Why we joined the Techstars startup accelerator
We’re excited to announce that we’ve joined Techstars in the 2018 MetLife Digital Accelerator Powered By Techstars
Why did we join an accelerator?
We started Enroll Hero in San Diego. While there are seeds of a startup ecosystem starting to sprout a bit, San Diego didn’t offer much in the way of startup community, support, or fundraising for us. We wanted to meet other VC-backed unicorn-chasing cockroach-gritty startup founders, mentors, and advisors.
Frankly, we also needed capital. Bootstrapping is a bitch.
Why did we join Techstars?
Techstars and YC are the top accelerators in the world. So we applied to and interviewed at both of these. (My YC story will come at a later point.) From conversations, the difference between the two is that Techstars does smaller classes of 10 and the program is more structured. YC does batches of like 150 companies.
Joining a top accelerator gives you a badge to tell others that you are part of the 1% of companies that have a higher chance of survival. This helps with intros to investors, founders, mentors, and potential partners. You are likely to have a higher valuation at an earlier phase of your company as a result.
We were really excited when we learned about the new Techstars MetLife program that can lead to a potential partnership with one of the biggest insurance companies in the world. We couldn’t ask for a better program.
How much does it cost?
Standard Techstars terms are: 6% for $20K, $100K Convertible note with a $3M(what we got)–$5M cap based on previous investment rounds.
We thought hard about whether the value exceeds the cost. For us it was a definite YES.
What do you want to get out of Techstars?
Techstars wants you to see the equity they take as bringing on a co-founder. In that sense, I think having the network, an awesome Managing Director, and structured help is something we’re excited about having on our side to grow our business.
For us specifically, we want to work with Techstars to partner with MetLife and raise a seed round.
What was the application process like?
- Find someone affiliated with Techstars, e.g. alum, director, associate to give you an intro to a Managing Director. You must do this. If you can’t do this as an entrepreneur…you may want to question everything in your life. These are table stakes.
- Apply via online form and 1 minute videos.
- Interview via 2 video chats with your Managing Director. One super short and one longer in-depth one. For our program, we also met with someone from the MetLife team.
- In person interview and pitch. It is 30 minutes in front of a group of various people that will ask questions. They will select 50% of the companies at this stage. So not getting in will sting even more.
- Reception. This sounded great…to have drinks and meet other founders. Wrong. This reception is not for the startups, it’s for the selection committee, alum, and Techstars folks to have another hour and a half to assess you and your company
- The call! We received an email to schedule a call and after a few questions we learned we had gotten in. It was nerve racking and shrouded in mystery to our hearts’ discontent.
How did you get into the program?
Techstars talks about the most important aspects of the company being team, team, team. As such, we were sure to make sure we let our individual light shine through via experiences, patents, our good founder relationship, expertise…everything to tell them that we’re the ones that will make this opportunity happen.
We are just getting started
After 1 week, we can’t be more excited about our company and where everything is headed. Not because anything changed with our business, just that we now have an entire tribe of amazing people behind us. We’ve brought on an amazing co-founder and I think it’s going to make all the difference.
If you have any questions about accelerators, startups, or Techstars. I’d be happy to share my thoughts. Just hit me up at mark at enroll hero dot com.
About Enroll Hero
For more about what we do, this is our story.
