By guest authors Irina Patterson and Candice Arnold David: One of the things that is I think unique about TechStars is our incentive structure. We are like a co-founder. So, the pitch to the entrepreneur is, If you could have a co-founder for 6 percent of your common stock who had this sort of network
By guest authors Irina Patterson and Candice Arnold Irina: How do you conduct your due diligence? David: With 600 companies, and you’re picking 10 and investing little money and mostly time, diligence is mostly about the people. Again, we know half of them are going to change their ideas. So, we don’t really get into
By guest authors Irina Patterson and Candice Arnold Irina: What are your mentors’ relationships with the companies? Is there compensation involved? David: No. No compensation. Many of them will go on to be investors or advisors long term. That’s the natural outcome. At the start of the program, the mentors work for free. The reason
By guest authors Irina Patterson and Candice Arnold Irina: How many companies have you incubated? David: We’ve now done 81 companies. We’ve operated for four years in Boulder, two years in Boston, one year in Seattle, and it’s our first year in New York. We’re not expanding anymore. If you add all those up, about
By guest authors Irina Patterson and Candice Arnold I am talking to David Cohen, the founder and CEO of TechStars. Irina: Hi, David. Let’s start with a brief overview. David: I’m the founder and CEO of TechStars, which is a mentorship-driven startup accelerator for Internet companies. Tech Stars funds 10 companies at a time in
By guest authors Irina Patterson and Candice Arnold Chris: The board of advisors for each company enrolled will include two LaunchBox partners and two to three outsiders, who will meet every week for an hour and help to drive this company through the 12-week program. It’s really great. I sit in on every one of
By guest authors Irina Patterson and Candice Arnold Irina: Do you announce in a press release or on the Web that the next program session open, and companies start applying? Chris: That’s correct. We do some outbound marketing. We get some mentions in the technology and entrepreneurial press. We’ve run for three years now. There’s
By guest authors Irina Patterson and Candice Arnold Irina: What would be the ideal company to have in your incubation program? Chris: For the most part, first-time entrepreneurs who have a reasonably mature concept of what they want to build in a fairly large market or large market opportunity; something where the value is [so]