10 Reasons to Apply to Jumpstart and *NOT* Go It Alone

Nashville is experiencing an entrepreneurial renaissance right now, and it is amazing. I remember when I joined the founders at Emma in 2003, and I can tell you that there was no such mentor network, no Entrepreneur Center, no angel community (at least not for an Emma) and no tech community outside of a few user groups here and there. It was not an entrepreneur friendly environment.

When I left Emma in 2007, and started Remarkable Wit, my only real mentors were the founders at Emma. The ability to easily speak with other founders or potential investors just didn’t exist. How would I find them, and how would they find me? How would they know I was worth talking to, or vice versa? Pure stubbornness and a lot of bruises over the last three years have enabled me to realize my dream of being a founder of a funded tech startup, but it was much harder than it needed to be. Because of my own experience as a founder, I have been a strong supporter of the Nashville EC, a founder of Jumpstart Foundry and involved in various other tech community initiatives from Barcamp to the NTC.

If you are starting a company in Nashville in 2011, you will be spared many of the challenges that I faced as a startup founder, and I am extremely grateful for that. Yet, I am still confident that Jumpstart Foundry has significant advantages for first time (and even some follow-on) founders over the “go it alone” path that seems very attractive in this vibrant ecosystem. The number one reason I hear from entrepreneurs for not applying to Jumpstart is the equity stake that Jumpstart takes for the investment. So, I figured I’d try to speak to the value provided for the equity earned (and it is absolutely earned) by Jumpstart, by giving you my top 10 reasons why you should apply to Jumpstart this year.

1. The Techstars Network – The most career and life enhancing part of my last two years at Moontoast has been the network that I’ve developed. At first that network was Nashville only, and that was great. But at a point, Nashville hit its limits. It’s natural, each city has a different makeup of industries, financing, educational institutions etc. Going to Boston, NY and San Francisco on a regular basis, and developing relationships with other entrepreneurs in those cities, has opened my mind about our business and significantly improved my ability to lead. It helped me to understand that not all investors are created equal, and some work better for some scenarios than others. It also showed me that Nashville has a great opportunity to become as powerful as any of those cities, if it plays to its strengths and sticks together.

It’s not an exaggeration to say that Techstars may be the greatest organization for tech startup mentorship in the world. Acceptance into Jumpstart means access to that network, and that access is priceless. Hell, I’m still beside myself about what being part of the Techstars Network will mean for my career! Sure, you may be able to cobble that network together on your own (I doubt it), but you’d spend precious energy that should be spent focusing on your innovation engine proving to people that you are worth talking to. We’re going to bring in past Techstars graduates too, like Next Big Sound’s Alex White, to provide encouragement and insight.

2. Our Mentors – There are few things I’m more excited by than seeing the diversity and strength of the Mentors that Jumpstart is organizing for the program this year. There is no doubt that the 6 companies that are accepted will have the focused attention and support of the best entrepreneurs, technologists and investors in Nashville. People you wouldn’t think would be in Jumpstart are going to be mentors this year, and we are going to monopolize their expertise and energy (as much as they let us) over the summer. You will have a clear advantage in the evolution of your idea by getting valuable feedback and insight from people who have been there and back many times over.

3. The Nashville Entrepreneur Center – Yes, we are partnering with Michael Burcham and the great folks at the EC. But, I prefer to think of it as a Summertime JSF invasion. We are going to be taking our companies from idea to working product with customers in 14 weeks. That is not just the goal, that is the requirement. We are crafting a special curriculum and process that we will co-execute with the EC for those 14 weeks. The EC will continue to serve all of Nashville during the summer… but Jumpstart will be there everyday, 12-18 founders deep, pushing our six companies to product-market fit.

4. The Jumpstart investment makes you MORE valuable, not less – If all you’re thinking about is the 6% (yes 6, not 10) that Jumpstart gets for its investment, take a closer look. This is not a zero sum game. You are seeking to create value, and you can’t do that without other people who believe that what you have is valuable. The minute Jumpstart invests in you, you become investable. Your valuation will grow from that point, and it is likely you will get further in a shorter period of time in your fund raising process than you would otherwise. Raising money is very much a trust thing, and you have a better chance of raising money if you are a known entity amongst investors. Because Jumpstart is in the Techstars Network, that also means you can go beyond Nashville in your fund raising efforts with greater ease.

Finally, the mentorship and the 14 week program will simply propel your company to a point of real value faster than you *probably* could alone. Again, I’m speaking mostly to first time founders here.

5. Collective Achievement – You will be part of a class of founders, learning and growing together. There is no doubt that this will be one of those life events that will create lifelong friendships, because you will go to the wall with these other founders. You will inspire each other, challenge each other and help each other. We realized that this was a big missing factor in Jumpstart last year when we funded one company a month, and we are very excited to have all six companies launching at the same time.

6. Jumpstart Lab’s Ruby Training Scholarships – We’ve partnered with the great folks at Jumpstart Lab to provide Ruby training to the Nashville community. In addition to that partnership, Jumpstart along with Centresource and the NTC are sponsoring several applicants with 100% sponsorships to this training that starts next month. We want (read: need) more coders to have a healthy startup ecosystem, and there is no reason that you can’t learn how to build a prototype just because you haven’t done so before. Apply, and you could at least get free Ruby training from the best in the biz.

7. Lean Startup / Customer Development in PRACTICE – You’ve probably heard the buzz words, but have you ever actually run through the Build-Measure-Learn loop? If you are a Jumpstart company, you better believe you will. We are going to iterate fast, build cool stuff, and get out of the building and learn about what works and what doesn’t for 14 straight weeks until you reach a product market fit with a paying customer to prove it.

8. Real Training on Pitches and Term Negotiations – We are bringing the real investors in as mentors to help you through this process. This is invaluable stuff. You can’t imagine how much time and money you can save by having good guidance from the guys and gals on the other side of the table up front. This friendly environment will be unique to Jumpstart considering the breadth of Investors we are bringing together (again, it even surprises me all the people that are signing up).

9. JSF Angels – Jumpstart is creating an angel network, and your deal will be seen by that network. More on this later…

10. JSF Investor Day – We are going to assemble investors from all over the Southeast (and maybe beyond) to see you pitch in Mid-August. This is a big deal. Just ask the companies who pitched at 1st Pitch at the EC last year. Several of them are already funded, and that was a very impromptu event. This one will be killer.

That’s my top 10 for applying to Jumpstart this year. I hope I made an impact on your thinking about Jumpstart and how you fit in the Foundry. If you were considering before, and are ready to accelerate your career as a startup founder, I want to encourage you to apply now. It is a one of a kind opportunity in Nashville to give yourself the best shot as a startup founder. I know from experience.

Well, what are you waiting for! APPLY!