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Minnesota’s First Tech Accelerator Now Taking Applications

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Re: Minnesota’s First Tech Accelerator Now Taking Applications

#21

Post by caseyallen »

projectileboy wrote: post #20
caseyallen wrote: post #9

Earlier quoted context omitted.

Hey guys, I'm cofounder of Project Skyway. Ownership is a sacred thing -- we don't tinker with that at all. The dev team takes no equity. After all, you're running the company, not us. We just help with the resources and motivation. The dev team in India (which my cofounder Cem has worked with for years) are merely a perk we provide to our companies. It's one benefit of many. If there's already a CTO in the company t…

It does. Being from MN, I really admire what you're trying to do, so I don't know how to ask this nicely, so I'll just ask it... how do you justify your terms being the same as YC when your value proposition is so much less? You can't possibly argue that your network is as valuable as YC's.

Your point on network value is an excellent one, one definitely worth challenging us on. I suspect almost no accelerator in the next 5 years will touch YC's network, especially since they're right in the heart of M&A-land.

However every accelerator, except for dopey government-run ones, needs an ROI. The numbers we came up with were our attempt at a happy medium. "Price"-wise, we can be lower than others (TechWildcatters, Shotput Ventures, SproutBox, Momentum) but we also add value and perks that few others do. We also have massive pent up demand in our region.

Value prop is a tough starting point because it means different things to different people. And you know what? Maybe we'll find out our terms aren't right and we'll pivot. Just like almost every entrepreneur does on pricing.

But then again, until you can find another accelerator that is open to single founders, open to non-technical founders, provides a dev team in India to support, and that has a selection process that includes a educational mini-bootcamp...then it's a tough comparison.

No, our network isn't 1/3 as valuable as theirs (although we will have a few mentors from SV). But we've got plenty of tech entrepreneurs banging down our door so I think, for now, we're on the right path to helping them change the world.

Re: Minnesota’s First Tech Accelerator Now Taking Applications

#22

Post by tednaleid »

kovar wrote: post #17
xal wrote: post #15

Earlier quoted context omitted.

Kudos to the launch. The makeup of the founding team thing will be the make or break. I've barely seen a recent success story of a startup where less then 100% of the founders were technical. It used to be possible but I expect that times have changed in this regard. Bluntly, this approach sounds wrong to me from an investment portfolio strategy point of view but I'm glad you are taking the risk and try it. I definit…

What is your sample size for your observation about 100% of the founders being technical? a) "startups" doesn't just cover high tech and social networking. b) There are a lot of quiet successes out there.

I agree, I think there are a ton of quiet success out there now.

I'm currently working for a Minneapolis startup (based in the skyway downtown coincidentally) that has raised 10M+ in VC funding in the health insurance area. None of the original 3 founders are technical.

You won't see us on techcrunch because health insurance isn't sexy, but we're having more of an impact on big businesses than 99% of what you will see on there.

Re: Minnesota’s First Tech Accelerator Now Taking Applications

#23

Post by xal »

kovar wrote: post #17
xal wrote: post #15

Earlier quoted context omitted.

Kudos to the launch. The makeup of the founding team thing will be the make or break. I've barely seen a recent success story of a startup where less then 100% of the founders were technical. It used to be possible but I expect that times have changed in this regard. Bluntly, this approach sounds wrong to me from an investment portfolio strategy point of view but I'm glad you are taking the risk and try it. I definit…

What is your sample size for your observation about 100% of the founders being technical? a) "startups" doesn't just cover high tech and social networking. b) There are a lot of quiet successes out there.

That's silly. We are discussing a tech accelerator here. But even if I accept your rebuttal I'd like to see the amount of Plumbing businesses that are bootstrapped by people other then plumbers.

Re: Minnesota’s First Tech Accelerator Now Taking Applications

#24

Post by xal »

wheels wrote: post #16
xal wrote: post #15

Earlier quoted context omitted.

Kudos to the launch. The makeup of the founding team thing will be the make or break. I've barely seen a recent success story of a startup where less then 100% of the founders were technical. It used to be possible but I expect that times have changed in this regard. Bluntly, this approach sounds wrong to me from an investment portfolio strategy point of view but I'm glad you are taking the risk and try it. I definit…

> I've barely seen a recent success story of a startup where less then 100% of the founders were technical. Groupon and Zyngas's founders aren't programmers. I'd say they're the two biggest hits of the last 5 years.

Fair enough but both of them are highly technical people. Not programmers but that's not the yard stick that I put down here.

Additionally it's not a good idea to use critical successes like that to extract any kind of lessons from. Groupon won the business plan lottery and found a real need in the market that wasn't being served. Zynga rode the coattails of facebook.

Obviously i'm not dismissing those companies accomplishments. The founders are idols to me.

Re: Minnesota’s First Tech Accelerator Now Taking Applications

#25

Post by mattbauer »

caseyallen wrote: post #10
MatthewDP wrote: post #3

Nice to see some more start-up activity in the mid-west!

