Joshua Baer of OtherinBox Talks about the Capital Factory
Where are you from originally?
I grew up in Nashua, NH. It's basically a suburb of Boston, MA. I love New England, but I'm much happier dealing with a Texas summer instead of a New Hampshire winter!
What university did you go to?
I studied Computer Science and Information Decision Systems at Carnegie Mellon University in Pittsburgh, PA. The late 90's was a really fun time to be there - I felt like the Internet was sprouting up all around me. It was the kind of place where you could check a web page to see if the coke machine had any Dr. Pepper left and you regularly saw robots in the hallways.
What brought you to Austin?
I came here after graduating from CMU in 1999 to work in the incubator at Trilogy Software. I still am friends with and work with dozens of the people I met at Trilogy. I'm not the first person to credit Joe Liemandt for bringing thousands of smart, entrepreneurial technologists to Austin. Many of them stayed here and are running companies of their own now.
What is the idea behind Capital Factory?
First-time entrepreneurs want to ask questions of successful entrepreneurs. Successful entrepreneurs like investing in young entrepreneurs. Entrepreneurs of all kinds thrive on each other's passion. Capital Factory brings together first-time entrepreneurs with successful entrepreneurs in an intense 10 week summer program. Startups get $20,000 in cash, $20,000 in free stuff, and 20 successful mentors who work with them over the course of the summer to identify their first customers and secure their next round of financing if needed.
What need does it fulfill?
Gaps have formed in the traditional funding path for early stage companies. Many venture capitalists are moving towards bigger funds that invest larger amounts of money in lower risk companies that have already proven their model. Angel investors are banding together into syndicates that look more and more like venture capitalists. We think we can help to fill some of those gaps and then introduce companies to angel investor groups or venture capitalists at the right time.
How exactly will the process work?
Each week there will be a group session where one or more mentors presents to all of the companies and then there will also be one-on-one sessions with individual mentors. We have a good idea what the structure will look like, but we'll adapt the actual topics based on the companies that are selected and specific challenges they are facing.
Who is it for?
Most importantly, we want to get involved with companies that we can have the biggest impact on. After all, its not really about the $20,000 it’s about the 20 mentors who are going to spend time with the companies and help them to focus on the right priorities and with key introductions to customers, partners, employees and investors. If someone submitted a great company idea, but none of us had any real value add beyond the money, we'd probably pass on the deal and select another company that we thought we could really benefit from our advice and relationships.
We like lean companies that can get to profitability quickly and can scale rapidly. Most of us have technology backgrounds and while it is not a requirement, it is very likely that the companies we select will have technology components to them. We're happy to start with just an idea on a napkin, but we'll also work with companies that have some customers or angel investors and are now ready to scale their business.
What is the next step?
Applications are due this Friday, April 3 and so then we have about 2 weeks to work through more than 100 applications and select 10 finalists and 3 winners. Then its time to get to work!
What advice do you have for entrepreneurs?
If you are an entrepreneur starting a new company and want this kind of support, you probably should apply to a bunch of programs, see which ones you get accepted into, and select the one that has the mentors who you think can help your business the most.
Best regards,
Hall T.
Friday, April 3, 2009
Wednesday, April 1, 2009
Chris Ritchie of the Austin Inventors and Entrepreneur Association Talks about His Group
Chris Ritchie of the Austin Inventors and Entrepreneur Association Talks about His Group
Where are you from originally?
Sherman, Texas
What university did you go to?
St. Edwards University, Austin, Texas
What brought you to Austin?
I had family working at IBM and the lure of the lakes, music and high tech was just too much.
What is the idea behind your group?
The most common question I get is “hey, I have this great idea … now what?” Austin Inventors and Entrepreneurs Association (AIEA - http://austininventors.org) is a non-profit focused on helping the individual inventor and/or entrepreneur answer that question.
What need does it fulfill?
AIEA is focused on helping the individual inventor and/or entrepreneur take the next step in the process. No matter where they are in their venture.
What exactly does your group do?
AIEA provides both online and in person opportunities for individuals in the Austin area to get access to resources that will help them in their efforts to get from idea to product. Additionally, local subject matter experts volunteer their time to provide invaluable insight to topics such as patents, finance, organization, marketing and more. As a side benefit meetings are often a positive conduit to networking. AIEA is a pay-it-forward organization that believes in the spirit of giving back to the community.
Who is it for?
We are primarily focused on providing resources to the individual inventor and/or entrepreneur. Typically the majority of members are in the early stage of idea development in much need for answers to the many questions that plague a start up venture.
What was the most challenging aspect of starting up the group?
Idea folks are protective of their ideas and understandably so. There are more scams that legitimate help in the idea industry. Getting an idea sufficiently in to the light to get it to the next step is a significant challenge.
What is the next step for you and your group?
We are looking for better ways to bring idea developers together with product developers shopping for ideas.
What advice do you have for entrepreneurs?
The demand for new and innovative ideas is stronger than ever. Don’t be discouraged by economic rhetoric. Be determined to get your idea to the next step and be bold in seeking out those who might play a critical role in your success.
