« swipe left for tags/categories
swipe right to go back »
The Boulder TechStars program is in week three and the intensity level is high. The TechStars office is across the hall from ours at Foundry Group and it’s wild to see the level of activity ramp up during the three months that TechStars Boulder is in session.
I’m trying a new thing this program and doing a weekly CEO-only meeting. I’ve been trying to figure out a new way to engage with each program other than mentoring a team or two, and have been looking for a high leverage activity that I could do remotely for all of the other programs. My current experiment is an hour a week with all of the CEOs in a completely confidential meeting, but a peer meeting so each of them gets to talk about what they are struggling with to help solve each other’s problems as well as learn from each other.
We’ve done two of these meetings in Boulder and I love it so far. I’ll run this experiment for the whole program, learn from it, and iterate. If it works, I’ll scale it across all the programs.
Yesterday I also finished up my first set of 1:1 meetings with all of the teams. In my 1:1 meetings, I try to keep them very short – 15 minutes – and focus on what is “top of mind“. I learn more from this and can help more precisely than if I spent 30 minutes getting a generic pitch, which will likely change dramatically anyway through the course of TechStars. So each of these top of mind drills is “up to 5 minutes telling me about your company” and “10 minutes talking about whatever is top of mind.”
By the third week, I notice what I call “pitch fatigue” setting in. I think every entrepreneur should have several short pitches that they can give anytime, in any context, on demand.
- 15 seconds: Three sentences – very tight “get me interested in you” overview.
- 60 seconds: What do you you, who do you do it to, why do I care?
- 5 minutes: Lead with the 60 seconds, then go deeper.
- 15 minutes: Full high level pitch
- 30 minutes: Extended presentation that has more details
Bt week three, the teams are still fighting through getting the 15 second and 60 second pitch nailed. That’s fine, but there’s emotional exhaustion in even trying for some of them. The founders have said some set of words so many times that they are tired. The emotion of what they are doing is out of the pitch. Their enthusiasm is muted – not for the business, but for describing it.
Recently I was on the receiving end of a description from an entrepreneur, who has a great idea that I love, that had the emotional impact a TSA inspection at the airport. He was going through the motions with almost zero emotional content. At the end of it, I said one sentence - ”Don’t get sick of telling your story.” I then went deeper on what I meant.
He responded by email later that day:
Thanks for articulating what was going on in my head. I think I was getting burnt out from telling the same story to so many mentors. I need to stay focused and stick with the story that worked well the first 40 meetings. I also need to be careful that the lack of “freshness” doesn’t affect how passionate and energetic I come across. Timing for this realization couldn’t be better given our upcoming fundraising trip.
I’ve done an enormous amount of pitching and fundraising over the years. When we raised our first Foundry Group fund in 2007, I did 90 meetings in three months before we got our first investor commitment. By meeting 87, after hearing no a lot (we got about 30 no’s out of the first 90 meetings before we got a yes) I was definitely had pitch fatigue. But every time I told it, I brought the same level of intensity, emotion, optimism, and belief that I did the first time I told it. Today, six years later, when I describe what we are doing and why we are doing it, and why you should care, I’m just as focused on getting the message across as I ever have been. And I never get tired of telling our story.
I’m excited to join David Cohen and his team in announcing TechStars in Austin. From the TechStars blog:
“The Managing Director of TechStars Austin is Jason Seats. Jason is a “techie” and entrepreneur. Rackspace acquired his company Slicehost in 2008 and then made him VP of Engineering. Jason is an active angel investor and has been with TechStars since 2011 with two very successful programs under his belt as Managing Director. He brings amazing technical chops, founder experience and a strong network of his own. Jason is moving down the road from San Antonio to Austin and we’re confident that he will be a big part of growing both TechStars and the startup community in his new home.
TechStars will operate out of Capital Factory in downtown Austin. This beautiful space is “the most inspiring office space in Austin” for startups, and we’re happy that it’s our new home too. The amazing folks behind Capital Factory (Josh Baer and Bill Boebel) have played a critical role in bringing TechStars to Austin and we’re thankful for all of their support.”
Applications are open today and the final deadline is June 30th. Apply now. I look forward to meeting this new class of founders!
