

Minnesota’s First Tech Accelerator Now Taking Applications - shotgun
http://tech.mn/news/2011/04/01/project-skyway-minnesotas-first-technology-accelerator/

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bugsy
First point.

$6000 in funding that comes with all these restrictions and gives away 9% of
ownership is a terrible deal. It values your company at only $67,000.

If your company is only going to be worth $67,000 or less you should stop what
you are doing right now and get a job working in services or retail.

On the other hand, if your company is worth much more than $67k, then this is
not a good deal at all. VCs are not going to invest unless they think the
company will be worth much more than $67k.

Second point.

If you need $6000 and somehow have not managed to save $6000 in the bank
working as an engineer or designer then you should also reconsider whether you
have the skills to create a successful tech company out of nothing.

Third point.

If you can't get a credit card with a greater than $6000 limit because of poor
credit, please consider whether your financial skills are conducive to running
a business.

Summary.

If $6000 is what you need to launch your company, borrow the money from mom,
sell your car, or get a job for a couple months and save it.

~~~
crawdad1313
Bugsy,

First point: Then don't apply.

Second point - Read... Then read some more. Do a little research on what you
get when you are accepted by an accelerator. We are not fortunate enough to
have a benefactor like Yuri Milner who is blind betting on an entire system
(yet), but then neither are the companies we will fund. We fall directly in
line with what most other accelerators invest.

Third and most important point: It's not really about the money. I think if
you asked folks who had successfully started, built and exited from an early
stage company, if they would give up between 6%-9% to be able to "accelerate
their personal and business development; get expert legal advice; learn how to
build decent financial models; learn how to build and manage a team; get their
software built; get to work closely with and get exposed to hundreds of
investors... they would say "absolutely" at least they would if they were
smart.

Plus, most accelerators bring in investors to help companies learn how to
write a good investor pitch, build a strong case for their business and
present themselves in a way that investors feel comfortable with. The they
turn around and listen to the pitches from companies that they helped mold.
The advantage of this model is too obvious to require elaboration.

Eel was right when speaking of the REAL benefits.

Unfortunately, we haven't done a very good job communicating who our
"Captains" (mentors, advisors, investors and friends) are. There will be a
more detailed list of mentors and investors on the site shortly, but I assure
you that we have the chops and the connections to make the Project Skyway
experience a a worthwhile endeavor for early stage tech companies.

So, forget about the $6k. It is there to get you through three months; to pay
your cell bill; buy groceries and keep you from having to supplement your
income to a degree that you can't focus on your company, your customers, your
products and your personal development. It is there to help you become the
full-time, balls-out, "Go Big or Go Home" entrepreneur that you will have to
be in order to be successful.

~~~
bugsy
Regarding applying, I run my own business and I am sure I make more than all
you guys combined. My comments are because this is posted on HN not on your
web site and I have a right to comment. Maybe some kids will read my comments
and realize how bizarre a $6000 offer is all things considered.

Sure, I understand that you are claiming to provide all sorts of introductions
to power players, politicians and the illuminati who your site implies are
your close and personal friends. Presumably then like Facebook one can get
laws passed requiring internet ID and position themselves to get a monopoly.
Work the system and create a global police state rather than provide a solid
product customers want and choose to use voluntarily because it is valuable to
them. Not all creators want to go the route of leveraging politicians with
bribes and back door deals to succeed. Some of us just want to make a solid
product free from interference from so corrupted politicians working to squash
entrepreneurs that don't cut them in for a share as if they are the mafia.

Who are you guys again? How many successful businesses have you founded? Which
politicians exactly are you related to and what are examples of your past
successes influencing them in subversion of democracy?

A lot of innuendo, very little specifics. It all sounds like a bunch of big
talkers looking to grab a slide of ownership of a bunch of companies for
peanuts when those companies don't need any such help to succeed.

My opinion would be different if the offers weren't so tiny.

$6000 is nothing. Typical software product should be selling $6000 worth in a
day or at most a week or what is the point.

