First came a name change for their tech business accelerator. Now partners Dave Neal and Chris Heivly are considering the possibility of taking their Startup Factory concept to other markets.

The two, who launched Triangle Startup Factory in 2010 with some $5 million in funding from West Coast investors, recently changed the name of their business to The Startup Factory. A new group of six firms begins the Factory’s three-month program with $50,000 in immediate funding as of today.

Now, Heivly says he and Neal are mulling whether the Factory concept might work in other markets. 

The Skinny asked Heivly if he and Neal were growing more excited about their concept and if they thoughts of expanding or seeking more funding or partners.

“Yes,” Heivly replied. “We recently took more space in the Underground.

“We recently visited St. Louis to check out their startup scene and get asked frequently to consider expanding into other geographies.

“We see more and more opportunities to leverage our position here in the Triangle as well.

“We will see what pans out.”

The Factory has called the American Underground at the American Tobacco district (which is owned by Capitol Broadcasting, WRALTechWire’s parent) since its launch. 

In a press release about the name change, Heivly noted that the Factory – or TSF – is competing with nationally known rivals.

“Both Y Combinator and TechStars are obviously juggernauts in our industry,” he explained. “However, despite their prominence and the proliferation of newly born accelerator programs, TSF has continued to mature and prosper. It is exciting to see our program grow. We are most proud of the overall quality of our investments.”

Heivly likes what he sees in the new group of firms announced Monday.

Broader Appeal

The name change may already be helping in draw more interest to the Factory.

“We received over 150 applications, an increase of 35 percent for entrance into the program from local, national and international teams,” Heivly said.

Among the applicants, 48 percent came from outside RTP which is 17 percent higher than the applications received this spring and 21 percent higher than a year ago.

Another 5 percent came from startups outside the U.S.

The New Group

Asked what he liked most about the latest group, Heivly noted: “The overall quality and experience of the founders continue to go up.”

“Not sure whether this is seasonal but this group reminds me of last fall,” Heivly explained. “They are a little bit older, have a few experiences under their belt or already have some traction.

“One group went through a Philadelphia accelerator (Dreamit).

“One has 500,000 downloads for their 18 apps.

“One has had a successful exit before.”

Hevily pointed out that the entrepreneurs involved “a few have significant traction already.”

Traction means deals; deals mean revenue.

So far, The Factory has enjoyed a great deal of success with 16 firms selected in three previous groups.

“Fourteen of 16 are still operational,” Heivly says. He also notes that “40 percent have raised additional funding” beyond the $50,000 in seed capital provided by the Factory.

However, none has yet to land institutional funding.