Agreed! We thought the coasts were getting a little too cocky, hence, we knew we had to break out Project Skyway... http://j.mp/acceleratormap

Proven returns isn't being cocky. If your plan to compete directly with the coasts startup for startup, idea for idea I wish you the best of luck. I'm going to have to short your stock though. The Midwest at this time and possibly forever can't compete against the coasts for the types of startups project skyway is looking for. They have more quality talent for web/mobile/social/etc. They have more advanced networks and streamlined capitalization. They also have founders going on startup three, four, five and not all successful. If I had a web/mobile/social/etc startup or saw myself being a founder of one, the first thing I would do is move. The statistics of success dictate such.

Things brings up a problem see with project skyway. You are left funding founders not dedicated enough to their startups to move and give their startups the best chance. I would have serious reservations about investing in such a founder.

Incumbators were great even two years ago but now they really aren't as necessary. Thanks to Angel List you don't have to pay an accelerator for access to the network. In the world of Angel List an accelerator is actually a decelerator. If you have an idea for a startup, get a prototype done and submit it to Angel List. If it's got merit, you'll get interest. If not, move onto something else. I view project skyway more as a founder school that you pay with equity rather than an accelerator. I wish it would market itself as such.

The Midwest can kick the coasts' ass any day of the week but not with the type of companies project skyway wants. It's with the type of companies it specifically doesn't want.

I wish project skyway the best (that's Minnesota nice for I don't think it will work).

Re: Minnesota’s First Tech Accelerator Now Taking Applications

#26

Post by adora »

wheels wrote: post #16
xal wrote: post #15

Earlier quoted context omitted.

Kudos to the launch. The makeup of the founding team thing will be the make or break. I've barely seen a recent success story of a startup where less then 100% of the founders were technical. It used to be possible but I expect that times have changed in this regard. Bluntly, this approach sounds wrong to me from an investment portfolio strategy point of view but I'm glad you are taking the risk and try it. I definit…

> I've barely seen a recent success story of a startup where less then 100% of the founders were technical. Groupon and Zyngas's founders aren't programmers. I'd say they're the two biggest hits of the last 5 years.

Incorrect, at least one of Zynga's co-founders (Justin) is a programmer -- though he's probably not doing much of that anymore. One of the common misconceptions is that Zynga has only one founder ... it actually has many.

But I get the point you're making and it's still valid.

Re: Minnesota’s First Tech Accelerator Now Taking Applications

#27

Post by domodomo »

mattbauer wrote: post #25
caseyallen wrote: post #10

Earlier quoted context omitted.

Agreed! We thought the coasts were getting a little too cocky, hence, we knew we had to break out Project Skyway... http://j.mp/acceleratormap

Proven returns isn't being cocky. If your plan to compete directly with the coasts startup for startup, idea for idea I wish you the best of luck. I'm going to have to short your stock though. The Midwest at this time and possibly forever can't compete against the coasts for the types of startups project skyway is looking for. They have more quality talent for web/mobile/social/etc. They have more advanced networks a…

Although I hope Project Skyway succeeds, I think your perspective is interesting.

The Midwest can kick the coasts' ass any day of the week but not with the type of companies project skyway wants. It's with the type of companies it specifically doesn't want.

By this you mean companies that actually charge for their product, right?

Re: Minnesota’s First Tech Accelerator Now Taking Applications

#28

Post by rdouble »

domodomo wrote: post #27
mattbauer wrote: post #25

Earlier quoted context omitted.

Proven returns isn't being cocky. If your plan to compete directly with the coasts startup for startup, idea for idea I wish you the best of luck. I'm going to have to short your stock though. The Midwest at this time and possibly forever can't compete against the coasts for the types of startups project skyway is looking for. They have more quality talent for web/mobile/social/etc. They have more advanced networks a…

Although I hope Project Skyway succeeds, I think your perspective is interesting. The Midwest can kick the coasts' ass any day of the week but not with the type of companies project skyway wants. It's with the type of companies it specifically doesn't want. By this you mean companies that actually charge for their product, right?

They list the types of companies they don't want:

Bad Fit: Lifestyle companies. Consulting companies where the pricing model is tied to hourly labor. Anything with a hardware component (i.e. WakeMate or PedalBrain). Med device. Oil rigs in The Gulf.  You get the picture.

Re: Minnesota’s First Tech Accelerator Now Taking Applications

#29

Post by domodomo »

rdouble wrote: post #28
domodomo wrote: post #27

Earlier quoted context omitted.

Although I hope Project Skyway succeeds, I think your perspective is interesting. The Midwest can kick the coasts' ass any day of the week but not with the type of companies project skyway wants. It's with the type of companies it specifically doesn't want. By this you mean companies that actually charge for their product, right?

They list the types of companies they don't want: Bad Fit: Lifestyle companies. Consulting companies where the pricing model is tied to hourly labor. Anything with a hardware component (i.e. WakeMate or PedalBrain). Med device. Oil rigs in The Gulf. You get the picture.

My bad for not noticing this. Thanks.

Re: Minnesota’s First Tech Accelerator Now Taking Applications

#30

Post by yesimahuman »

MatthewDP wrote: post #3

Nice to see some more start-up activity in the mid-west!

I think it's worth mentioning that another accelerator has sprung up in the Milwaukee area (http://spreenklertalentlabs.org/). Also Madison, WI has some great up and coming startups and existing companies.

I do agree with other posters that the tech energy just isn't the same in the Midwest. When I went and visited SF for a YC interview, I felt something different and I really enjoyed it.

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