TechStars Patriot Boot Camp is an intense three-day program that will educate and mentor Veterans and Service Members to innovate, build technology companies, and create jobs. TechStars hopes that participation in the Patriot Boot Camp will be the catalyst for Veterans and Service Members to kickstart their company, find co-founders and advance as entrepreneurs. Veterans, spouses of Veterans, Service Members, or companies comprised of 50% or more Veterans are encouraged to apply to our second annual July 17-19 event in Washington D.C.
As an interesting note, participant Tak Lo from Patriot Boot Camp 2012 is now an Associate at TechStars in New York City and a participating company from Patriot Boot Camp 2012 - Nexercise - was recently accepted into the inaugural program of TechStars Chicago.
This event is made possible by awesome sponsors SoftLayer, Kauffman FastTrac, Slice of Lime, PivotDesk, Silicon Valley Bank, SendGrid, Galvanize, and George Washington University. The biggest thanks are due to these veteran entrepreneurs for their service to our country. Do you know a Veteran or Service Member that could benefit from a miniature TechStars experience? Please encourage them to apply.
Last week TechStars London was approved for the UK Entrepreneurs’ Visa. If you are accepted to TechStars London, you now automatically get the UK Entrepreneurs’ Visa.
The approval will allow TechStars London teams from outside of the EU to work in the UK for up to three years. After the three years, they can apply to extend their stay by a further two years if they want to continue living here. Furthermore after three years teams have the right to apply for permission to settle in the UK if their business has created at least 10 new full-time jobs in the UK. Partners and children of the teams can also apply for settlement.
As you likely know, I’ve been advocating for something like this in the US since 2009. Fred Wilson wrote a good post yesterday on the current state of Immigration Reform in the US which includes a summary of the recently introduced comprehensive immigration reform bill. It includes a bunch of things I’ve advocated for since I started paying attention to this in 2009, including a Startup Visa and a STEM Visa (or – in my language – “a Visa stapled to the diploma of every college graduate.”)
I hope we finally get something done in the US. In the mean time, Canada and the UK are being very forward looking about their immigration policy in the context of immigration. The US doesn’t have a monopoly on innovation – it’s time for us to get our act together on the immigration front. In the mean time, TechStars London applications are open!
This article originally appeared online at Inc.com in an article titled Government Shouldn’t Be In The Accelerator Business. I talk more about this and lots of other topics in my recent book Startup Communities: Building an Entrepreneurial Ecosystem in Your City.
As a co-founder of TechStars, I’m a huge believer in the mentor-driven accelerator model. But I don’t think government should be funding these accelerators, nor do I think they need to.
A good accelerator can be run in any city in the world for $500,000. Entrepreneurs with a compelling track record and approach should be able to easily raise, or even provide this capital. As evidence of this, there are already hundreds of accelerators in the U.S., without government funding, being run as entrepreneurial ventures for profit by entrepreneurs.
When we started TechStars in 2006, the idea of an accelerator was brand new. We funded the first TechStars program in Boulder in 2007 with $230,000. There were four investors – me, TechStars CEO David Cohen, David Brown, and Jared Polis. All four of us had been successful entrepreneurs and we decided to try TechStars as an experiment to help create more early stage start-ups in Boulder. We figured out the downside case was that we’d spend $230,000 and end up attracting 20 or so new, smart entrepreneurs to Boulder.
That first program went great and has already returned over two times our invested capital with several of the companies still having future value. We ran the second program in 2008, expanded to Boston in 2009, and adopted a funding strategy for each local program which we continue to use to this day. TechStars surpassed our wildest expectations and now runs over 10 programs a year for over 100 start-ups around the United States. We’ve begun expanding internationally with our first program running this summer in London. And there are many other accelerators around the world using the TechStars mentor-driven model that are members of the Global Accelerator Network.
All of this is privately funded. We’ve never taken a dollar of government funding, nor do we plan to.
While the amount of money required to run a program has increased from the original $230,000, it’s still well under $1,000,000 per program cycle. As a result, the amount of capital we need to raise to run a TechStars program is modest, and since we run it to make a financial return, it is actually an investment, rather than an expense. And, by being focused first on the financial return as well as playing a long-term game (we expect to be running TechStars accelerators for a long time), we are very thoughtful about how we allocate capital.
If entrepreneurs can’t figure out how to fund it, why should the government do it? That just seems like a situation where capital is going to be allocated poorly and the incentives won’t be tightly aligned.