Techstars

Wildly 41

I turn 41 at 1:41PM EST on May 19th, 2023.

As I reflect on a few recent birthday wishes, my 33rd birthday wish was granted, there’s less anticipation and a compelling sense of retirement from 39 remains on tap, and this year’s birthday definitely feels less poetic than Eclipsing 40, but I’m still here. Let’s celebrate.

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What’s one word to describe your work?

One word to sum up my work this year, is wild. I remain thankful for the privilege to perceptually learn through the art of connection, content creation, and exploration on the frontiers of technology. Here are a few ways we’ve continued to collaborate together!

Along with the wild in my work, I’m just as grateful for the health and happiness of family and friends. There are countless milestones that have brewed joy in different ways. While most will remain cherished without sharing, here are a few memorable moments that have art to accompany the adventure. Stay wild my friends!

©1982-2023

By Ben McDougal, ago

Training Wheels

When training wheels come off a child’s bike, it’s a breakthrough moment.

Learning to ride a bicycle was not as easy as it looked. The early excitement of that new bike was bolstered by the comfort of training wheels. These little stabilizers provided balance, but eventually became self-limiting. Whether you remember learning to ride a bike or have helped a little one figure it out, the urge to remove such limitation forms fast.

Removing training wheels only takes a minute, but then fear sets in. The challenge of staying upright, maintaining speed, avoiding obstacles, and falling without getting hurt feels overwhelming. Even with the support of others, success seems out of reach, until it clicks. Like magic, trepidation transforms into gliding independence.

Moving beyond the comfort zone that training wheels provide children, reminders us how wonderful it feels to overcome hardships. Considering how easy it can be to leave training wheels on too long, also awakens thoughts of how contentment can lead to complacency.

Being content without becoming complacent is a constant test. One moment you’re grateful for all that is, then soon you’re wondering why you feel oddly stuck. Perhaps this is because the more complacent we become, the more rigid we get. This rigidity often devolves into a stronger fear of change. When the movement that comes with change becomes associated with risk, it’s common to feel stuck, stagnant, or even irrelevant.

If training wheels are holding you back, initiative can set you free and persistence will keep you moving. When movement is gratifying, even when it’s hard, you’re set free to keep shifting gears as you ride toward what’s next.

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It was energizing to see so many friends at #TSDemoDay! This was a community celebration and milestone moment for entrepreneurs pushing beyond their own comfort zones, as this 2022 class emerged from the Techstars experience.

By Ben McDougal, ago

Venture Studios

Venture studios work with different startups to activate a portfolio of ideas into reality.

They invest financial capital, then use a long-term lens to enhance the chance for traction by pouring resources into each startup they invest in. A compounding collection of services are provided within these funds and full access helps everyone building together, often in sprints.

The compressed nature of the building process makes venture studios somewhat comparable to accelerators, yet with an extended, almost open-ended timeline. This emerging model can also be used as a form of due diligence for venture capital funds. While there’s still a lack of standardization and wonky economics have some investors questioning the long-term mechanics of such an approach to investing in startups, it’s no surprise that the innovation economy continues to drive fresh approaches to raising financial capital through the art of supporting entrepreneurs.

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This caffeinated contribution was written by Miles Dotson. I met Miles through mentor madness with Techstars. We bonded over our shared interested in this emerging approach to supporting entrepreneurship. Miles co-founded Devland, which is an investment company that focuses on new innovative ventures with brilliant technologists and wildly underestimated entrepreneurs. Devland provides an alternative mix of investment pathways for committed entrepreneurs with program guidance and direct funding through Series A.

The builders venture studios can attract, do not always have familiarity with venture capital and the language of finance. Whether you call them venture studios or startup studios, the word “studio” gives them the sense that there is a seat for them, regardless if they have a passion for a new idea or if they have formed initial traction. Terms, timelines, and investment theses vary between venture studios, as they should, knowing each company and fund provide different strategic values. After years of experimentation, our team is currently using the venture studio approach to conduct due diligence over an average of 14 months, working alongside builders, getting in the trenches with them, and advocating for their growth. This provides a much better gauge of the entrepreneur as a corporate builder, leader, and team builder — further validating our cause to invest and market them to firms upstream from us.

