Connect with us

Business

Meet Daniel Newman, CEO Of Dandy: The Tech Startup Spearheading The “Live” Movement In Social Networking

mm

Published

on

Just three short years ago, Newman began his journey as a full-time CEO of his very own tech startup named Dandy. He created the company with his partner and co-founder, Leor Massachi, while the two were seniors in college. We’ve got the full scoop on how Newman went from a Real Estate Development student to a full-time entrepreneur, all before earning his undergraduate degree.

Newman was born and raised in Beverley Hills, CA. Although he’s mainly American, he takes pride in inheriting a Persian background from both his mother and father. Early on in his younger years, he became interested in the various aspects of business and how they were created. He also enjoyed learning about the Israeli economy and the country’s positive outlook on young people developing their own startup companies.

When Newman got to high school, he became heavily involved in extracurricular activities and always did well in class. Not only was he named Senior Class President, but he was also involved in several sports and school clubs. As if that weren’t enough on his plate at 17, he also had the opportunity to get a taste of what it was like to build a business when he founded his own tutoring company during his junior year. He saw an opportunity arise when the younger kids in grades K-8 were complaining about their tutors being too old and not up-to-date with the material. Brilliantly, Newman asked some of his friends if they wanted to earn some money tutoring the students, and the rest was history. The company took off instantaneously, and Newman kept it running until he graduated in 2015.

Once he reached college, the grind continued. Newman decided to pursue a degree in Real Estate Development at the University of Southern California. Although he was indeed partially interested in the real estate portion of the program, he was far more captivated by the school’s innovative take on technology and its multifaceted ability to influence new businesses. At that point, he began to understand the building blocks of a tech startup, and he fell in love. Along the way, he met several friends, mentors, and executives that taught him the dos and don’ts about the complicated world of Silicon Valley. But regardless of the dire risks he was advised of, he knew his ultimate goal would be to someday establish a startup company of his own.

In the meantime, Newman founded his second small business with his then-roommate and best friend, Leor Massachi. The two college students created a design agency that helped businesses market toward the Gen Z demographic via custom-made interactive Geofilters on Snapchat. At the time, the social networking app had just begun allowing users to publicly submit Geofilters for a fee, but it had not provided any tools or instructions on how to create them. Due to the high design skillset and intricate strategy required for the process, Newman and Massachi saw it as a business opportunity and proceeded to create a company named Geocasion. Although the business only lasted a few months, the experience proved essential for what followed for these two college students. In addition to founding Geocasion, Newman also founded USC’s TAMID Tank event during his sophomore year, which is the school’s equivalent to the popular television show, Shark Tank. The competition was created to provide students with a real-life experience of pitching their startup concepts to big-name investors and venture capitalists. Their first event filled an auditorium of 500, and since then, TAMID Tank has held the event annually. The organization also named Newman their Vice President of Operations.

But things changed in 2018 when Newman’s roommate suggested the idea of creating a dating app for millennials and gen Z’s unlike the existing ones on the market. After sitting and brainstorming for hours in their dorm, they came up with a concept that was far too tangible to pass up. They wanted to create a version of a dating app that would mimic two people meeting in person for the first time. Users would log onto the app once it went “live”, and they would have an allotted time to attempt to find their match and start a conversation. Once two users established they were interested, they’d be transferred into a three-minute video call where they could formally introduce themselves and decide whether or not to move forward with communication off the application. They called the app Dandy and instantly began searching for the perfect engineers to develop the product. 3 months later, the app launched its beta testing.

Dandy blew up all over USC, and eventually, all over Los Angeles. People were excited to try this new version of virtual dating and claimed that it was a “magical” app since it cut around the BS and got straight to the point of building new relationships. At this point, Newman and his Massachi began to pitch Dandy to investors in hopes to raise funds for the app’s future development. After hearing 117 no’s, they received their first yes, as well as their first check from an investor. Once the first came, many others followed, and soon enough Dandy has fundraised over $3.3 million in a matter of months from investors involved in companies such as Uber, Airbnb, Snapchat, and Facebook. Newman took over all finance and logistic aspects of the company while Massachi handled the marketing strategy and creative.

Things were running smoothly until word of a pandemic began to consume the news in February 2020. The two business owners called an emergency meeting and decided it was the perfect time to rebrand Dandy into something more applicable to the possible consequences of a national pandemic. In just a few hours, they came up with the idea for Zoom University– a virtual dating app with the same “live” concept of Dandy, but with two-on-two video calls resembling that of a double date. Since some users had commented that Dandy could become stressful and awkward during the short video calls, the founders hoped that having a user bring a friend would help turn the tension into fun. The next day after the meeting, the team had a web MVP of Zoom University uploaded and a rough draft of the app immediately went live. In honor of their first creation, they decided to keep the name of their now product-based startup company as Dandy.

Since then, Zoom University has gained traction all over the internet; including Tiktok, which had a video about the app hit impressions of over 2.5 million views. Users were scrambling to get their hands on this new dating app. In just a matter of weeks, a waitlist of thousands of users began to accumulate while the Dandy teamed continued to finalize the details behind the app that was only originally meant to stay live for a week. Positive feedback came pouring in from users, and eventually, the application broke records as it made it through the Top 10 Best Social Networking Apps on the Apple Store, coming in at #9.

