AlphaLab, Pittsburgh-based seed program, now accepting applications
March 31, 2009
With the summer approaching and finalists being notified from other seed programs, you might think that the window has closed for 2009 seed funding for your venture. Fear not, Penn State entrepreneurs. Pittsburgh-based seed program AlphaLab has opened applications for its Summer/Fall program. The official announcement is below.
AlphaLab is now accepting applications for its Summer/Fall 2009 session that officially starts on June 15th, 2009! Here are some important changes to note for this new application cycle:
- We are introducing an Early Action portion to the application period where applicants can be apply and be accepted early for the AlphaLab program.
- Early Action applicants will be invited to a meet-n-greet event with AlphaLab staff where they can interact and ask questions.
- Early Action candidates that are accepted to AlphaLab will be able to get an early start on working on their companies and have early access to AlphaLab resources.
- If an applicant is not accepted as part of AlphaLab Early Action, they will still be considered as part of the general application period.
- The Early Access deadline is April 17th, 2009.
The general application deadline is May 15th, 2009.
For more information about the application process (including Early Action) and to access the AlphaLab application, visit: www.alphalab.org .
(AlphaLab is a catalyst for launching the next generation of software, entertainment technology and Internet-related companies. Created by Innovation Works, one of the nation’s most active seed-stage investors, AlphaLab provides funding, free office space, expert business advisors and services through an intensive program in Pittsburgh. AlphaLab helps companies rapidly develop their technology, gain user feedback from early product releases, develop go-to-market strategies, and move toward successful commercial launch.)
How much equity?
March 30, 2009
Recently, I was asked to help figure out how much equity the co-founders of an early-stage startup should be given at the outset of the venture. This is an interesting question - in most cases, I think that early-stage startups all too often forgo the question and just divvy the equity pie up evenly. It’s quick, easy, and doesn’t require difficult discussions and decisions. Still, there’s often many differences in what is brought to the table and the risk borne by the each individual co-founder, and it makes sense to factor this into the equity pie from the start.
Still, how do you make “equitable decisions” on this topic? :) Some quick research presented this article from OnStartups.com that essentially states what was already discussed - the simple, equal division, is rarely the correct answer. Still, it doesn’t provide many suggestions about making the right decisions.
However, one of the comments is more helpful and provides a link to a page written by Frank Demmler, Associate Teaching Professor of Entrepreneurship at the Tepper School of Business at Carnegie Mellon University. Frank was previously in senior positions with multiple investment/venture funds in the Pittsburgh area, including general partner of the Pittsburgh Seed Fund, so he clearly has some experience in this space.
Frank promotes the idea of developing a matrix with the key elements of the business (idea, business plan) along with who’s bringing what to the table (risk, responsibilities, domain expertise), along with each of the founders. The key elements should be weighted and then values assigned in each category for the founders. The article just shows screenshots and doesn’t provide an actual Excel model that you can use, so I created my own version of the model in Excel - please see attached Equity Model Spreadsheet. This certainly seems to be a more empirical and quantifiable means of answering the question “How much equity?”
Upcoming Networking Dinner from the Penn State Network of Entrepreneurs
March 28, 2009
The Penn State Network of Entrepreneurs is hosting its annual networking dinner on April 7th at 6pm. The event will be held at the Atherton Hotel and is expected to include current entrepreneurs and investors.
Here’s the email from PSNE president Emmanuel Akintayo with further details:
Dear Psner’s,
We shall be having our annual networking dinner on the 7th of April at the Atherton Hotel. The event will begin at 6’oclock. The dress attire is business casual. This dinner like our last one will provide an informal setting were students will be able to socialize with Entrepreneurship driven individuals within our community. The guest list will include VC’s, Angels, and Small business owners, bankers and E-ship Professors. I strongly recommend any student interested in venturing into a start up to attend the event as it will provide you an opportunity to expand your already growing network. The itinerary of the event includes a 15 minute prelude, followed by dinner, and then a presentation by Paul. Domanico- Founder and Managing Partner of Innovalyst. The dinner will cost about 10 dollars per students and is going to be limited to 50 students. Reservations begins today and will based on a first come basis … Through out the week I shall be posting some more information about the event and … Alright take care.
Contact Emmanuel Akintayo (oea101 at psu dot edu) for further details.
Penn Stater “Booster Shots” article covering student entrepreneurship on campus
March 27, 2009
Penn State’s alumni publication, The Penn Stater, recently published an article on student entrepreneurship on campus in its March-April 2009 edition entitled “Booster Shots”. Amy Strauss is the author and profiled several prime examples of ventures emerging from the Engineering Entrepreneurship minor, including LionMenus.com, DiamondBack Automotive, and Triple Overtime Promotions.
And, the Lion Launch Pad got a nice mention, along with myself, Rob Shedd, & fellow co-founders Robert Macy and Liz Kisenwether!
The article, which is not available online, has been scanned and is available in the attached PDF.
Xobni exits beta and closes on $10m funding
Xobni, a Y Combinator alumni startup co-founded by Penn State alumnus Matt Brezina, is getting a lot of press, including a feature article in BusinessWeek!
The company recently released an updated version of its flagship product - the plugin for Outlook is now out of beta and features substantial performance enhancements.
Xobni also announced that the Blackberry Partners Fund has joined its Series B round of funding, increasing the total raised to $10 million. (Xobni had previously announced $7 million in funding in the Series B round led by Cisco.)
Certainly, the company is growing rapidly, as is the team. Rick Segal, a partner with the Blackberry Partners Fund, had glowing comments about the company.
Congrats Matt & team! For those of you who want to follow Matt’s progress, he recently setup a new Twitter account.
Student Managed Venture Funds
March 9, 2009
College Mogul, a blog following college entrepreneurship, recently wrote a post on “Student-Managed Venture Funds are the Future for College Entrepreneurs”.
Certainly, as student driven entrepreneurship continues to increase and universities seek ways to enable this trend, it makes sense for colleges to follow the “early leaders”, offering students this avenue of funding (not to mention the real world experience of working through the VC deal lifecycle).
Fortunately, for Penn State entrepreneurs, the Smeal College of Business is a leader in this space, with its MBA student-managed Garber Venture Capital Fund.
From the Smeal web site:
The fund, established in 1999 thanks to a $5 million commitment from Penn State Alumnus Dr. John Garber, and his wife Bette, brings reality to the teaching of entrepreneurism and venture capital by enabling MBA students to become actively involved in the process of equity investment and new ventures. Students examine current investment opportunities and decide whether to invest from the fund in a particular transaction. Interaction with external private-equity groups provides an opportunity for students to experience the complexities and pressures of the volatile private equity sector.
