Frequently Asked Questions
How do I apply?
Coming soon.
What are the key dates for the program?
Application deadline is June 19, 2009. Initial screening of submissions is completed by the July 1st after which finalists are chosen and phone screenings are scheduled for follow-up questions. Final selections are made by July 15, 2009. The program begins in Phoenix on August 10, 2009 and concludes in November.
What criteria will you use to decide which companies to invite?
Our evaluation criteria is pretty straightforward:
How big and novel is the idea?
Does it address a large and growing market?
Can a prototype or beta product be readied within 3 months?
Are the founders passionate about their idea, smart and open to learning?How does the selection process work?
We will screen all applications using the above criteria. It’s likely that we’ll have some additional questions and we’ll be contacting you as necessary. The screening panel is made up of the partners of TEKcelerate and outside reviewers who have specific domain expertise.
Do you select companies with just a single founder?
We might, but we’d prefer a balanced team that possesses business, technical and other skills. It’s what an investor will be looking for and you’re likely to gain a lot more from the program participating as a team than on your lonesome. However, if your idea is stellar, we may recommend other people to you who can join your team.
How is TEKcelerate different from Angel Investors and VC firms?
Most other funding sources are moving away from pure startup and instead looking for opportunities with products in the market and preferably with revenue. We’re looking for the great ideas and ‘concept’ products – that we can assist in bringing to market and getting follow-on funding (if necessary).
What type of ideas do you fund?
Typically they’re going to be technology oriented – web-based or other software companies. However, we’re open to other ideas that can be rapidly prototyped such as unique consumer products or medical devices. Specifically we’ll pass on biotech, local service oriented and food service ideas.
Is my company too early (or late) stage to apply to TEKcelerate?
If you can define who would buy it, what it will do and how you can build it, you fit our target. If it’s an idea that improves on something already in the market, be prepared to explain why yours is significantly better.
How much will TEKcelerate invest in each company and what percentage of equity will TEKcelerate receive in return?
We’ll usually invest $25,000 per company in exchange for 6-8% of equity in your company. In addition, you will be provided office space, a development environment, mentors to assist in fleshing out your business model, subject matter experts, other successful entrepreneurs and at the end of the program Funding Day where you’ll pitch to angel investors and venture capitalists for follow-on funding.
Why does TEKcelerate need and want stock in my new company?
By having equity in your company, we’re just as motivated as you to make it successful. We’ll surround you with bright, knowledgeable people who have been there and done it before. We will provide an environment that eliminates most if not all obstacles We think that the value of the learning, networking, and coaching provided by the program is of tremendous value. The TEKcelerate 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.
What sort of control am I giving up by granting equity to TEKcelerate?
We’re looking to receive founders shares, just like you. We don’t ask for a board seat or any special shareholder rights. You’re in full control of all decisions pertaining to your company.
Do I need to have a business plan?
No, you simply need to complete the online application. We are searching for novel ideas that can quickly gain traction in the market.
Is TEKcelerate an “Arizona-only thing”?
No. We receive applications from everywhere (including outside of the United States) and where you’re from doesn’t enter into the selection process. All we ask is that you can legally live in the Phoenix area from August through November 2009.
Can I submit more than one application?
Yes, if you have more than one great idea, simply submit an additional application (one idea per application). Please do not submit more than one application for the same idea.
What happens if I am selected to participate in TEKcelerate ‘09?
For starters, congratulations. You’re among the top 3% of submissions as judged by the reviewing panel. Assuming you accept, from August through November you’ll be put through an intense 3-month immersion program to get you from concept to product launch with a fungible business plan.
What services will TEKcelerate provide?
Simply put, nearly all of the resources and assistance you need to get your business off the ground. We’ll make available legal and accounting services, mentoring, office space, internet and server access, advice and input from experienced entrepreneurs and investors, introduction to great business people and contacts to help you get to the next level. With the exception of direct, out-of-pocket expenses (such as software licenses and corporate filing fees), these services are provided at no cost to you. Oh, and by the way, all of the soda you can drink.
Can you tell me more about the networking and educational opportunities?
We’ll host breakfasts or dinners three times a week in which one of our mentors will speak about a topic relevant to emerging companies. We’ll discuss contemporary approaches to sales and marketing, how to build out your team, common terms for investments, licensing deals and joint ventures to name a few. We aim to make these highly interactive and will only have topics that are relevant to your business. About every two weeks we have an ‘examine your navel party’ where we moderate a session where each company talks about where they are, what issues they’re facing cool ideas they’re pursuing. We’ve learned that a significant amount of learning comes out of these sessions and also builds a great deal of camaraderie in the group.
Where will I live and work during TEKcelerate '09?
You will live in the Phoenix area and you’ll choose your accommodations. We will have prescreened several options for you that are convenient and cost effective – but it’s your choice. As to where you work, we have a great office space and development environment for you … but if you choose to work at a Starbucks or wherever, it’s your call.
Do I have to stay in Phoenix the entire time?
Technically no, but so much of the value is participating in all of the educational opportunities and networking. Being around a dozen other entrepreneurs who are going through the same experiences you are is truly an electric environment.
Do I have to stay in Phoenix when the program ends in November?
Nope, it’s your company. That said, Phoenix does have a lot to offer.
Will you help me with all of the legal details of starting a company?
Yes. If you’re not already incorporated, we will handle the incorporation details for you so you can focus on completing your product and developing your business model.
What happens after TEKcelerate ’09 is over?
That’s entirely dependent on you and your company. You’ll complete the program with a product, an incorporated company and a fully vetted business strategy. You will have presented to prospective investors and may have received funding. Where you take it from there is your choice. The TEKcelerate team will be there to provide support and advice as long as you need it … after all, we’re owners in your company too and we have a vested interest in your success.
What if I need more money to launch my company?
A key component of TEKcelerate is Funding Day. On Funding Day you’ll have the opportunity to pitch your product and company to a large gathering of prospective investors. During the preceding three months you will have worked with mentors and strategists honing your business model and your investor presentation. With all of the prep you and your team have undergone, you stand the best shot as an early stage company to get funded.
What is expected of me?
What we ask of you and your team is to work hard, stay focused and be open to input. TEKcelerate is an environment built to nurture great ideas and to build companies. You will put in long days and achieve breakthroughs and experience some setbacks. But, along the way you’ll grow, build some great relationships and have fun!
Does it matter how old I am?
No, good ideas are not age specific. However, if you’re under 18 you will need parental permission to participate.
Will you sign a Non-Disclosure Agreement?
No we won’t. We review hundreds of business plans and product ideas, so it’s not possible for us to sign NDA’s. We ask that when you submit your application, only provide us with the level of detail that you feel comfortable disclosing. If you end up being selected to participate, one of the first sessions we offer is how to protect your ideas and intellectual property.