You’ll be happy to know that there are a couple PSU alum in the Dream It program earning their keep along side a majority of Ivy Leaguers in Dream It companies. A VC/Angel who came down from NYC for the pitches remarked how he enjoyed how much more diverse the companies were at Dream It in comparison to Y-Combinator. At Y-C, he complained, they seemed to force engineering down their throat with every pitch while DI teams covered areas as diverse as publishing to alarm clocks to mobile games.

Nice blog. Keep up the good work!

Here’s hoping they get they all close, but as Chris Cera of Vuzit spilled, ‘No one’s going to die just yet’ even if they don’t get funded immediately.

Thanks for the comments, David! Certainly nice to hear from a PSU alum, as it is to hear about the alums in the DreamIt companies.

Your comment concerning the comparison with YC is interesting. There are certainly many of opportunities to improve on the conventional model of “incubating” startup companies. I believe there are many at PSU who are hopeful that DreamIt is successful with its first portfolio, as it will be an excellent step towards providing greater opportunities for the aspiring entrepreneurs here in Pennsylvania!

Phillypreneurs looks like a great blog, as well - I’ve added it to my reader!

Robert

I’m the CTO of Vuzit … thanks for writing about the launch. We had the pleasure of working with a PSU MBA candidate as our strategist (Dave Noreen), and we are thrilled that he is going to continue working with us. He is a rockstar!

The comments on Techcrunch are always harsh … and I think this guys comment sums it up best: http://www.techcrunch.com/2008/09/04/dreamit-incubator-holds-funding-day-to-commemorate-first-graduating-class/#comment-2459024

Another great site for comments, and one from myself on “the scene” in Philadelphia:
http://news.ycombinator.com/item?id=294802

Thanks for writing about us. Go Drexel! ;-p

Rob,

Great write-up.

“Access to follow-on funding and mentors are the two key reasons why a seed stage venture would take part in one of these programs. Watching the closure rate for follow-on funding will be one indicator for how seriously PSU entrepreneurs should consider DreamIt for its second class next summer.”

As you mention, the closure rate of follow-on funding will be one indicator, but I believe in any of these incubators, there are certainly intangibles that are not quantifiable.

Mentorship, the other variable you mentioned, certainly falls in this category.

It is common knowledge that most start-ups (whether high-tech or not) fail. In fact, the SBA classes love to burn this information in beginning entrepreneurs heads to deter the faint of heart. In the path of any start-up there are certain obstacles to success.

Positive cash-flow is one of those obstacles.

But there are many others as well. I think that the biggest asset any incubator program could possibly be provide is removing obstacles to succes, whether it be introductions to additional capital (some of these companies may not be ready for it or want it), legal counsel (see the top ten legal mistakes entrepreneurs make linked to the Heekya blog), marketing & positioning, quick iterations on product, and a whole host of other things.

While I agree the funding rate (and eventually acquisition rate) of the DreamIt program’s start-ups will be interesting to watch, I’m not sure within such a short time frame (before next year’s program) how accurate a measure of success that will be.

Great post. When I first thought about approaching my partner 2 years ago to tell him about TapInko… I knew I’d have to speak slowly… for I knew him to be a Penn State alum. Unfortunately for me at the time, I didn’t realize just how slowwww I’d have to talk.

Having myself graduated from the Far-Superior-Prestigious-Football-Dominating- University of Miami… It was not shock that I had to teach Nicolas Warren much and I am happy to say that he has learned mostly everything he now knows from our relationship :-).

Ok, enough bashing. DreamIt was a wonderful opportunity and I second Chris in his remarks that those who say negative comments on TechCrunch are probably the same individuals who will never even have the opportunity to create an intelligent enough concept to be accepted to an Incubator. In other words… Don’t hate!

Thanks for the continued support. Pennsylvania is an amazing place to do business.

-Pete Groverman

Chris, thanks for your comment! It’s great to hear that you have a Nittany Lion working with your venture. Good luck with Vuzit!

David, thanks very much for your comment, too! You certainly make a good point that most startups, despite the best of efforts on the behalf of their founders, are not successful. Entrepreneurship is certainly an iterative process and requires sometimes many attempts. Though, your point about removing obstacles is key - effective mentorship helps you work the kinks out of your plan and some kind of funding keeps the lights on, thus allowing you to focus on all of the other causes of failure. That said, regarding an evaluation of metrics for DreamIt, you’re right that we probably won’t fully have an appreciation of how successful this first class is by the next application period. Truly, for startups, what is success? Each company will probably have a different point at which they could be deemed successful. Still, with YC and TechStars, there seems to be about a period of 6 months or so in which most of the ventures close funding. So, it will be interesting to see how things unfold over a similar timespan here, as well as where the funding comes from - will East Coast investors again watch from the sidelines as the more aggressive West Coast investors snap up the deals? It will be interesting!

Pete, we’re happy to have you share your great insight and wisdom here! It is certainly exciting to see the increasing growth in Pennsylvania entrepreneurship. We’ll be watching TapInko with interest!

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