The Market for Credit and Supporting Entrepreneurs

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Over the last few years of growth in Accelerator or Incubator programs, the overall media coverage of early stage tech startups has increased in Canada. The lack of coverage before the programs existed made media coverage a metric of success. For any entrepreneur support program to be relevant there is a requirement to be mentioned in the media resulting in the Alumni Success Metric as a key metric used to identify success of any program.

I think we need to find a better way to measure these programs and the effect on the problem they are solving.

As more and more programs compete on this metric they spend more on marketing to rise above the others which results in an increase in the costs to deliver a program. I believe competing on this metric can foster animosity between programs and hurts collaboration between a large number of extremely talented people.

What is the problem?

Founders are taking advantage of everything offered to them (as they should) which results to this common scenario in Canada (not based on any particular company).

  • Founders went to University of Toronto (and/or Waterloo and/or Ryerson and/or WLU and/or insert school here) and worked out of Banting and Best (and/or the Garage and/or the DMZ and/or any coworking space).
  • Someone else on the team took a pre-accelerter or some other community education program.
  • They are clients of MaRS and Communitech and Halton Innovation and…
  • OCE has awarded them a grant., MaRS IAF will invest in them, IRAP might have had a role.
  • They might get into another accelerator program before they finally get a few key investors at the table and start to grow.

When they get VC funding or something big worth a media push, what happens? Up to 10 organizations want to be listed and each of them release a story about how proud they are. Few if any list the other organizations or programs or people that helped (because the list is huge).

How this may hurt entrepreneurs?

Funding and product announcements aren’t success, they are a milestone that is blown way up in the local media as a result of everyone getting excited (excitement is good, celebrate the good things). It is possible that the positioning of programs media releases could confuse the market that the company needs to reach.

That said, the media coverage froth is likely localized to Canadian media so it probably has no effect on where the companies market likely is: the United States.

This intense market for credit can be frustrating for everyone who delivers programs. In reality it takes a community to raise a startup. From funders that have done it before to programs designed to focus attention, lower the risks associated with getting started, and build peer groups. We should all celebrate the entrepreneur and collectively be excited there is so many people out there helping them.

The metric is good for something.

Where I think the Alumni Success Metric does work is that helps inspire new founders. Knowing that good things have happened for those that come before them in the same program is the same metric Higher Education uses to recruit undergraduate and graduate students.

How do we avoid the zero sum game around credit?

The metric is not useful for defining the success of any program as most of the support happens in parallel in accelerators or incubators. It is extremely difficult to know what helped and when and where or what made the difference. It creates something for programs to compete over when they should be collaborating.

The stories about companies growing shouldn’t be “x program’s y company has done z” but instead be about how the company achieved this milestone and all the people that helped along the way.

A metric needs to exist that can demonstrate how effective a program is without having each program battle it out with marketing.

Step #1 is that we have to stop thinking of service organizations or accelerators or incubators as startups. They aren’t. They are philanthropic organizations offering a support group and networking services for founders, funders, and service providers.

The main goal is not to build sustainable models around these organizations (how can most realistically generate revenue outside of an education or philanthropic model?) but build a sustainable ecosystem that doesn’t require the current level of philanthropic support. Every philanthropic organization should hope that one day the problem they are solving is no longer a problem. That should be no different with supporting entrepreneurs and everyone should work together to achieve that outcome.

The “Tech Cluster” discussion must include Hamilton

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There is no doubt in my mind that when we are talking about tech in Canada and the future of the economy, Toronto and Waterloo will play a big role. It is one big ecosystem and it’s growing. There are some limitations to this growth and the big scary one is the relative lack of transportation infrastructure west of the Halton Region. This problem is making people choose between communities which isn’t good for growth.

A recent Huffington Post article where I was featured highlights the problem for technology (and just about any sector really) jobs. For myself I work in Toronto where there is a much larger concentration of research (17 000 grad students, $1.2B in research at UofT alone) which is important for me as I am constantly looking for founders with the potential to build scalable companies. With four kids the quality of life that I would like for my kids would be hard to provide in Toronto.

The quality of life issue is something that can be overcome by living in a lot of different communities outside of Toronto. You can have better access to and from Toronto to areas that have a similar quality of life as Waterloo in almost every direction away from Toronto but not west of Halton Region. Those other communities are 45-60 min train ride which is just another 15-30 min over the average commute if you live in Toronto.

