom, insurance, and public safety[2]. **Section 2: Polyrisk and Due Diligence—What Investors Must Know** **Connecting the Dots: From Climate to Cap Table** - **Polyrisk Defined:** Hurricanes in Boston trigger direct losses (property, infrastructure) and indirect disruptions (media blackouts, advertising revenue drops, data center outages). These ripple effects can impact startup performance, customer contracts, and even exit timelines. - **Due Diligence Upgrades:** Investors must assess not only a startup’s core product but also its disaster recovery plans, supply chain resilience, and insurance coverage. Review the cap table for exposure to local founders or key customers concentrated in high-risk zones. - **Deal Structures:** Convertible notes and preferred stock with anti-dilution provisions can help manage downside risk in volatile markets. Pro rata rights are valuable when follow-on rounds are needed to weather post-disaster slowdowns. **Evaluating Startup Resilience** - **Criteria:** Prioritize teams with operational experience in crisis management, strong B2B or government partnerships, and tech stacks designed for uptime and scalability during emergencies. - **Term Sheets:** Negotiate milestones and tranches tied to disaster resilience metrics—such as system uptime during regional outages or successful pilot deployments with emergency agencies. **Section 3: Portfolio Strategy—Diversification, Syndicates, and the Path to ROI** **Current Trends in Early-Stage Investing** - **Sector-Specific Microfunds:** The rise of niche VC and angel syndicates (e.g., media tech, climate resilience) allows investors to leverage deep domain expertise and access curated deal flow[3]. - **Syndicate & Co-Investment:** Participating in syndicates enables risk-sharing and access to larger, more complex deals—especially in capital-intensive disaster tech or infrastructure plays[3]. - **Diversification:** Given the unpredictable nature of polyrisks, diversify across geographies, tech verticals, and business models (B2B SaaS, hardware, data services) to mitigate correlated losses. **Exit Strategies and Regulatory Considerations** - **Exits:** M&A by large telecoms, insurers, or public sector integrators is common for startups with validated disaster resilience solutions. IPOs remain rare but possible for platforms with national or global reach. - **Regulatory Shifts:** Stay informed on evolving FEMA, FCC, and SEC regulations affecting disaster tech, data privacy, and emergency communications. These can impact startup valuations and acquisition attractiveness. **Actionable Insights for Angel Investors** - **Network Building:** Join sector-specific angel groups, attend emergency management and climate tech conferences (e.g., SXSW, NFX), and engage with local government innovation offices for early deal flow. - **Due Diligence:** Use disaster risk analytics platforms to independently assess startup exposure and resilience. Request detailed business continuity and insurance documentation during diligence. - **Deal Terms:** Structure investments with clear anti-dilution protections and pro rata rights; consider convertible notes for capital efficiency in early rounds. - **Portfolio Management:** Regularly stress-test portfolio companies for disaster scenarios—review their customer concentration, supply chain dependencies, and data backup practices. **Conclusion & Call to Action** The era of “unthinkable” disasters in cities like Boston is here. For angel investors and founders, the intersection of climate risk and media technology is both a challenge and an unprecedented opportunity. By upgrading due diligence, embracing sector specialization, and investing in startups building for resilience, you can position your portfolio for both impact and outsized returns. **Take Action:** - Audit your current portfolio for disaster resilience. - Connect with media tech and emergency management syndicates. - Prioritize startups innovating in AI-driven forecasting, resilient communications, and real-time analytics. - Stay ahead of regulatory and market shifts by subscribing to leading industry news and trend reports. The next unicorn may not just entertain or inform—it may keep Boston, and the world, connected and resilient when the next hurricane strikes.