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jrubinovitz
I love how detailed their website is. They know exactly what they're looking
for, who's companies they can make a difference with, and they're upfront
about it. I'm really interested to see who comes out of this Accelerator since
they're so focused.

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crawdad1313
This is a long time coming. Project Skyway has the coolest selection process
ever for an accelerator plus they don't require a technical co-founder because
they are providing every single team 2 full-time developers.

~~~
xal
Kudos to the launch.

The makeup of the founding team thing will be the make or break. I've barely
seen a recent success story of a startup where less then 100% of the founders
were technical. It used to be possible but I expect that times have changed in
this regard.

Bluntly, this approach sounds wrong to me from an investment portfolio
strategy point of view but I'm glad you are taking the risk and try it.

I definitely think that being in Minnesota will be a competitive advantage
however. The area is vastly underrated and pretty incredible talents live and
work there. Best of luck to your team and project.

~~~
wheels
> _I've barely seen a recent success story of a startup where less then 100%
> of the founders were technical._

Groupon and Zyngas's founders aren't programmers. I'd say they're the two
biggest hits of the last 5 years.

~~~
sayemm
Correction: Andrew Mason actually is a programmer. He built Groupon in Rails.

Also, as the other commenter pointed out, Mark Pincus's co-founder Justin
Waldron is a programmer, but Zynga's probably a bad example anyway because
Pincus was very much an accomplished entrepreneur with a lot of resources at
hand prior to founding Zynga.

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japherwocky
From their application:

"Each member must have a moderately full [LinkedIn] profile with a minimum of
2 recommendations and 50 connections."

Is this a thing now?

~~~
crawdad1313
It actually is "a thing" now...or at least it is for us (Project Skyway).

We definitely questioned ourselves as to why we might want to include
something like this. In the end, we feel it is a proxy for one's dedication to
develop one's network. Certainly it is not the only measure by which one could
reasonably judge someone's ability to have become involved in a community and
it may not even be the right one, but social networking is a valuable asset
and is a tool upon which many of us rely as part of an overall strategy to
forward our business' goals.

Plus, because we don't have a crystal ball into which we can peer to ascertain
the kinds of networks and organizations our founders have chosen to become
involved with, this gives us some information that we might otherwise not be
able to get. In the end though, this is just one small piece of a bigger
puzzle that we are trying to construct which will ultimately tell us a lot
about the people that we will be working with and giving money to.

Project Skyway is about the people, more than just the idea, because people
run companies; people succeed or fail; and people are the most valuable asset
(or the greatest liability) in any early stage company. We are looking for
kick-ass PEOPLE with kick-ass ideas because without one, the other doesn't
matter.

~~~
japherwocky
With all due respect, consider that I am a tech guy with business sense,
trying to get seed level funding solo in the Midwest.

LinkedIn represents all the bullshit I wish I could skip in the startup scene.
LinkedIn is all the corporate politics and multi-tiered organizational madness
I am trying to escape from by launching a startup.

So on the one hand, I feel like I am the prime demographic you should be
trying to attract and recruit, but that LinkedIn requirement, combined with
the "you don't need a tech guy" stance; it smells like a bullshit factory.

~~~
cemerdem
I don't know the roots of your strong emotional reaction against Linkedin but
at the end of the day we all have our own opinions. Project Skyway can't be
everything to everyone. Wish you the best. And I mean it.

~~~
japherwocky
You're saying that you are a "tech accelerator" who values social networking
more highly than technical skills. I'm just kind of baffled by the
implications of that.

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shotgun
Direct Link: <http://www.ProjectSkyway.com>

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MatthewDP
Nice to see some more start-up activity in the mid-west!