The discussion on tech ecosystems has shifted from Waterloo or Toronto to a larger technology cluster of Toronto AND Waterloo — which is great! The problem, I think, is that only talking about Waterloo and Toronto for technology is limiting the stories being told of the amazing technology companies that exist in a broader cluster around Toronto.

If you are going to talk about a Technology cluster in Ontario it can’t be just about Waterloo, it must include the QEW corridor down to Niagara and it should put more emphasis on Hamilton. This area includes the regional municipalities of Halton, Hamilton, and Niagara (could also include Woodstock, Brant county, and Brantford). Combined they account for roughly 1.6 million people — nearly half the population is in Hamilton and it has the largest urban centre outside of Toronto in the south of the province. 

The conversation has to expand as I think it limits the economic growth by cutting off the story telling in the broader ‘technology’ sector. If all we talk about is Waterloo or Toronto we are distracting people from all the opportunity in a very broad area. Research, Software, and Hardware will be sprinkled around seeding growth everywhere. We also need to talk about and support the next evolution of technology manufacturing otherwise this resource rich country will keep exporting raw materials and be reliant on other countries to build our products.

This is not a zero-sum game.

Founders, do not apply to that accelerator

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It is that time of year again when all the accelerators start recruiting heavily for their new cohorts. Out they go looking for some great founders that ideally have some momentum already and the accelerator can take 5-10% of your company for $25-50k. They will market you, they will promote you, you will meet dozens of well intentioned people trying to help, and they will make you feel special.

But here’s the thing the accelerators won’t tell you… you can get all of that for free. What you have to do: build your company, focus on growth, and earn access to a trusted network that can apprentice under along your journey.

It will take 2-5 years to build your company.

You will hate it and love it.

It’s lonely building something even though you are surrounded by passionate people.

You don’t think you can do that on your own? You don’t know where to start? Start with customers. Start with reaching out to founders of similar companies that have exited or are doing something else. Don’t ask for money, ask for their time. Prove to them you can be coached and can move. Amazing things will happen next.

Only apply to an accelerator if it is a strategic move. It is crazy to give up that much equity unless you are absolutely sure you will get a return on that investment.

Remember: getting funded is not validation, getting accepted to an accelerator is not validation, and winning some prize is not validation. There is a lot to be said for natural growth. Customers paying for your product or service are. Focus on that instead of all the applications that will be tempting you over the next 6 months.

What is the problem accelerators are solving?

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There is currently a preoccupation with accelerators in the entrepreneur world resulting in a large increase in programs.  Arguably, the result of this frenzied growth is that ‘entrepreneurship’ is as commoditized as college. Unlike college, it is extremely hard to know which programs are adding value and which ones are wasting everyone’s time. This doesn’t mean investors aren’t in the know and they are favouring the programs they like – example, YC or TechStars.

It could become (or has already become) virtually meaningless to be an accelerator born internet entrepreneur so why would you give up 6-12% of your company to do it? For investors it is really hard to cut through the noise. I think this is because few people actually know why accelerators exist at all. In some cases I fear that the people that are creating new ones aren’t likely clear on why they are creating these programs either.

How does anyone know which ones work? What problem are they solving? What metrics should they be tracking in order to get better at what they are doing?

Defining the problem(s) accelerators solve.

There are three problems I think accelerators are trying to solve:

  1. Investors need to identify talent.
  2. Talent needs to find the right investors and coaches.
  3. Education system failure.

The first is a relatively easy problem to solve. It is hard for investors to identify talent at an early stage, accelerator programs offer a filtering tool for investors as they can take the top talent that applies and narrow it down to those that have the highest potential based the criteria of the particular program. If an investor trusts the filtering job done by the accelerator than that accelerator is providing value.

A suggested metric for this: measure how many alumni of a program receive funding, from what type of investor, and in what time span?

The second problem that talented people and teams have is finding the *right* investors and coaches. By the right investor I mean someone that will give you enough money and coaching that you can slowly de-risk your startup a little more and build momentum as you grow towards being a sustainable business. Founders need coaches to apprentice under while they build their company. The right investor is someone who will put in enough of their own money and time and they can help you get your business through the major milestones it faces. This likely means that party rounds are bad. What I think should be the goal are 4-6 investors and/or an individual (not a VC) has a 1/2 to 1/3 of the total round.

This should result in the person(s) who put in significant capital also have a board seat and have their sleeves rolled up ready/able to help.