Best regards,
Hall T.
Where are you from originally?
Sherman, Texas
What university did you go to?
St. Edwards University, Austin, Texas
What brought you to Austin?
I had family working at IBM and the lure of the lakes, music and high tech was just too much.
What is the idea behind your group?
The most common question I get is “hey, I have this great idea … now what?” Austin Inventors and Entrepreneurs Association (AIEA - http://austininventors.org) is a non-profit focused on helping the individual inventor and/or entrepreneur answer that question.
What need does it fulfill?
AIEA is focused on helping the individual inventor and/or entrepreneur take the next step in the process. No matter where they are in their venture.
What exactly does your group do?
AIEA provides both online and in person opportunities for individuals in the Austin area to get access to resources that will help them in their efforts to get from idea to product. Additionally, local subject matter experts volunteer their time to provide invaluable insight to topics such as patents, finance, organization, marketing and more. As a side benefit meetings are often a positive conduit to networking. AIEA is a pay-it-forward organization that believes in the spirit of giving back to the community.
Who is it for?
We are primarily focused on providing resources to the individual inventor and/or entrepreneur. Typically the majority of members are in the early stage of idea development in much need for answers to the many questions that plague a start up venture.
What was the most challenging aspect of starting up the group?
Idea folks are protective of their ideas and understandably so. There are more scams that legitimate help in the idea industry. Getting an idea sufficiently in to the light to get it to the next step is a significant challenge.
What is the next step for you and your group?
We are looking for better ways to bring idea developers together with product developers shopping for ideas.
What advice do you have for entrepreneurs?
The demand for new and innovative ideas is stronger than ever. Don’t be discouraged by economic rhetoric. Be determined to get your idea to the next step and be bold in seeking out those who might play a critical role in your success.
Best regards,
Hall T.
Monday, March 30, 2009
RISE Conference – Austin Entrepreneur's Conference
Guest bootstrap blogger Nina Godiwalla Talks about the Rise Conference
I was one of the RISE (www.riseaustin.org) participants who went to so many sessions that I didn’t get around to lunch until 6pm when the sessions were wrapping up. I ran all around town, from the North side to the South side to the East side. The session topics and the people they attracted were so varied. There were 70 year olds and 20 year olds in the same sessions, all eager to learn how to blog and create their own webpage. The sessions were free, making it a boon for any typical, broke entrepreneur. For these few days, those who couldn’t afford to join many of the professional networks in Austin had a place to share their ideas and make like-minded friends. It was impressive to see how many women and minorities were at the sessions. Because people around us were fairly represented, it really felt like a community.
One of the unique elements was the conversations and emphasis on business with a purpose to help others. As one business student said in a session, “I’m always an outcast for having these social-minded views when I talk about business. It is great to be around others that care too.” I’ve been to many business conferences in other cities. Typically you choose whether you want to go to the Entrepreneur’s conference or the Social Impact conference. There may be a session or two within each conference where the topics overlap, but for the most part people that share the idea of profit with a purpose tend to be the minority. The opening and closing talks (Roy Spence & John Mackey) at RISE gave participants a framework by which to meld the two philosophies—purpose and profit.
I witnessed many people, including myself, with a new spark of hope and excitement, knowing that there is a community of leaders and peers around us to join in our entrepreneurial journey. There are a couple of us so inspired by the conference that we are coming up with ways to keep it alive throughout the year. It would be sad to wait another whole year. We are working on a couple ideas with the organizers.
Nina Godiwalla
I was one of the RISE (www.riseaustin.org) participants who went to so many sessions that I didn’t get around to lunch until 6pm when the sessions were wrapping up. I ran all around town, from the North side to the South side to the East side. The session topics and the people they attracted were so varied. There were 70 year olds and 20 year olds in the same sessions, all eager to learn how to blog and create their own webpage. The sessions were free, making it a boon for any typical, broke entrepreneur. For these few days, those who couldn’t afford to join many of the professional networks in Austin had a place to share their ideas and make like-minded friends. It was impressive to see how many women and minorities were at the sessions. Because people around us were fairly represented, it really felt like a community.
One of the unique elements was the conversations and emphasis on business with a purpose to help others. As one business student said in a session, “I’m always an outcast for having these social-minded views when I talk about business. It is great to be around others that care too.” I’ve been to many business conferences in other cities. Typically you choose whether you want to go to the Entrepreneur’s conference or the Social Impact conference. There may be a session or two within each conference where the topics overlap, but for the most part people that share the idea of profit with a purpose tend to be the minority. The opening and closing talks (Roy Spence & John Mackey) at RISE gave participants a framework by which to meld the two philosophies—purpose and profit.
I witnessed many people, including myself, with a new spark of hope and excitement, knowing that there is a community of leaders and peers around us to join in our entrepreneurial journey. There are a couple of us so inspired by the conference that we are coming up with ways to keep it alive throughout the year. It would be sad to wait another whole year. We are working on a couple ideas with the organizers.
Nina Godiwalla
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