Springboard Enterprises, an accelerator program which aims to connect female entrepreneurs with investors and mentors, has launched in Australia.
Although it’s the first time the program will run in Australia, Springboard has proven its success in the US; in just over a decade, it has helped raise more than $5.5 billion for 500 different startup companies.
“Springboard is a ‘venture catalyst’ group,” says Wendy Simpson, program director of Springboard Entreprises Australia, “it doesn’t have its own investment fund.”
Instead, Springboard connects female entrepreneurs with mentors who coach and help develop the business. The mentors also introduce the founders to investors. The goal is that by the end of the program the team is able to take on investment.
Simpson says she hears the same question all the time: “Where would I find someone who knows exactly what it’s like?” She says the key to Springboard is a “been there, run that” approach, which helps find the most relevant mentors and investors.
Founders should note that Springboard charges a $100 fee to apply to be considered, and a further $2,000 participation fee, payable if you’re one of the startups invited to participate in the program.
What factors determine whether a business is cutout for an accelerator program? Simpson says there are three key things that determine whether a business is a match for Springboard:
- The management team. Simpson says the first thing they’ll look at is the management team. They need to be willing to take onboard feedback and prepared to recruit investors;
- Business opportunity. The business needs to be able to grow. Simpson says the group are looking for companies that will benefit from the program;
- Scope for success. Simpson says that anecdotal evidence shows that female entrepreneurs often have a scope that’s too small. Mentors are matched specifically, to try and ensure founders can realize the full potential of their business.
According to Simpson there are unique challenges for female entrepreneurs, particularly when they are ready to bring investors into the fold. This can be because some investors don’t know how to apply a value to time that a woman with kids may have spent out of the workforce.
“When I speak to women the feedback I’ve had was that they’ll get someone who says ‘you don’t look like the sort of person I’d normally invest in. We have active, woman-friendly investors.”
Her advice for female entrepreneurs is to surround themselves with good mentors. A mistake that too many people make is not getting their capital raising right.
Simpson highlights Kay Koplovitz, who started Springboard Enterprises in the US just over a decade ago, as someone who ran into hurdles when she exited her cable television company. Because of a lack of good advice early on, Koplovitz didn’t enjoy the full benefit of her $4.6 billion exit.
“It’s particularly important in the early stages,” says Simpson, “you see some companies that have already given away their equity position.
“The moment of truth comes when you go to sell.”
Wendy Simpson is speaking this Wednesday 10 October at TieCON Sydney. Applications for the Springboard program close on Saturday 15 December.