A suggested metric: track who put in the most personal money in the round and are they on the board of directors or some other significant role in the company? How much time a week/month do they spend with the founders?

The failure in education is a much harder problem to solve. Is it the traditional silos that are limiting education or is it the expectation that you go to school to be trained for a job or a bit of both or something else? Is the failure the education system (K-12) or is it the students or both?

In higher education you have environments that are designed to encourage independent thought that is backed by facts and thinking. You should be exploring and developing your networks. At no other point in your life will you be surrounding with that much leading edge research and thinking. Just because a school doesn’t hand you your first startup with funding and office space does not mean the education system is failing entrepreneurs!

There is also already a process for very smart people to apprentice under others that have already developed their ability to take massive amounts of information and focus it on an outcome. It also happens to come with a filtering mechanism built right in that improves the likelihood that the person that finishes is relatively in the top few percent. It’s graduate school.

The process is not perfect but it is a process that works. Educating people is hard. Coaching people is harder still. If an accelerator is going to solve the failure of the education system in educating entrepreneurs it should take that part very seriously and not dismiss the education system as having nothing to offer.

A suggested metric: Does the accelerator have qualified educators and coaches that put in a significant amount of time (more than 1 hr a week) with each entrepreneur? Are there measurable outcomes expected on the entrepreneur? Are there consequences for not meeting expectations?

Accelerators should be more than marketing to the entrepreneur and placing them in a zoo for the public to see them in action. Education is serious business and it is about people’s future. Entrepreneurs need to have realistic expectations and enter with a clear idea of what they want out of the opportunity.

Everyone around accelerators is still learning about how to make them work and for whom. It is an exciting time in education — just be sure to track stuff that matters while you run the experiments!

A Perspective on Investor/Mentor Whiplash

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The other day Fred Wilson posted an opinion and some tips on Investor/Mentor Whiplash. He took the position that that is a big problem for accelerators as well as early stage and seed environments. Brad Feld took this as a bit of a misunderstanding on accelerators, he insists that TechStars creates an environment where early stage companies can learn to manage the whiplash. Brad Feld states:

I disagree with Fred. It’s not a big problem. It’s the essence of one of things an accelerator program is trying to teach the entrepreneurs going through it. Specifically, building muscle around processing data and feedback, and making your own decisions.

On the surface this seems correct. A problem (one of many) new founders face is the overwhelming barrage of mentorship (good and bad) and information mixed with the inability to filter. An accelerator should be able to provide the environment where a strong group of peers with some guidance can help to build the “muscle around processing data and feedback.” In the last 6 years I have noticed that is a common problem founders face and their ability to manage it is important to their success. It wasn’t until I experienced the whiplash myself a 2nd and 3rd time that I fully appreciated the damage it can do even if you are prepared for it.

Generally what I tell early stage founders:

  • Only talk to customers once you have something to show them — but that shouldn’t take you a long time, don’t go heads down for months. Asking people what they want and not focusing on something specific they can touch/feel is a path to busy work and infinite sadness.
  • Avoid the mentor parties/socialization. Find two (or three) good people with opposing views and bounce specific data off them but only when you have done something that requires fresh eyes to advise you how to interpret the results.
  • Focus on what isn’t working when getting feedback from mentors. Founders need to be positive but you need to focus on the bad things when talking to your close mentors that have been through it already. If they can’t help you with the tough stuff why are you spending a lot of time with them?
  • Don’t expect a direct answer. Experienced mentors know you are the best person to run your company, not them, and they have developed a way of not telling you what or how to do things but instead challenge you to figure it out in a positive way.

Whiplash from mentors doesn’t just happen in startups, it happens everywhere people are giving you advice or have something to gain by influencing the decisions you are about to make or the opinion you develop on something.

Being prepared and learning to manage the whiplash isn’t just the essence of accelerator programs, it is the essence of education that culminates in the top level you can achieve to filter information – a phd program. At the phd level the filter muscle is almost too strong but that is a topic of a whole other blog post.

The scary thing for entrepreneurs is that accelerator programs are too often run by people that don’t know how to effectively educate people and/or they have something to gain financially by the decisions founders make.

I think this *is* a big problem in accelerators. I wonder if the ability to teach that skill to founders (or select founders that already have that skill) is the difference between a successful accelerator (which is really only TechStars and YC) and one that isn’t (pretty much everyone else)?

