Next month, Sydney-based startup incubator program Startmate will open for applications to its 2013 intake. As a mentor and investor in the Startmate program since its inception, I’m often asked questions by people considering whether or not to apply.
Startmate 2012 teams celebrate at the launch party for Atlassian’s new San Francisco headquarters.
Stay tuned for the news that applications have opened, but in the meantime, here are some of the common questions I get, and some answers; hope they help:
What are the biggest challenges faced by startups accepted into the program?
Some teams have had trouble relocating to Sydney for the three months of the program, setting aside career jobs, affecting relationships, finding a place to stay in Sydney, etc all take their toll.
Sydney-based teams have had trouble adjusting to live as full-time startup founders (rather than part-time startup dreamers) with the long hours, the ramen noodles, and the pressure to make progress.
A few teams in each of the two previous intakes have split up during the program as co-founders find an unequal level of commitment or a difference in strategic direction is irreconcilable.
Some teams have radically changed their startup as a result of what they’ve learned through the customer discovery they get to do during the program and have had to make big pivots and then ‘catch up’ with the other teams.
What does Startmate look for in successful candidates? What might disqualify me?
Startmate’s pretty clear about the sort of startups it prefers to accept into the program: teams of between 2-4, with a strong technical capability, who already have a working prototype of a product or service that has a direct-to-customer revenue potential, preferably software rather than hardware, looking for mentoring in business, legal, financial, marketing and commercialisation.
Each year there are one or more teams that don’t meet those criteria and still get in, on the strength of the team or the product idea alone. But you’re going to increase your odds if you meet the criteria.
Are there reasons why I should apply to Startmate and not other incubators?
We don’t promote Startmate over other incubator programs because we have great cooperative relationships with other incubators here and overseas. They all offer different benefits and services. You should apply for as many as you think might accept you.
That said, I would say that Startmate has a great track record so far, in getting AU startups funded and into growth phase. Startmate gives you $25k in real cash investment in your idea, as well as hands-on mentoring, dedicated office space, financial and legal services, and pitch events in the US and Australia. In 2013 Startmate’s looking to improve the value still further, and although the details are yet to be finalised, they’re likely to include a more money and more time in the US.
2013 will be our third year, making Startmate the oldest program of its type in Australia, and that means we now have an awesome community of experienced Startmate alumni who will also help you solve problems and introduce you to helpful people.
Startmate was founded on the principle of successful startup founders giving back to the startup community, and that principle is still important for all our alumni, mentors and investors. Startmate’s investor list now includes previous graduates Stuart Argue and Anthony Marcar, co-founders of Grabble, which was acquired by WalMart, and eight of our thirteen graduated startups are now partly or wholly based in the US. That’s a powerful network acting in your interests.
How do I increase my chances of being accepted into Startmate?
That’s a tough one, since it depends a lot on what your startup idea is, and who you are as a team and an individual. Obviously, the closer you meet our criteria, the better your chances, but we receive many hundreds of applications each year and select less than 10% of the startups who meet our criteria for our intake. Here’s some suggestions:
- Try to show that you have the ability to do your own product development by either showing us a prototype product, or showing us a resume that includes relevant experience and track record, with a well thought-out plan for how to get started.
- Try to show us that you’re focused on building a revenue-generating business, and where that revenue will come from.
- Try to be honest about what you don’t yet know, and what you hope to learn during the Startmate program. The Startmate investors are experienced tech startup founders, and between us we can see through any attempt to fake it, whether it’s on the business model, the marketing, the hardware or the software.
- Try to practice, practice, practice your pitching skills as much as possible in front of anyone who will listen and give you honest feedback on your startup idea. Whatever they claim, most Investors invest in only two things: potential CEOs and products. Since you don’t yet have a commercially viable product, you need to pitch yourself as much as your startup.
Disclosure: I am an investor in Startmate’s fund, and may profit from the success of the startups incubated by Startmate.