7 ms·

Minnesota’s First Tech Accelerator Now Taking Applications

57 points by shotgun 16y ago

shotgun 16y ago
Direct Link: http://www.ProjectSkyway.com http://www.ProjectSkyway.com
MatthewDP 16y ago
Nice to see some more start-up activity in the mid-west!
- caseyallen 16y ago
  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 http://j.mp/acceleratormap
  - mattbauer 16y ago
    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).
    - domodomo 16y ago
      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?
      - rdouble 16y ago
        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.
        domodomo 16y ago
        My bad for not noticing this. Thanks.
    - caseyallen 16y ago
      Hey Matt, nice to see you chiming in. Appreciate the thoughts. You say "You are left funding founders not dedicated enough to their startups to move and give their startups the best chance." Interpreted another way: everyone not smart enough or driven enough to move to the Valley we'll be stuck with. Second raters. But you're missing the point: Is this pool still good enough? In the pool of 5,000 rejected YC and TS applicants per year are there any winners? We think so. We think there are a lot. Chicago is a far cry from SV or NYC yet a full half of Accelerate Labs' last class* went on to raise an impressive angel round. 50% follow on funding is nothing to sneeze at no matter how you measure it. Most accelerator programs cross their fingers for that. You say "Thanks to Angel List you don't have to pay an accelerator for access". You just made raising a round leveraging AL sound really easy. You've found success with it -- is it really that easy? But even so, how do you think companies that are a tad too early for that going to maximize their chances of getting to that point? A Pedal Brain c. 2009? You bring up good points, and I think that they lead to the fact we appear to be "just another YC". Stay tuned. This is just our first class (what we call a cycle). In 2012 and beyond we'll be focusing much more on niche cycles. Ones that are absolutely perfect for this ecosystem. See this year merely as our test drive, but we know we're not perfect. Factor that in before you short us into the ground. =) Thoughts welcome. *http://www.exceleratelabs.com/portfolio/ http://www.exceleratelabs.com/portfolio/
- yesimahuman 16y ago
  I think it's worth mentioning that another accelerator has sprung up in the Milwaukee area (http://spreenklertalentlabs.org/ 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.
crawdad1313 16y ago
This is a long time coming. Project Skyway has the coolest selection process ever for an accelerator plus they don't require a technical co-founder because they are providing every single team 2 full-time developers.
- projectileboy 16y ago
  I don't think I understand... Do the full-time developers that are provided become partners?
  - deleted 16y ago
    [deleted]
  - caseyallen 16y ago
    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 then great, he can focus on what's core and have the offshore team work on secondary stuff. If it's a team of 3 business guys who have the right approach and the right knowledge then here's their chance to get the prototype figured out and raise that first bit of money to plow into a full time developer. Make sense?
    - rdouble 16y ago
      Do you have to use the offshore dev team?
      - caseyallen 16y ago
        No. Heck, we might not have any of our companies interested in going that route. But the option's there and we'll have a BA at their disposal. How many business minded entrepreneurs do you know that couldn't manage a contract developer if his life depended on it? We teach them how. The bigger point here is that for the first time ever guys who are non-coders but have domain expertise and the ability to take the product to market now have an option. Every other accelerator will slam their door in your face. We're pretty pumped about this. Having a tech cofounder is massively helpful, but we don't feel the lack of one discounts your value to zero.
jrubinovitz 16y ago
I love how detailed their website is. They know exactly what they're looking for, who's companies they can make a difference with, and they're upfront about it. I'm really interested to see who comes out of this Accelerator since they're so focused.
jrockway 16y ago
Now that the Tevatron is being decommissioned, perhaps we can reuse it as a "tech accelerator". One stream will be VCs at 512GeV, and the other stream will be people with ideas for Facebook clones. Then we just aim them at each other, and suddenly the HN frontpage will have 1TeV less annoyance. What I meant to say is: "tech accelerator" is a dumb name.
paylesworth 16y ago
Good luck guys! It's nice to see that there's a tech / startup scene getting going in Minnesota.
japherwocky 16y ago
From their application: "Each member must have a moderately full [LinkedIn] profile with a minimum of 2 recommendations and 50 connections." Is this a thing now?
- crawdad1313 16y ago