~~~
caseyallen
Agreed! We thought the coasts were getting a little too cocky, hence, we knew
we had to break out Project Skyway...<http://j.mp/acceleratormap>

~~~
mattbauer
Proven returns isn't being cocky. If your plan to compete directly with the
coasts startup for startup, idea for idea I wish you the best of luck. I'm
going to have to short your stock though. The Midwest at this time and
possibly forever can't compete against the coasts for the types of startups
project skyway is looking for. They have more quality talent for
web/mobile/social/etc. They have more advanced networks and streamlined
capitalization. They also have founders going on startup three, four, five and
not all successful. If I had a web/mobile/social/etc startup or saw myself
being a founder of one, the first thing I would do is move. The statistics of
success dictate such.

Things brings up a problem see with project skyway. You are left funding
founders not dedicated enough to their startups to move and give their
startups the best chance. I would have serious reservations about investing in
such a founder.

Incumbators were great even two years ago but now they really aren't as
necessary. Thanks to Angel List you don't have to pay an accelerator for
access to the network. In the world of Angel List an accelerator is actually a
decelerator. If you have an idea for a startup, get a prototype done and
submit it to Angel List. If it's got merit, you'll get interest. If not, move
onto something else. I view project skyway more as a founder school that you
pay with equity rather than an accelerator. I wish it would market itself as
such.

The Midwest can kick the coasts' ass any day of the week but not with the type
of companies project skyway wants. It's with the type of companies it
specifically doesn't want.

I wish project skyway the best (that's Minnesota nice for I don't think it
will work).

~~~
cemerdem
I am the founder of Project Skyway. Just checked out your web site Matt. Great
product. Great accomplishment. Would love to have you in our network.

To respond to your comments, we chose not to entertain any device companies
like yours because we do not have the expertise, network or resources to
benefit these types of companies at this point. Since this is our first class,
we wanted to have a narrow focus. This might change however as we add
individuals like you to our network. If you don't fell for the spell of the
coasts, that is, and continue to enjoy what MN has to offer to our
entrepreneurial community.

BTW, I can make an intro for you to the CEO of one of the largest health clubs
in the country. They do a lot of biking related events. Might be a good
partner to get the word out about your product. Let me know.

~~~
mattbauer
_Just checked out your web site Matt. Great product. Great accomplishment.
Would love to have you in our network._

My company is specifically listed as an example of a company you're not
interested in on your website FAQ and you just checked out our website?
Additionally I say something challenging about Project Skyway and you ask me
to join your network? Thanks but you're better served by guys like Rob Weber
and Justin Kaufenberg. They made it. I'm just in the process of.

 _we chose not to entertain any device companies like yours because we do not
have the expertise, network or resources to benefit these types of companies
at this point._

This is the part I just don't get. MN has more expertise in MedDev (Medtronic,
Guidant, Mayo, United Health Care, etc) and hardware (Compellent, Xiotech,
Cray, IBM, etc) than anything else. I guess I would add advertising to that
list (Fallon, Olsen, Brew).

 _If you don't fell for the spell of the coasts, that is, and continue to
enjoy what MN has to offer to our entrepreneurial community._

I'm staying. See above for the reason.

In the end Cem you've made a bet with your own money. We'll see how it plays
out.

~~~
cemerdem
"My company is specifically listed as an example of a company you're not
interested in on your website FAQ and you just checked out our website?"

Many people are working together to build Project Skyway. Although I approved
our FAQ, I didn't make the connection when I saw your company name.

MN might have more expertise in MedDev or hardware or advertising. I don't. As
you stated I am betting my own money. Naturally I put it where I know the
most. I would invest in real estate in FL before I invest in a med company.
And how much do you think I know about investing in real estate in FL?

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jrockway
Now that the Tevatron is being decommissioned, perhaps we can reuse it as a
"tech accelerator". One stream will be VCs at 512GeV, and the other stream
will be people with ideas for Facebook clones. Then we just aim them at each
other, and suddenly the HN frontpage will have 1TeV less annoyance.

What I meant to say is: "tech accelerator" is a dumb name.

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paylesworth
Good luck guys! It's nice to see that there's a tech / startup scene getting
going in Minnesota.