In Canada education has oversight and that isn’t always bad

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There has been some dramatic attention brought to the Ontario Ministry of Training, Colleges, and University over some attention it has given Bitmaker Labs. I have had a few tweets shared and I wanted to share a quick view on this after saying that I totally support all the effort that is going on to get people into coding. It is good, necessary, and a heck of a lot of fun to those involved.

The first issue is why there are regulations, Wired has an explanation and a good article overall:

The rub is that Ontario’s Private Career Colleges Act of 2005 prohibits anyone to charge a fee for providing “instruction in the skills and knowledge required in order to obtain employment in a prescribed vocation” without approval from the TCU. The laws were enacted to protect students from expensive and misleading private vocational schools that offer substandard education, though the agency has been criticized for lax enforcement in the past, according to the Toronto Star (the U.S. has struggled to regulate such institutions as well).

No one is assuming Bitmaker is doing anything underhanded (and they even say that regulations make sense). The article that drew the attention of the government states:

Each student paid $7,000 for the opportunity to learn tough computer concepts in a condensed period of time as a means of securing employment in today’s increasingly digitized world.

Prior to enrolment, students were required to complete a 60-hour prep course taking them through Web programming language basics in order to maximize the effectiveness of actual class time. The student-teacher ratio is 8 to 1.

That sounds like tuition and it should be something people can claim on their taxes (and requires approval). There are a lot of things (like Employment Insurance benefits, etc) that the taxpayer can’t do to take advantage of the education infrastructure/support if an organization operates outside of the rules. Plus it is illegal. I do hope the process to get approved is quick.

There is a much larger debate about what education is and I bet there is a big can of worms around accelerators/incubators trying to be the ‘educators’ of entrepreneurs. It will be interesting to watch. Market failures in education and training exist which creates opportunity for entrepreneurs. Just be sure to follow the rules! I am sure Bitmaker will continue to be successful in the future and the tech community will benefit from this experience.

What is the Value of the ‘Alumni Success’ Accelerator Metric?

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There is a rapidly growing number of support groups and organizations that fit into the category of accelerator or incubator. What is the value one of the core metrics many accelerators use today ‘Alumni’ success and what does success mean? That success metric can be a funding event, exit, or some other significant milestone that has been made public. Each has a different value but the purpose is to say something positive about the accelerator which is, for many, a key ‘metric’ used to report back to those that back the program.

Why is it a metric at all? After all, shouldn’t accelerator/incubators be focused on making money? The role of accelerators in Canada according to Mark MacLoed:

…these programs are not meant to help investors discover the next giant. They are there to help investors and mentors identify, nurture and develop talent. In smaller markets like Canada’s, we are sorely lacking in proven, been there, got the t-shirt talent.

I generally agree with Mark as the purpose of all these programs is to build a funnel of qualified talent which has a value to those that back the accelerator. That could include investors and/or the government (the tax payer). I will add that what happens with all this support is self guided experiential ‘business education’ but that is another blog post.

When an accelerator releases something that states “congrats to cohort company x on raising money from y” how should future applicants weigh those releases when the company is an alumni of more than one program? How should the people that support these organizations value those announcements?

As a recruiting and reporting tool I can certainly see the value in getting the organizations name out there. The problem is that it starts to sound like a ‘party round’ where so many people have been involved in some way it is impossible to say who made the difference. The truth is they all helped. The value for any one organization is not as high as it would be if the company only worked within a tiny controlled system. That simply isn’t happening and that is a good thing. It takes an early stage business ecosystem to build more frequent and bigger success which includes all points between here and the valley.

This is something very similar to the education system where every school at all stages of education can share in celebrating success of their alumni. If a higher concentration of success is coming from a particular school then that won’t go unnoticed and it should be supported and enhanced.

What I hope will happen peacefully and relatively unnoticed by the entrepreneur is that the organizations that have more success grow, those that low success fail, and new ideas are injected into the process as everyone keeps learning.

 

Accelerator Metrics and Developing Entrepreneurial Talent

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I spent a little time at StartupWeekendHamilton3 in April as a mentor and was talking to one young founder that proclaimed that there was one great accelerator in Canada. Who he said it was surprised me a little and got me thinking, what makes an accelerator “the best” and why should an eager founder care? The baseline in my mind is Y-Combinator. No one can argue it is the best seed stage accelerator based on its results. What is difficult for everyone to agree upon is what does it do to achieve those results or even harder, what defines success?

