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Session I - Seed Accelerators:
“Start-up Scourge or Super-charger?”
Monday July 29, 2013
General Assembly Seminar
Part of the “Show me the $$$$!” GA event series:
Insider perspective on fundraising and entrepreneurship
Tom Wisniewski
RosePaul Investments
Thanks to all who participated at the event last night @ GA NYC and a special thanks to our guest speakers:
Kamran Ansari, Greycroft Partners;
Brian Cohen, New York Angels ;
Charlie Kemper, Entrepreneurs Roundtable Accelerator;
Shai Goldman, 500 Startups;
Fred Cook, Moveline (TechStars Alum);
Jonathon Ende, SeamlessDocs (ERA Alum);
Heather Marie, 72Lux (500 Startups Alum)
-TW ([email protected])
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Agenda
I. Kick-off and Introduction
II. Panel with Accelerators (ERA, 500 Start-ups)
III. Panel with Investors (Greycroft, NY Angels)
IV. [Brief Networking Break]
V. Panel with Founders (Moveline, 72Lux, SeamlessDocs)
VI. More Networking/ Beverages………
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I. Kick-Off and Introduction
Show me the $$$$! Series: An Insider’s Guide.
Monthly series on the critical elements of successful start-up
development, fundraising and entrepreneurship.
Goal: make it a great, impactful event.
Leverage:
Interesting/Meaningful Topics
Present some prepared, well structure content
Get great experienced, successful “insiders” to share
there perspective
Include Networking (…and some beer and wine!)
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Tonight’s Focus
There are a lot of challenges in launching a start-up: the odds
appear to be heavily stacked against you.
Less than 100:1 will succeed
Its not all about a fantastic idea and great team. Two huge factors:
• Getting the necessary guidance, input, and access ….that allow
you to refine and build the business
• Raising the capital you need.
……..Media can make it look easy, but the reality is: it’s really
hard.
Accelerators: Seem to offer the keys to both.
• Lots of help: during the program, demo day, after
• Capital: Modest investment upfront, some follow-on(?) and….a
huge boost in raising capital from Angels/VC’s post
program.
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After B-school: joined a start-up management consulting firm Mitchell Madison
Group; focus on Strategy/Operations/IT for financial services, tech, outsourcing,
private equity/VC clients (1993 to 2000)
Walker Digital: helped set-up and run an early “internet incubator” (2000)
Independent Advisor / Turn-arounds: Advised VC and PE Firms on portfolio
company strategy and new investments; joined the management team of two
companies
Currently:
• Early stage investor and advisor to start-ups
• Member and director at New York Angels
Investor in:
• Moveline (Uber for the moving industry) --Techstars Alum;
• SeamlessDocs (“Adobe 2.0” internet document sharing) – ERA Alum
• DealFlicks ( “Hotel.com” for movie tickets) –500 Start-Ups Alum;
…..and ~10 other ventures that didn’t go through Accelerators,
Tom Wisniewski: My background
Born in NYC; grew-up in Montclair, NJ
Physics and Philosophy major undergrad
(Clark University); MBA at Tuck School
(Dartmouth)
1st Job: Programmer at Morgan Stanley then
moved to Investment Banking
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Sources of Investment: Seed Fundraising, Angels and VC’s
Stage (Pre-Round):
• Expected to
have:
• You and a pitch. • Well developed pitch
• Answers to “b-plan” questions
• Some product…
• Some traction….
• Significant variation among firms but….
Angel req. +:
- More Traction! Clients, users/stats,
more proof. E.g. “$100K monthly revs”
- …..Growth potential! $1B Industry,
$100M Rev
• Don’t Expect: • Product, Traction,
Team
• Proven business model, product
market fit (know it will change)
Who/what are
they?
• People you already
know, that trust you
• Individuals that are experienced
early stage investors
• A Firm. A group of professional
investors that raises, invests and
manages other people’s $
Angel InvestmentFriends and
FamilyVenture Capital
“You”
aka Bootstrapped
Earlier Stage Later Stage
Round Size $: • $10’s of K
to $100K
• $100’s of K
to $1M+
• $500K to
$1.5M
Investment Size $: $5K – $10’s of K • $25K – $75K • $250K-$750K
Valuation (Pre-
Mon):
• < $1 M • $1 – 5 M • $5-10 M
II. Start-up Life-Cycle and Fundraising
“Seed” VC “Traditional Series A” VC
• $5M-$15M
• $3M – $5M
• $10 – 25 M
“Seed”
Where do the Accelerators fit in?
