What are the Application Dates?
Early Application Deadline: 23 December 2012
Application Deadline: 9 January 2013
Interviews: 1 January 2013 thru 25 January 2013
Decision Date: 28 January 2013
What are the Program Dates?
Arrival in Memphis: 8 February 2013
Program Start: 9 February 2013
Investor Day: 16 May 2013
Program Resumes for Those Fundraising: 20 May 2013
Startup Wake: 15 August 2013
What are the Expectations for Teams?
–Moving to Memphis
–100% Focus on Your Startup
–Understanding the very demanding nature of our program
–Commitment to our process and method of starting up
–Saving enough “Dry Powder” to be in Memphis for 3 months after Investor Day
–Willingness and ability to sell your product or service
–Ability to build your product or service
Do you have any data to share?
Cohort Size: 6
Average Team Size: 2.5 Founders
Number of Graduating Teams to Date: 12
Number of Graduates Receiving Follow-on Investments: 5
Number of Graduates Still Alive, Working, and/or Bootstrapping: 9
For Founders, how does it work?
Highly motivated founders can apply to pitch Seed Hatchery by answering the simple questions here: http://www.seedhatchery.com/apply/. A subset of those that apply will be given a chance to impress our team with follow-on questions and interviews. Those that truly impress will enter an intense cohort program coupled with investment and mentoring. Though we make no guarantee we estimate that 6 or more ventures will be funded in each cohort.
What is the structure of the 90 day accelerator program and beyond?
The first 90 days of the program are divided into 3 units of 30 days. We kick-off with a weekend founders bootcamp followed by a mentor introduction night to begin mentor selection. Each Monday night all the teams will meet for reporting sessions. Once a week there will be a information session with a training purpose. There will also be social gatherings off and on throughout the program. Prospective angel investors, service providers, mentors, influencers, and community leaders are invited to attend these sessions. At the conclusion of the program, there will be a graduation day where all founding teams will present to an audience of angels, venture capitalists, and community leaders. After this investor day, we continue working with the teams directly for at least another 3 months to support their growth.
For Founders, what is the investment structure?
In return for our investment of both cash and mentoring, Seed Hatchery receives 6% of the founding level common equity in your startup. This is broken into two parts — 3% for the money and 3% for the bootcamp. This would place the post money calculation would give your company a $500,000 post money valuation. Additionally, we have you set aside another 4% of the founding equity in your business as options that you can use to incentive others including solid mentors to help you during the startup. You do not need to use all of these options but we encourage you to use them when appropriate for those that have earned it by helping you. Note that the cash investment may be spent any way the startups desire as long as it is in service of reaching milestones and you report periodically on your burn rate.
For Founders, why do you get mentors?
Our mentors come from a wide array of backgrounds and have seen success and failure first hand in their business career. In addition to business and startup acumen, our mentors provide domain expertise. Whatever your concept there is a strong chance that a couple of the mentors have had some expertise to accelerate your success. Mentors sharpen your concept and provide tough love when needed to insure founding entrepreneurs execute quickly and as correctly as possible.
What is the focus area of the accelerator?
If you have a technology based product or service (hardware or software usually) and the passion and energy to launch your venture, then this program is designed for you and your founding team.
Will you sign a non-disclosure agreement before I send in my application?
Sorry, we can’t sign non-disclosure or confidentiality agreements. This topic has been fairly well addressed by Brad Feld whom we respect tremendously, so we’ll direct you to his posts on this very topic for you to learn more: http://www.feld.com/wp/archives/2006/02/why-most-vcs-dont-sign-ndas.html
For Mentors, how does it work?
Mentors participate in activities throughout the program and also attend investor day where investment pitches are made by the startups. Mentors also may contribute to one or more individual startups in the capacity of either a lead mentor or supporting mentor. These mentors are responsible for stewarding the investment made by Seed Hatchery. Mentors operating on a specific startup receive options from those startups. If a mentor commits to a startup, it is necessary to see the startup through to the first angel or VC round.