How Boulder began building a startup eco-system
June 26, 2008
The conversations we are starting here on this blog, in person throughout the week, via phone all times of the day and through our startup happy hours CAN lead to something great. Boulder’s ’startup eco-system’ started with a simple email. David Cohen and David Brown started TechStars in Boulder as a way to help seed stage companies get their start. The program has helped turn Boulder into a hotbed of startup activity. Read more about the program here. Here is the email that started it all:
From: David Cohen
Sent: Wednesday, February 08, 2006 10:12 AM
To: David Brown
Subject: boomtownI’m just thinking this can be one of the boomtown businesses.
Providing seed capital to startups with only an idea.
The concept:
1) We take applications on the web site. Only seed stage companies need apply (those with passionate people and an idea, but no way to get going or who are not sure they can do it on their own – maybe just need a kick in the ass and someone to believe in them)2) We fly or drive to interview the ones that sound good (perhaps organizing small tours), or have them come here on our dime.
3) We offer the promising ones $10k for a 2% non-controlling, non-board seat interest of their company. They have to come to Boulder for 2-3 months to start the company up.
a. They can work in our offices, or in a hotel, or wherever they want. We provide internet connections, a little office space, etc.
b. They can use the 10k however they want.
c. We have the option to buy 2% more of the company for another 10k at the end of the 2-3 month period.
d. We provide free consulting while they’re here including product feedback, how-to advice, etc.
e. We organize weekly (or bi-weekly) dinners with investors, IP lawyers, tech experts, etc (basically using our contacts to get people to donate a little time).4) Based on how they do while they’re here, we decide if we want to invest more or not when they leave. This should be easy, since you’re really evaluating the people as much as the product (do they work all hours, do they have passion, etc)
5) If they want, they can stay in Boulder and grow their company here, working within our office space (renting it). Perhaps we have some kind of “space, connectivity + consulting” lease rate.
The only drawback I can think of is that we’d probably need to get a slightly nicer office to really attract companies. We’d have to look successful, and have an environment with couches, whiteboards, etc for them to work in optionally. But we could grow that over time once we get a few and have a good feeling that it’s working.
I am thinking I’ll start working on the web site. Are you cool with putting this kind of info/offer up on the boomtown site? We don’t have to actually do it, I suppose, but we can at least start taking applications and see what’s what. Maybe generate a little word of mouth somehow, and who knows. We can start with a summer program this year. Sublet or rent some open office space from this place for just 3 months or something. Start trying to spread the word a little bit on college campuses, especially CU, CSU, DU, etc.
Thoughts? I think it sounds really cool. Yeah, we have no idea what we’re doing.