In my opinion the key things it does:

  • Social Capital via Paul Graham – how he teaches founders and the hacker culture he has built provides entrepreneurs with access to the very best social capital that exists for anyone starting a technology based company.
  • Peer mentorship – the structure of the 12 weeks enables peers to hold each other accountable. This competition amongst comrades is powerful as it turns around the human nature of playing to our own strengths and pushes founders to “keep up with the Jones’s.”
  • Hungry founders – funding is minimal. After a bit of a bump it has since been decreased and I would bet if you look at the successes out of YC the biggest ones started off with the least amount of financial resources.

There is some striking similarity to what YC does and the thinking/observations behind the Goldmine Effect by Rasmus Ankerson (watch it, it is interesting). The basic point is that if you can find the talent that has the potential vs the talent that already been refined you will get a better result. Money and facilities do not make a difference, identifying underdeveloped talent does. I think there are three core factors that go into determining the quality of a given program.

  • Where is the program located? Are there companies in the immediate area just a stage or two ahead that can help you grow?
  • Who is backing the program and what did they invest to make it happen? Do they get involved in the companies they invest in or do they “spray and pray” with their investment?
  • What type of companies have been successful in the accelerator in the past? Who gets funding afterwards? Are the B2B or B2C, SaaS or something else, etc.

What is less important:

  • Demo Day: The rock show nature of Demo Days is not a good environment for investors but you need to take advantage of the intros and the social capital on offer to build those connects yourself.
  • Money: Funding amounts from the accelerator should not influence your decision to go there. Good companies will get funding, build a good company and spend as little as possible doing it.
  • Mentor walls: In Canada there is a relatively small pool of people with both time and capital but there are a lot of people that can help you move the needle in different ways.

Right away some might say that the above “less important” items are what builds momentum and if you look at the YC companies momentum being 3x that of TechStars then how can I say that is less important? These things have the greatest effect after the startup object is already in motion, in my opinion. The less important items are used all too often as *the* way to get the startup object moving.

A simple score card to find out who’s best for you

If a score card was set up to measure a program it should look something like this:

  • The program is located near companies that I am interested in working with
    • 1 – none that I know of
    • 3 – some interesting founders
    • 5 – who we would exit to and/our would like on our advisory board are within walking distance
  • Investors in successful companies that have been in the program are
    • 1 – Not involved in investments
    • 3 – one of 12 investors in the companies that graduate
    • 5 – take a board seat and/or a significant position in the financing round following completion of the program.
  • Companies that have been successful in the program in the past are
    • 1 – nothing like us, we are B2B SaaS and all the successful companies are gaming companies
    • 3 – some are similar to us, there is no particular pattern to the type of company
    • 5 – just like us, we are a hardware company and everyone that has done well post-program are hardware companies
  • Funding we receive from the accelerator program is enough to
    • 1 – we can go 6-12 months no problem, its great to not have to raise or find revenue right away
    • 3 – it is ok but in 6 months if we don’t have revenue or financing we are done.
    • 5 – we can pay rent while in the program but we have to move and stay lean to survive.

This is by no means research quality metrics but it does start to assign some way to weight rankings… for you. If I was going to score YC I would give them a 5, 3, 4, and 5 which would total at 17/20.

What else should be on this scorecard?

The “Accelerator Bubble” will pop but not for the reason you think it will

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The incubator/accelerator market has a growing number of people watching and waiting for it’s bubble to pop. The reasons sighted for this looming pop should be obvious: most accelerators aren’t going to perform as well as some TechStars (TS) programs and not even close to Y-Combinator (YC). Poor performance (measured in the number of short-term wins) along with the short-term nature of the funding behind most of the accelerator programs will cause them to run out of money and simply fade into startup history. But that won’t pop the bubble.

As accelerators have become an increasingly popular way to scatter seed funding among a large number of companies, critics have noted two key developments: Companies of lesser promise are gaining acceptance, and often funding, and the quality of mentoring in the programs has decreased.

When David Tisch, former managing director of TechStars’ New York City accelerator, stepped down from his role with the program, he complained in an interview that “the majority of accelerators are not good for companies.” – http://www.businessweek.com/articles/2013-03-14/waiting-for-the-accelerator-bubble-to-pop

I think the bubble pops when the application numbers and quality of the people applying drops. That will happen when people no longer feel they need what accelerators offer. The leading indicator will be poor performance of the companies coming out of the program, which is likely a result of the poor quality of entrepreneurs in the program. 