  It actually is "a thing" now...or at least it is for us (Project Skyway). We definitely questioned ourselves as to why we might want to include something like this. In the end, we feel it is a proxy for one's dedication to develop one's network. Certainly it is not the only measure by which one could reasonably judge someone's ability to have become involved in a community and it may not even be the right one, but social networking is a valuable asset and is a tool upon which many of us rely as part of an overall strategy to forward our business' goals. Plus, because we don't have a crystal ball into which we can peer to ascertain the kinds of networks and organizations our founders have chosen to become involved with, this gives us some information that we might otherwise not be able to get. In the end though, this is just one small piece of a bigger puzzle that we are trying to construct which will ultimately tell us a lot about the people that we will be working with and giving money to. Project Skyway is about the people, more than just the idea, because people run companies; people succeed or fail; and people are the most valuable asset (or the greatest liability) in any early stage company. We are looking for kick-ass PEOPLE with kick-ass ideas because without one, the other doesn't matter.
  - japherwocky 16y ago
    With all due respect, consider that I am a tech guy with business sense, trying to get seed level funding solo in the Midwest. LinkedIn represents all the bullshit I wish I could skip in the startup scene. LinkedIn is all the corporate politics and multi-tiered organizational madness I am trying to escape from by launching a startup. So on the one hand, I feel like I am the prime demographic you should be trying to attract and recruit, but that LinkedIn requirement, combined with the "you don't need a tech guy" stance; it smells like a bullshit factory.
    - 16y ago
bugsy 16y ago
First point. $6000 in funding that comes with all these restrictions and gives away 9% of ownership is a terrible deal. It values your company at only $67,000. If your company is only going to be worth $67,000 or less you should stop what you are doing right now and get a job working in services or retail. On the other hand, if your company is worth much more than $67k, then this is not a good deal at all. VCs are not going to invest unless they think the company will be worth much more than $67k. Second point. If you need $6000 and somehow have not managed to save $6000 in the bank working as an engineer or designer then you should also reconsider whether you have the skills to create a successful tech company out of nothing. Third point. If you can't get a credit card with a greater than $6000 limit because of poor credit, please consider whether your financial skills are conducive to running a business. Summary. If $6000 is what you need to launch your company, borrow the money from mom, sell your car, or get a job for a couple months and save it.
- eel 16y ago
  In regards to the first point, note that it's $6000 per founder as well, so they are investing between $6000 and $30000 per company. The amounts seem to be in line with other tech accelerators. Also, the hope that these tech accelerators / incubators seem to have is that the money is only a small part of the value that they bring to the startup. The mentorship and connections that they will supposedly bring could be worth much more than the seed funding. That said, since we don't know their ability to bring in good mentors and connections/investors, it might not be a good idea. So I kind of agree with you there.
- crawdad1313 16y ago
  Bugsy, First point: Then don't apply. Second point - Read... Then read some more. Do a little research on what you get when you are accepted by an accelerator. We are not fortunate enough to have a benefactor like Yuri Milner who is blind betting on an entire system (yet), but then neither are the companies we will fund. We fall directly in line with what most other accelerators invest. Third and most important point: It's not really about the money. I think if you asked folks who had successfully started, built and exited from an early stage company, if they would give up between 6%-9% to be able to "accelerate their personal and business development; get expert legal advice; learn how to build decent financial models; learn how to build and manage a team; get their software built; get to work closely with and get exposed to hundreds of investors... they would say "absolutely" at least they would if they were smart. Plus, most accelerators bring in investors to help companies learn how to write a good investor pitch, build a strong case for their business and present themselves in a way that investors feel comfortable with. The they turn around and listen to the pitches from companies that they helped mold. The advantage of this model is too obvious to require elaboration. Eel was right when speaking of the REAL benefits. Unfortunately, we haven't done a very good job communicating who our "Captains" (mentors, advisors, investors and friends) are. There will be a more detailed list of mentors and investors on the site shortly, but I assure you that we have the chops and the connections to make the Project Skyway experience a a worthwhile endeavor for early stage tech companies. So, forget about the $6k. It is there to get you through three months; to pay your cell bill; buy groceries and keep you from having to supplement your income to a degree that you can't focus on your company, your customers, your products and your personal development. It is there to help you become the full-time, balls-out, "Go Big or Go Home" entrepreneur that you will have to be in order to be successful.

