Not an Incubator, Not an Accelerator
The Tech Launch Center concept was formed by gaining a deep understanding of the various types of incubators, accelerators, YCombinators that have demonstrated success in helping grow successful companies to then defining a business model that would incorporate as much as the positive of all the models together. Think of is as the TechStar/YCombinator on steroid and for all of us. Check it out:
Not an Incubator, Not an Accelerator
To help explain the differences, imaging asking a "manager" at the TLC, at YCombinator, and at an incubator or a co-location facility what they all bring to the table. It would read something like this:
Tech Launch Center – We start with the basics of cool space, low rent, great amenities, no long term lease and complete expansion/contraction flexibility within our 150,000 sq ft facility [space]. We create a true melting-pot community of like minded people by focusing on having 80% of the startups in the center leverage information technology/software as the foundation of their innovation. It doesn’t really matter is you are webtech, fintech, edutech, cleantech as long as software is core to the innovation you bring to market. The equation is simple: software is how you change the world then you are in [like minded community]. We do not have any other “admission process” though we expect that you will work hard to "launch" your company... Every two months we’ll take a pulse of your progress so we can help align the resources you may need to grow and succeed. If you somehow find yourself spinning around then either we can help you identify the right resource, mentor or you may want to ask yourself if TLC is the right place. The center is staffed with knowledgeable directors to guide you have access to a wide array of independent third party professionals in almost every field (HR, consulting, marketing, outsourcing, etc.) and you may chose to work with them or not. They are here for you, they are tenants with either office hours or are permanently on site [access to resources]. With that foundation we add the critical ingredient of access to capital several ways such as connecting with angels and VCs through organized events, pitch days, etc. plus we offer to give you $20K upon approval of your business plan by a review board of professionals in your field in exchange for equity (you are free to take the $20K or not) and when you close your qualified round(s) (angel/VC) we will participate up to $250K in the first raise and up to $350K in the second raise at exactly the same terms as your round [access to capital].
YCombinator/TechStar – We have a deep track record of breeding successful companies in a variety of industries and you'll get to meet the most recognized names in entrepreneurship. As a result we screen diligently the companies that will integrate our program and only those we feel super confident that they've got it and we can help them succeed make it. We also understand your need to make a living so we’ll give you +/- $20K in exchange for 5 – 6% of the company and you’ll integrate our cool space. We will not only transfer our knowledge and expertise but we will bring industry experts and mentors to further assist you. The program is intense and after three months you should be ready to be on your own. We’ll help you find space and stay in touch as you are part of the club of graduating companies, important for your networking efforts. During the program we will make sure that you are exposed to the right funding sources and you will likely get funded. (At YCombinator, super angel Milner will invest $150K in every YCombinator graduating company, a plus).
Incubators – We understand your field, we’ve been there before and we think you may have a chance to succeed otherwise we wouldn’t be talking. We will transfer our knowledge and expertise to give you a better chance to succeed and get funded. We have relationships with some service providers and angels/VCs and will make introductions when needed. We will also host you at a very low cost in our cool offices and to help you pay for our consulting services we take some equity as part of the total compensation package. When we both think that we have maximized the relationship we both move on.
Co-Working Space - We have cool office space, you have no long term lease, you are ready to get started with connections, etc. and we endeavor to bring peers in your industry to facilitate exchange and learning. As we spread the cost of the space across many folks it is affordable and we can make it even more affordable by take some equity up-front. When you have outgrown the space you move on. We really make space available to you so we don’t really help you get funded, find the perfect resource, we don’t provide consulting but with the other like minded folks in the same space you'll get guidance as best as we can.
Tech Launch Center – We start with the basics of cool space, low rent, great amenities, no long term lease and complete expansion/contraction flexibility within our 150,000 sq ft facility [space]. We create a true melting-pot community of like minded people by focusing on having 80% of the startups in the center leverage information technology/software as the foundation of their innovation. It doesn’t really matter is you are webtech, fintech, edutech, cleantech as long as software is core to the innovation you bring to market. The equation is simple: software is how you change the world then you are in [like minded community]. We do not have any other “admission process” though we expect that you will work hard to "launch" your company... Every two months we’ll take a pulse of your progress so we can help align the resources you may need to grow and succeed. If you somehow find yourself spinning around then either we can help you identify the right resource, mentor or you may want to ask yourself if TLC is the right place. The center is staffed with knowledgeable directors to guide you have access to a wide array of independent third party professionals in almost every field (HR, consulting, marketing, outsourcing, etc.) and you may chose to work with them or not. They are here for you, they are tenants with either office hours or are permanently on site [access to resources]. With that foundation we add the critical ingredient of access to capital several ways such as connecting with angels and VCs through organized events, pitch days, etc. plus we offer to give you $20K upon approval of your business plan by a review board of professionals in your field in exchange for equity (you are free to take the $20K or not) and when you close your qualified round(s) (angel/VC) we will participate up to $250K in the first raise and up to $350K in the second raise at exactly the same terms as your round [access to capital].
YCombinator/TechStar – We have a deep track record of breeding successful companies in a variety of industries and you'll get to meet the most recognized names in entrepreneurship. As a result we screen diligently the companies that will integrate our program and only those we feel super confident that they've got it and we can help them succeed make it. We also understand your need to make a living so we’ll give you +/- $20K in exchange for 5 – 6% of the company and you’ll integrate our cool space. We will not only transfer our knowledge and expertise but we will bring industry experts and mentors to further assist you. The program is intense and after three months you should be ready to be on your own. We’ll help you find space and stay in touch as you are part of the club of graduating companies, important for your networking efforts. During the program we will make sure that you are exposed to the right funding sources and you will likely get funded. (At YCombinator, super angel Milner will invest $150K in every YCombinator graduating company, a plus).
Incubators – We understand your field, we’ve been there before and we think you may have a chance to succeed otherwise we wouldn’t be talking. We will transfer our knowledge and expertise to give you a better chance to succeed and get funded. We have relationships with some service providers and angels/VCs and will make introductions when needed. We will also host you at a very low cost in our cool offices and to help you pay for our consulting services we take some equity as part of the total compensation package. When we both think that we have maximized the relationship we both move on.
Co-Working Space - We have cool office space, you have no long term lease, you are ready to get started with connections, etc. and we endeavor to bring peers in your industry to facilitate exchange and learning. As we spread the cost of the space across many folks it is affordable and we can make it even more affordable by take some equity up-front. When you have outgrown the space you move on. We really make space available to you so we don’t really help you get funded, find the perfect resource, we don’t provide consulting but with the other like minded folks in the same space you'll get guidance as best as we can.