Frequently Asked Questions
How much funding do companies in The Foundry program receive? You’ll receive $15,000 in seed funding. We’ve proven that this is plenty of money to survive for three months and to crank out a substantial prototype so you can get to the next level. You also get a free server hosting, a nice work space, legal services and a great slate of services from which to choose. Finally, there is immeasurable value in the connections and advice that you’ll receive when you start your company with The Foundry program, and also in the opportunity to pitch to angel investors and venture capitalists at the end of the program during our Investor Day.
What sorts of companies do you fund? We are looking for tech-inspired companies, typically web-based, mobile application or other software driven, focusing on the areas of healthcare IT, data services or social engagement tools. Nashville’s standing within the healthcare community makes the city a hotbed for opportunity in that field, and the need for improved data systems services and the next big social engagement tool will always exist. We’re also looking for companies that can have national or worldwide reach. Specifically, we don’t fund medical device companies, biotechnology companies, restaurants, consultancies, or other local service oriented companies.
Who’s behind the program and why are you doing this? Jumpstart Foundry grew out of a group of investors gathering together in 2010, and funding seven different companies, one at a time, over the course of the year. As we looked around the micro-fund landscape and saw the success other firms were having with the cohort learning model, notably our friends and now partners at TechStars, we adopted that model and focused it on the three areas listed above — healthcare IT, data systems and social engagement tools.
Why does Jumpstart Foundry need and want stock in my new company? Like you, we’re entrepreneurs. We think that the value of the learning, networking, and coaching provided by the program is of tremendous value. The Foundry program will provide you with the healthiest possible start and greatly improve your chances for success and sustainability. Once we invest, we’re motivated to help you succeed by introducing you to people who can help, assisting you with strategy, finding more investors, and generally helping you to succeed. That’s a good deal for both of us.
Do I have to be there for the entire summer? No. It’s your company so you can come and go as you see fit. But we do require that you be primarily based here during the program. This benefits you because you can take advantage of the numerous learning opportunities, networking and coaching that will be provided. The Foundry is a major commitment, and we expect you to be around most of the time.
Do I have to stay in Nashville when The Foundry program ends? No. It’s your company, so you’ll live where you want to. However, we think you’ll find Nashville to be both an excellent platform from which to launch your business, and a terrific place to live to boot. (Get it? “Boot”? Country music? No? Not so much?)
How can we get funded after The Foundry ends? We provide the seed funding to get you going, but you may well need more funding to really make it. Near the end of the 14-week program, we’ll organize an Investor Day where angel investors and venture capitalists from all over the country will check out your technology and listen to your pitch. We’ll coach you so you’re as effective as possible, and do everything we can do help get you follow on funding. We may also fund your company further ourselves in some situations.
What if my company doesn’t ultimately succeed? Well, at least you tried. Because not just anyone is accepted into the The Foundry program, you’ll have an impressive resume item for your next gig that will look way better than almost anything else you could have spent your time doing. And you will have met a large number of smart and well connected people who can help you tremendously with whatever you do next. Hopefully that will be another startup.
What sort of control am I giving up by granting equity to Jumpstart Foundry? Jumpstart Foundry wants to be viewed as a co-founder. We expect to have all the same rights as any other founder, relative to our minority ownership position. In a nutshell, we don’t want any special or controlling interests in your company. We won’t ask for a board seat or for any uncommon investor rights. You will still run the show.
I’m a single founder. Can I get accepted into The Foundry, or do you only look for teams? While we don’t screen applications just because they have a single founder, it does make things more difficult. We look for great, balanced teams who have a full range of skills. We strongly advise you to seek co-founders who balance your skillset. For example, if you’re a strong developer, you might consider adding someone with business and/or marketing experience. If you’re a great business evangelist with no developer, it’s very unlikely we’ll accept you into the program, so go find a rock star developer to join you.
Where will we live while we’re there? That’s up to you – we don’t provide a place to live. If you’re accepted into The Foundry, we immediately assign someone on our end to help you find housing.
How do you choose which companies to accept into The Foundry program and to fund? We will choose great founders who are proposing products that solve real problems or create meaningful innovations. For us, it’s about the team. Because of this reason, we’re less likely to accept single founder companies. The best things you can do to strengthen your application are: (1) Round out your team with business, technical, and other necessary skills. (2) Make progress on your prototype or product and reference it in the application. And (3) Show us you’ve really thought about your business and have gotten off your butt to do something about it.
Do I need to send in a business plan? Nope. Just fill out the informal online application – that’s all you need for us. In fact, we probably don’t want to see your business plan if you have one.
When is the deadline to apply and what’s the overall timeline? Check the schedule for details. If you apply early enough, we may invite you to attend The Foundry For A Day, space permitting. This is not a required step, but it can be a great way to learn more about The Foundry program (and Jumpstart Foundry in general) and for us to get to know each other better.
What will a typical day be like for a founder working through The Foundry program? It’s your company, so you’ll be hard at work on your product. You can choose to work out of the Entrepreneur Center if you’d like, or you can work anywhere else that you might prefer. About two or three nights a week, we’ll organize informal educational sessions with our mentors. We also expect many of the mentors to drop in to The Foundry at various times throughout the program. In general though, you’ll be working on your product each day, just like all of the other founders in the program. We don’t tell you what to do or when, but we create an environment that is conducive to helping your startup every day. And we’ll make sure you have lots of experienced mentors around to help you.
Can I apply if I’m not from the United States? Yes. As long as you and your team can be in the USA legally for the duration of the 14-week program, please do.
Is my company too early (or late) stage to apply to The Foundry? Almost nothing is too early. One of the great things about The Foundry is that we help you refine your idea and business model. Likewise, no company is too far along to apply (well, maybe Google, but we think we could help them too!).
I’m concerned that if I apply, you won’t protect my intellectual property. Should I be worried about this? We’re certainly not in the business of stealing ideas, and we won’t show your application to anyone outside of The Foundry. Each year, we see hundreds of applications and many of them include similar ideas. For this and other practical reasons, please don’t ask us to sign an NDA. Our application does not ask for your “secret sauce”, and there is no reason you have to disclose this to us if you’re not comfortable doing so.
My team outsources software development. Are we still qualified to apply? Yes. We think it’s best not to outsource what you are, but it obviously works in some cases. We’re happy to consider any application. Just remember that we’re primarily focused on the team.