57 points by shotgun 16y ago

shotgun 16y ago

Direct Link: http://www.ProjectSkyway.com http://www.ProjectSkyway.com

MatthewDP 16y ago

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

caseyallen 16y ago
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 http://j.mp/acceleratormap
- mattbauer 16y ago
  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).
  - domodomo 16y ago
    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?
    - rdouble 16y ago
      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.
      - domodomo 16y ago
        My bad for not noticing this. Thanks.
  - caseyallen 16y ago
    Hey Matt, nice to see you chiming in. Appreciate the thoughts. You say "You are left funding founders not dedicated enough to their startups to move and give their startups the best chance." Interpreted another way: everyone not smart enough or driven enough to move to the Valley we'll be stuck with. Second raters. But you're missing the point: Is this pool still good enough? In the pool of 5,000 rejected YC and TS applicants per year are there any winners? We think so. We think there are a lot. Chicago is a far cry from SV or NYC yet a full half of Accelerate Labs' last class* went on to raise an impressive angel round. 50% follow on funding is nothing to sneeze at no matter how you measure it. Most accelerator programs cross their fingers for that. You say "Thanks to Angel List you don't have to pay an accelerator for access". You just made raising a round leveraging AL sound really easy. You've found success with it -- is it really that easy? But even so, how do you think companies that are a tad too early for that going to maximize their chances of getting to that point? A Pedal Brain c. 2009? You bring up good points, and I think that they lead to the fact we appear to be "just another YC". Stay tuned. This is just our first class (what we call a cycle). In 2012 and beyond we'll be focusing much more on niche cycles. Ones that are absolutely perfect for this ecosystem. See this year merely as our test drive, but we know we're not perfect. Factor that in before you short us into the ground. =) Thoughts welcome. *http://www.exceleratelabs.com/portfolio/ http://www.exceleratelabs.com/portfolio/
yesimahuman 16y ago
I think it's worth mentioning that another accelerator has sprung up in the Milwaukee area (http://spreenklertalentlabs.org/ 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.

crawdad1313 16y ago

This is a long time coming. Project Skyway has the coolest selection process ever for an accelerator plus they don't require a technical co-founder because they are providing every single team 2 full-time developers.

projectileboy 16y ago
I don't think I understand... Do the full-time developers that are provided become partners?
- deleted 16y ago
  [deleted]
- caseyallen 16y ago
  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 then great, he can focus on what's core and have the offshore team work on secondary stuff. If it's a team of 3 business guys who have the right approach and the right knowledge then here's their chance to get the prototype figured out and raise that first bit of money to plow into a full time developer. Make sense?
  - rdouble 16y ago
    Do you have to use the offshore dev team?
    - caseyallen 16y ago
      No. Heck, we might not have any of our companies interested in going that route. But the option's there and we'll have a BA at their disposal. How many business minded entrepreneurs do you know that couldn't manage a contract developer if his life depended on it? We teach them how. The bigger point here is that for the first time ever guys who are non-coders but have domain expertise and the ability to take the product to market now have an option. Every other accelerator will slam their door in your face. We're pretty pumped about this. Having a tech cofounder is massively helpful, but we don't feel the lack of one discounts your value to zero.

jrubinovitz 16y ago

I love how detailed their website is. They know exactly what they're looking for, who's companies they can make a difference with, and they're upfront about it. I'm really interested to see who comes out of this Accelerator since they're so focused.

jrockway 16y ago

Now that the Tevatron is being decommissioned, perhaps we can reuse it as a "tech accelerator". One stream will be VCs at 512GeV, and the other stream will be people with ideas for Facebook clones. Then we just aim them at each other, and suddenly the HN frontpage will have 1TeV less annoyance. What I meant to say is: "tech accelerator" is a dumb name.

paylesworth 16y ago

Good luck guys! It's nice to see that there's a tech / startup scene getting going in Minnesota.

japherwocky 16y ago

From their application: "Each member must have a moderately full [LinkedIn] profile with a minimum of 2 recommendations and 50 connections." Is this a thing now?