The Angel and VC community reacted to YC’s early success and latched on to the TechStars model that was viewed as a copy of Paul Graham’s YC model but open (there are only two models for success). This experimentation with the TechStars worked in terms of building a big lead list of early stage companies and “founders to watch” that have a baseline education and network. Education is something investors used to have to do on their own for their early stage investments, the TechStars model allows investors a way of scaling that early stage knowledge transfer.

The problem with it is that everyone copied the 12-week TechStars model and didn’t look at what brought Y-Combinator it’s early success. It isn’t the DemoDay or the great list of mentors. It is the education process (which includes holding people accountable) that built the success and now the alumni network that is allowing it to scale to a point.

When looking at the demand (indicated by the ever growing pile of applications), it isn’t just fuelled by the popularity of tech startups and the sexiness of the moment. The demand for accelerator programs is fed by a gap in the services or product that is currently offered in the education system – globally. As building companies that require highly skilled and educated employees has become ‘easier’ the higher education system that was optimized to train PhD candidates hasn’t adjusted to the new reality.

The education industry gets this and it has been learning how it can meet the need. There are a lot of experiments out there in higher education that have a long history but more recently the focus on experiential learning has seen the accelerator model meet education. The common place to find them spreading in higher education globally is to google “Venture Lab” and skip passed the .ca reference. There 25+ of them across the globe and growing.

The first generation of programs are a few years along and the next generation of programs is emerging. There is a range from innovation and entrepreneur streams in undergraduate and graduate programs to full blown programs that are accelerator-like but heavily integrated into the educational experience of students. There are still a lot of unknowns to be worked out but it is clear to me that the education system is better positioned to educate students and will eventually make most accelerator programs obsolete.

These programs will exist at every school and if they are done right at a few key schools the applicant pool will degrade for expensive accelerators.

 

Finally, this is the Creative Destruction Lab at Rotman

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Today Thalmic Labs announced it’s amazing MYO device is now available for pre-order. Techcrunch highlights their Y-Combinator backing, which is only part of the story. A community is supporting this company from San Francisco to Waterloo to Toronto — like so many companies in Canada. That community has grown a lot over the last few years. I am really excited to continue to have a part in its growth. Over the last 6 months I have had a lot of fun in developing a part that had a key role to play with MYO, connecting them to world class talent in Canada that invested both time and money to accelerate their growth.

Enter the Creative Destruction Lab:

The Creative Destruction Lab at Rotman is a venture lab that leverages: the business school’s leading faculty and industry network; inventions and talent from the world-class, technology-oriented faculties at the University of Toronto such as Computer Science, Engineering, and the University Health Network; and, its location in the heart of Toronto – North America’s third largest financial centre and one of the world’s most culturally diverse cities, to achieve its mission.

What do we do for Thalmic (and 9 other ventures)?

“Thalmic quickly leveraged the Creative Destruction Lab and raised the majority of their seed capital from the Lab’s G7 (coaching and investor group) including some of Canada’s leading entrepreneurs like Daniel Debow, Senior Vice President of SalesForce.com, founder of Rypple and Rotman JD/MBA graduate, Tomi Poutanen, founder of Optimized Search Algorithms and Rotman MBA graduate, and Lee Lau, Director and Co-Founder of Alignvest Capital Management and founder of ATI, and their network,” says Rotman Prof. Ajay Agrawal, Peter Munk Professor of Entrepreneurship and Academic Director of the Creative Destruction Lab.

How we do this is by starting off with 18 ventures that were a mix of everything from software to hardware, many in life sciences, consumer, and B2B. From there the G7 (a board of amazing Canadian Entrepreneurs) set milestones for them and have them meet with our G7 every 6-7 weeks like any funded startup would to its Board of Directors. Each meeting at least one company must be cut. What we experienced so far is that four were cut at the first meet, three at the second, and then two at the third meeting. Then we added one. You will hear about them in the future I am sure.

Thalmic is cool (and early) example of what the lab is about, there will be others coming out over the next while. Over the last few months we have developed our program, tweaking here and there, while on a crazy steep learning curve. This is the start of something awesome and yes, we put the founders first. Another company is looking at funding options now and the message to them from us is that they decide what is best for them. If they don’t take the funding we will support them. No one should feel pressured to do anything but focus and create awesome companies.