Four businesses and two successful startups later, 23-year-old Newman says his success has come from knowing how to take high-level concepts and applying them to a realistic, practical lens. Although his achievements have skyrocketed over the years, he shares that the work has only just begun. He and his partner are currently working with investors on their next top-secret product that is reckoned to top all their prior inventions and take the market by storm once again. Details cannot yet be disclosed, but we wait eagerly to see how a few college seniors will continue to dominate the startup world with their commitment and dedication to changing the world through the use of advanced technology.

The idea of Bigtime Daily landed this engineer cum journalist from a multi-national company to the digital avenue. Matthew brought life to this idea and rendered all that was necessary to create an interactive and attractive platform for the readers. Apart from managing the platform, he also contributes his expertise in business niche.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

How Technology Drives Value Creation in Private Equity

mm

Published

on

How technology drives value creation in private equity is now one of the most actively debated topics among institutional investors and fund managers. A decade ago, technology was largely a cost center in PE-backed companies. Today it sits at the center of margin improvement, revenue growth, and exit multiple expansion. Firms that figured this out early are generating better returns with less reliance on financial engineering.

The shift happened for a practical reason. As interest rates rose and deal multiples compressed, financial leverage stopped doing the heavy lifting. Operational improvement became the primary value creation lever. Technology accelerated what was possible within the ownership period.

How Technology Drives Value Creation in Private Equity Operations

Operational improvement through technology produces the most measurable results. PE firms apply technology tools to reduce costs, increase throughput, and improve decision-making speed inside their companies.

Digital Process Automation in PE-Backed Companies

Manual processes in back-office and production functions carry real costs. They consume labor, generate errors, and slow down the information flow that management teams depend on. Automation tools eliminate these costs without requiring headcount reductions that disrupt company culture.

The most impactful automation deployments in PE-backed operations include:

  • Accounts payable and receivable automation that compresses billing cycles and reduces days sales outstanding
  • Production scheduling software that reduces downtime and improves throughput in manufacturing environments
  • Inventory management systems that cut carrying costs by aligning purchasing with real-time demand signals
  • Quality control automation that reduces defect rates and warranty claims in product-based businesses

ZCG Consulting (“ZCGC”) works with companies across industrials, manufacturing, packaging, and consumer products to identify and implement automation programs tied to specific financial outcomes. The approach connects technology investment to measurable margin improvement rather than treating automation as a general upgrade.

Data Infrastructure as a Value Creation Tool

Many PE-backed companies arrive under new ownership with fragmented data systems. Different departments use different tools. Reporting requires manual consolidation. Leadership makes decisions with incomplete information.

Fixing that infrastructure creates immediate value. Integrated data systems give management teams real-time visibility into revenue, cost, and operational performance. That visibility accelerates decisions and surfaces problems before they become material.

James Zenni, founder and CEO of ZCG with over 30 years of capital markets experience, has consistently emphasized that information quality drives investment performance. That view shapes how ZCG approaches technology investment across the companies in its portfolio.

Technology Drives Value Creation in Private Equity Through Revenue Growth

Cost reduction gets most of the attention in PE operational improvement, but technology also drives revenue growth. The mechanisms are different, and they compound differently over a hold period.

E-Commerce and Digital Customer Acquisition

Companies that sell primarily through traditional channels often leave significant revenue on the table. Adding e-commerce capabilities or investing in digital customer acquisition expands the addressable market without proportional cost increases.

PE firms that invest in digital revenue channels generate higher growth rates during the hold period. That growth rate difference translates directly into exit multiple expansion.

Revenue growth technology applications in PE-backed companies include:

  • E-commerce platform buildouts that open direct-to-consumer channels alongside existing wholesale relationships
  • Customer relationship management systems that improve retention and increase repeat purchase rates
  • Digital marketing infrastructure that lowers customer acquisition costs through better targeting and attribution
  • Pricing optimization tools that identify margin improvement opportunities without volume loss

Technology-Enabled Customer Experience Improvements

Customer retention is cheaper than customer acquisition. Technology investments in customer experience, service speed, and product quality consistency reduce churn. Lower churn produces more predictable revenue. More predictable revenue supports higher exit valuations.

ZCG deploys Haptiq Technologies and Solutions, its 300-plus-person technology division, to support digital transformation across its companies. The platform was founded 20 years ago and manages approximately $8 billion in AUM. It brings implementation resources that most individual companies cannot afford to build internally. That capability gives ZCG’s companies faster access to technology improvements at lower execution risk.

Building Technology Capability Within PE-Backed Companies

Technology investment during the hold period creates value in two ways. It improves financial performance during ownership. It also makes the business more attractive to the next buyer.

Strategic buyers and later-stage PE funds pay premium multiples for companies with modern technology infrastructure. A business with integrated systems, clean data, and digital revenue channels commands a better price. A comparable business running on legacy platforms does not.

The ZCG Team structures technology investment as part of the initial value creation plan for each company. Priorities get set at entry based on the gap between current capability and acquirer expectations.

This pre-sale positioning approach changes how technology investment gets funded and sequenced during the hold period. Projects that improve financial performance and exit readiness simultaneously get prioritized. Projects with long payback periods that do not improve the sale narrative get deferred.

How technology drives value creation in private equity is ultimately about execution discipline. The tools matter less than the clarity of the financial objective each technology investment must achieve.

Continue Reading

Trending