Fresh Tech!TM Accelerator Executive summary (Concept Draft). ©2014-16 By Perry Andropolis .02b
One Line Pitch: To create a startup ecosystem in our region by developing & funding a cool, world class tech focused startup hybrid accelerator model, designed to seed about 20 startups over two classes (2 years) leveraging the ‘network effort’ for success.
Why Focus On StartUps? “New businesses account for nearly all net new job creation and almost 20 percent of gross job creation, whereas small businesses do not have a significant impact on job growth when age is accounted for.” Taken from Forbes article about Kauffman Foundation info. Link
What is a Business Accelerator? A 21ST Century version of a business incubator where funds (seed money) is directed to a group of technology focused startups. This in return for equity or warrants on equity on each one. In most cases the startups are chosen after making it through a filtering process then brought together under one roof where the ‘network effect’ and mentorship can be of great value leading to a demo day. A ‘demo day’ is a scheduled day of the conclusion of the ‘startup class’ as they are referred to where they present their progress and show future potential during the pitch to the original and possible new investors and others for consideration of additional investment at higher valuations. Note: Each startup we envision have from 2 - 5 people going at it. (2.35 is the avg. - from the Startup Factory)
Business Summary: The tech innovations continue to amaze many observers. And those deep into this space like noted VC Marc Andreessen says, to paraphrase - we are only in the first inning of what is possible with software. So for the foreseeable future, innovations and the startups bent on bringing those to life, will continue to mushroom into reality at an astounding pace.
Customer (Startup) Problem: Funding - many ideas die within the grey matter of which they were conceived. Lack of funding, lack of mentorship, lack of the network effect, ie being alone with your thoughts. Lack of Legal, IP and PR direction & help. From first hand experience - lack of geographical access to a ‘startup’ community. All of which will be addressed in our accelerator model..
Product/Services/Other possible sources of income:
Target Market:
High tech startups. Smart teams conjuring up the next big thing looking to accelerate their efforts. Capture the aura of the gist of the book “The Second Machine Age”, Zero to One & Maker for starters
Customers:
Many, many innovations useful to the human condition lie ahead. (Read current The Second Machine & Maker for example) Our founding team will look for startups whose efforts are aimed at a national or global audience/consumer. Other ‘parties’ that may be interested in our startups. Big companies are acquiring startup efforts - using this as a form of outsourced R&D. We are also aware that a significant number of startups and or startup teams are acquired as acqui hires. Significant companies look at this as brain power to be acquired and placed within an organization. We will be looking at efforts/solutions with a national or global visions generally.
Sales/Marketing Strategy: Utilizes global PR strategy and intense social media reach/tools to reach and create a large application, mentor & investor pool.
Business Model: Funding the Accelerator with 750k - 850k - (approx. - early numbers) held in trust or similar and deployed as required by business funding plan. Spreading the possible upside over funding approx. 20* startups with $seed money $___TBA* each over a two year - two class period. Some of the funds will be used for infrastructure cost. Possibly using a very attractive hospitality brand embedded within to raise the profile, attract even more apps and add value to the overall effort. This includes funding the overhead during this period and possibly beyond. Structure to be determined. Other possible sources of rev. & resources have been identified. TBA.
Competitors: Other existing accelerators around the world.
Competitive Advantage: Our incredible lakeshore region and specifically, Door County. Being one of the top 10 destinations in the U.S. we can leverage this and the very affordable cost of living. Along with regional, state & Fed. support. As a fairly early mover in the accelerator space (given it’s size) that should help attract more attention (Entrepreneurs in 10th tier city in size - but a 1st tier livable city launches an accelerator - good for PR) (5-8 years out there will be a lot more communities globally embracing this model. Why? Note: In the aforementioned book The Second Machine Age - all net new job growth comes from startups.) The ‘angels’ that live/vacation here as future round investors. We have a lot of things that attract the young and young at heart. The startup bug captures entrepreneurs of all ages and this model will let people participate in different ways. Layout all our region/area has to offer that should get young tech types attention.
Conclusion:
Why not here? It gets old hearing that the midwest is a fly over area between coasts where ’all’ the tech / good ideas come from. If a person is going to do this it needs to be done right. Digital resources and money can and does flow to and from anywhere - so why not here?
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Success probabilities and various scenarios (modeled from research of other accelerators) and financial projections from other revenue sources are being refined for those who want to learn more about committing resources.
Thanks for your time.
Interested or know someone that is? Let's talk.
To Quote Walt Disney. "The way to get started is to quit talking and begin doing."
Best regards,
Perry Andropolis
920.256.0644
Links to discover more about this model.
http://www.chicagotribune.com/business/ct-nw-israel-startup-nation-20140905-story.html#page=1 Chicago is benchmarking them…
Confidential & Copyrighted 2014/15/16 by Perry Andropolis Not an offering - just a draft discussion at this point. From the office of Andropolis’ Uncubed StudioM For Meaningful Innovation perry.magic@gmail.com 920.256.0644 .