crawdad1313 16y ago
It actually is "a thing" now...or at least it is for us (Project Skyway). We definitely questioned ourselves as to why we might want to include something like this. In the end, we feel it is a proxy for one's dedication to develop one's network. Certainly it is not the only measure by which one could reasonably judge someone's ability to have become involved in a community and it may not even be the right one, but social networking is a valuable asset and is a tool upon which many of us rely as part of an overall strategy to forward our business' goals. Plus, because we don't have a crystal ball into which we can peer to ascertain the kinds of networks and organizations our founders have chosen to become involved with, this gives us some information that we might otherwise not be able to get. In the end though, this is just one small piece of a bigger puzzle that we are trying to construct which will ultimately tell us a lot about the people that we will be working with and giving money to. Project Skyway is about the people, more than just the idea, because people run companies; people succeed or fail; and people are the most valuable asset (or the greatest liability) in any early stage company. We are looking for kick-ass PEOPLE with kick-ass ideas because without one, the other doesn't matter.
- japherwocky 16y ago
  With all due respect, consider that I am a tech guy with business sense, trying to get seed level funding solo in the Midwest. LinkedIn represents all the bullshit I wish I could skip in the startup scene. LinkedIn is all the corporate politics and multi-tiered organizational madness I am trying to escape from by launching a startup. So on the one hand, I feel like I am the prime demographic you should be trying to attract and recruit, but that LinkedIn requirement, combined with the "you don't need a tech guy" stance; it smells like a bullshit factory.
  - 16y ago

bugsy 16y ago

First point. $6000 in funding that comes with all these restrictions and gives away 9% of ownership is a terrible deal. It values your company at only $67,000. If your company is only going to be worth $67,000 or less you should stop what you are doing right now and get a job working in services or retail. On the other hand, if your company is worth much more than $67k, then this is not a good deal at all. VCs are not going to invest unless they think the company will be worth much more than $67k. Second point. If you need $6000 and somehow have not managed to save $6000 in the bank working as an engineer or designer then you should also reconsider whether you have the skills to create a successful tech company out of nothing. Third point. If you can't get a credit card with a greater than $6000 limit because of poor credit, please consider whether your financial skills are conducive to running a business. Summary. If $6000 is what you need to launch your company, borrow the money from mom, sell your car, or get a job for a couple months and save it.

eel 16y ago
In regards to the first point, note that it's $6000 per founder as well, so they are investing between $6000 and $30000 per company. The amounts seem to be in line with other tech accelerators. Also, the hope that these tech accelerators / incubators seem to have is that the money is only a small part of the value that they bring to the startup. The mentorship and connections that they will supposedly bring could be worth much more than the seed funding. That said, since we don't know their ability to bring in good mentors and connections/investors, it might not be a good idea. So I kind of agree with you there.
crawdad1313 16y ago
Bugsy, First point: Then don't apply. Second point - Read... Then read some more. Do a little research on what you get when you are accepted by an accelerator. We are not fortunate enough to have a benefactor like Yuri Milner who is blind betting on an entire system (yet), but then neither are the companies we will fund. We fall directly in line with what most other accelerators invest. Third and most important point: It's not really about the money. I think if you asked folks who had successfully started, built and exited from an early stage company, if they would give up between 6%-9% to be able to "accelerate their personal and business development; get expert legal advice; learn how to build decent financial models; learn how to build and manage a team; get their software built; get to work closely with and get exposed to hundreds of investors... they would say "absolutely" at least they would if they were smart. Plus, most accelerators bring in investors to help companies learn how to write a good investor pitch, build a strong case for their business and present themselves in a way that investors feel comfortable with. The they turn around and listen to the pitches from companies that they helped mold. The advantage of this model is too obvious to require elaboration. Eel was right when speaking of the REAL benefits. Unfortunately, we haven't done a very good job communicating who our "Captains" (mentors, advisors, investors and friends) are. There will be a more detailed list of mentors and investors on the site shortly, but I assure you that we have the chops and the connections to make the Project Skyway experience a a worthwhile endeavor for early stage tech companies. So, forget about the $6k. It is there to get you through three months; to pay your cell bill; buy groceries and keep you from having to supplement your income to a degree that you can't focus on your company, your customers, your products and your personal development. It is there to help you become the full-time, balls-out, "Go Big or Go Home" entrepreneur that you will have to be in order to be successful.