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Accelerators: Some Stats
Stats from Seed-DB (www.seed-db.com):
• 171 “Seed Accelerator” Programs world-wide
• 2862 companies “accelerated”
• $2.5B raised (Includes all subsequent
rounds); $1.1B if we exclude Y-Combinator
• 148 Exits
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Name LocationDate
FoundedAccept.
Rate Funding CostCohort
SizeClass
Timing Class LengthFunded to Date
Examples of Graduates
Y Combinator Mountain View, CA
2005 2% $14K-$20K + $80K note
None 82 Jan-Mar, Jun-Aug
3 months 550 Reddit, Scribd, Weebly, Dropbox, Airbnb, Codecademy, 42Floors
TechStars Boston, MA; Boulder, CO; Chicago, IL; New York, NY
2007 <1% $18K + optional $100K convertible debt
None 8-13 Varies 3 months 162 Filtrbox, IntenseDebate, MadKast, Socialthing, Localcents, DailyBurn
500 Startups Mountain View, CA
2010 <2% $50K for 5% equity
$6K/founder, $3K/non-founder
25-35 Varies(NYC every 9 Mo. ?)
4 months 288 9GAG, InternMatch, 72Lux, Fitocracy
Dreamit Philadelphia, PA; Austin, TX; Israel; New York, NY
2008 N/A $5K + $5K for each founding member (up to 4)
None 10-15 Varies 3 months 95 MindSnacks, SCVNGR, SeatGeek, Notehall(acquired by Chegg),
Entrepreneur's RoundatableAccelerator
NY, NY 2011 1% $40K None 10 Jun-Sept, Jan-Apr
4 months 50 TripleLift, Stray Boots, numberFire
Accelerators: Some Stats
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So….what questions do you have?
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???
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Our guest speakers tonight:
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Kamran Ansari, Greycroft Partners
Brian Cohen, New York Angels
Charlie Kemper, Entrepreneurs Roundtable Accelerator
Shai Goldman, 500 Startups
Fred Cook, Moveline (TechStars Alum)
Jonathon Ende, SeamlessDocs (ERA Alum)
Heather Marie, 72Lux (500 Startups Alum)
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Thanks! Thomas Wisniewski
Contact Info
Email: [email protected]
LinkedIn: http://www.linkedin.com/in/thomaswis
Twitter: @thomaswis
This presentation: http://www.slideshare.net/Thomaswis/
Next event in the SMTM series:
Monday September 30th
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THANKS!
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Extra Slides
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Tom Wisniewski: Investor Profile Direct “Angel” Investor in Companies
• $25K-250K investments; Typical valuations: $1-5 Million,
• Typical Stage: at least some “product” done, some customer/sales traction
• Sector focus: Opportunistic generally within internet/software space;
- fair amount of Saas B2B, and consumer “marketplace” models, ecommerce enablers.
- NOT (or not much?): hardware, heathcare/pharma, cleantech
• NYC based: 50% investments in NYC area companies; total of ~80% NE overall (e.g
Boston, DC), 20% West Coast.
• Examples:
- Sociocast (social/behavioral big data analytics)
- LiveLook (Saas, live collaboration sales/service platform)
- Anvato (Ad insertion to live video streaming via proprietary machine vision)
- Moveline (Uber for the moving industry)
- SeamlessDocs (Saas, paperwork automation; “Adobe 2.0” internet document sharing)
- Movio (Digital “RedBox”; content delivery via “last 100 ft” of wifi internet)
- HeTexted (Relationship advice forum generating content, media opportunities)
- Wanderu (Kayak for ground transportation)
- DealFlicks (a “Priceline” or “Hotel.com” for movie theater tickets)
- iCharts (tool that enables engaging, sharable, embedible chart content)
Investor in Funds
• In addition to direct investments in start-ups, invest in VC and PE funds.
• Examples:
- Social Starts (Seed fund for start-ups leveraging the Social Web)
- Brooklyn Bridge Ventures (Charlie O’Donnell’s fund)
- Entrepreneurs Roundtable Accelerator (ERA Fund)
- Greycroft Partners (Venture Fund)
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