To bring this short intro to venture studios together, we can think about this as a validation-led approach to venture capital. The intention is to discover outsized returns from potentials who do not generally have network into the world of capital, relationships, and resources needed to build a market leading business. We are operators, product leaders, and venture capital thinkers who understand the role startup creation plays in the market. Our goal is to illuminate repeatable paths that often result in early acquisitions, stable long-term growth, or public market entry while improving the average cost required to create that outcome.

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This has been a fun little series, brewed around a few interesting actors within entrepreneurial ecosystems. There are many more key actors, factors, and instigators throughout any startup community, but we hope you’ve enjoyed this sip of awareness around Accelerators + Incubators + Coworking + Venture Studios. As always, subscribe to Roasted Reflections and stay tuned for what’s being poured next week!

By Ben McDougal, ago

Accelerators

Accelerators are incubators on steroids.

These programs recruit scalable companies that have shown early promise. They coordinate dramatic transformation within a compact timeline.They are like early-stage investment firms, as they provide seed funding in exchange for equity. Accelerators hedge bets by connecting entrepreneurs to resources, mentors, customers, investors, and community allies.

The rise of the accelerator model is interesting. Accelerators help entrepreneurs build stronger companies, but they need money to function. How do they support the financial investments in each company? What about staff salaries, community events, and all the resources they provide? There’s usually an initial fund raised to start these programs. Some accelerators also have financial infusions from sponsoring organizations. With this financial foundation in place, accelerators then depend on the performance of the companies in their portfolio. When a portfolio company is acquired or exits, the accelerator’s equity converts to cash or ownership options in more successful businesses.

As an accelerator’s portfolio performs, its reach widens and the program prospers. This motivates program directors to pick the right companies. It also gives founders the confidence that the experience is built for them to succeed. These complementary relationships are how accelerators make a lasting impact in less time.

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Incubators vs. Accelerators vs. Venture Studios vs. Coworking

For entrepreneurs, so much potential makes it easy to fall in love with the idea of being an accelerator-backed company. As business owners consider applying to accelerators, it’s important to understand the terms. When startup accelerators first started in 2005, they were industry agnostic. As this collaboration-based investment strategy has evolved, industry-specific accelerators have also emerged. This means there are more accelerators than ever and not all of them will be the right fit. The educational, networked, and cultural experiences matter. Entrepreneurs must vet accelerators like they would other equity investors. Do terms of the accelerator align with the long-term goals of your company? Will the implied results outweigh an intense time commitment? Even if it’s temporary, will the team be required to relocate? How deep is the network of fellow founders who have worked through the accelerator? Do portfolio companies stay connected? If so, how does that connected landscape support your work beyond the program?

The accelerator experience can be life changing for a startup. Based on a deep understanding of each company, these action-packed programs #GiveFirst and help build on what’s working. They also quickly identify areas for improvement. This empathetic support combined with a shared mission to grow allows accelerators and their portfolio companies to be more successful as everyone collectively builds to go big.

By Ben McDougal, ago

Shifting Gears

Can you hear a distant motorcycle bolting into the night?

Hearing the sound of speed puts that wind in my face, but twas the night before we kicked off the 2022 class for Techstars Iowa Accelerator. This had me reflecting on the gear shifting that occurs in any growth process.

That first gear of any manual transmission is dedicated to initiating motion. It won’t get you very far, but as the red line arrives, a shift bring you into the next gear that builds on the momentum. As that next gear tops out, yet another shifts moves you further, with higher gears that eventually brings you to full speed.

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I owned a fast motorcycle in college. I treated the danger with redeeming respect, but after pushing this Yamaha FZR600 to 150mph, it was time to sell it…on eBay. In addition to speeding up, shifting gears also helps us slow down. Now I’m more of a convertible guy, cruising toward that wonderful wind in my face.

Any journey is a dance, but your destination would not have been reached without an ability to temporarily lose power in exchange for more lasting capacity.  Whether it’s personal or business growth, intellectual humility and recognizing when you’ve reached a limit, provides awareness required to drop the clutch.

By Ben McDougal, ago