Are they legit? Why so many? How much money are they putting up? What kind of deals are they looking to invest in? Do they do follow on capital? How are they going to scale with talent?
These were some of my questions going into last nights Lean LA event titled “Learn About LA Incubators/accelerators” – really glad they put this event on.
If your curious about what Lean LA is, it’s a non-profit organization that is all about helping entrepreneurs build successful companies. The organization is run by Pete Mauro, Patrick Vlaskovits, and Joe Zulli. I haven’t had the chance to officially meet Patrick or Joe, but my coffee meetup with Pete was very positive.
By the size of the crowd last night (350 people), I wasn’t the only one with questions. The event was packed with people waiting outside the Santa Monica Civic Auditorium hoping someone wouldn’t show and they could score a ticket to come in.
Another good call was the meal ticket that came with the admission price. How awesome is that? You could redeem at any one of the food trucks outside. Well done with this one!
So, let’s get to the meat of this thing. Why in the world would you want to move to Los Angeles for a startup? I wouldn’t, just being honest here. Not that I don’t think that everyone is doing a great job building the infrastructure and figuring it out, I just prefer to be in a place that already has it figured out.
Essentially all the incubators/accelerators said the same thing: they are working their tail off to create the infrastructure that will allow entrepreneurs and innovators to tap into and build great companies. I think this is important and overtime will happen. Do I think it will happen quickly? No. As with any startup infrastructure, you have to work your nuts off, take a ton of risks, put your ass on the line, be willing to lose some serious dough, f some stuff up, and then, after all that, make the decision to keep going. If LA can do this, they will, overtime, have something great!
And, the other thing is talent. I think there is talent as there is talent everywhere, you just have to find it, organize it, and put it to good use. If you can’t get talent involved in the community that is your own fault – this really means you suck at selling.
The panel was fantastic – mainly because it was moderated by Dave McClure who wasn’t afraid to ask tough questions and put people in their place – not in a negative way – I think he was just trying to challenge everyone to really think about what it is going to take to build this kind of community.
After Dave got everyone loosened up – it didn’t work for everybody, the event started with a representative giving a quick intro, history, and what their interest was in supporting the LA startup scene.
Some of the people who were on the panel were:
Start Engine (Howard Marks), Idealab (Allen Morgan), upStart.LA (Dan Dato), K5 Launch (Amir Banifatemi), Originate (Jeff Scheinrock), Amplify (Jeff Solomon), Muckerlab (Jeff Rannala), and Launchpad LA (Sam Teller).
Here is a list of all the incubators/accelerators and how they are structured as it sits today.
LeanLA.com Los Angeles Area Incubator & Accelerator Cheatsheet.
(Courtesy of Patrick Vlaskovits, more details here.)
Start Engine: 120 Startups @ $20,000 per year
Idealab: 4-6 Startups @ $50k – $500K a year
upStart.LA: 5-10 Startups @ $18,000 each class (1-2 classes per year)
K5 Launch: 10-50 Startups @ 25K-$200k
Originate: 10-15 Startups @ $100K-$1.5 million per investment
Amplify: 20 Startups @ $50,000
MuckerLab: 20 Startups @ $21k a year
Launchpad LA: 20 Startups @ $50k a year
Here’s the good news – at least from what I could see, people are fired up about entrepreneurship and they’re willing to step up to build the community, shape the culture, and pour cash into companies. And, for me, I don’t care where it is, if this is happening and people are trying, I am excited and fully supportive of it.
Now, go do your part…good things are happening.