The ‘graduation” – or exit – of emerging companies from The Startup Factory accelerator at a showcase event for investors has been one of the yearly highlights for the Triangle entrepreneurial community. Now it’s being scaled back, as WRAL TechWire reported Wednesday.

Startup factory co-founder Chris Heivly explains says there are several reasons for the change. 

“There are too many Showcases/Demo Days around the country and convincing out-of-town investors to a large event here in Durham was becoming harder and harder,” Heivly says.

“Most importantly, we realized that we would serve our companies better by creating a more direct and more frequent relationships between investors and our companies.

“So we have had smaller 1-on-1 and small group meetings instead.”

Asked if financial considerations were part of the reason for the scaling down, Heivly said they were not.

Heivly and partner Dave Neal emailed invitations to the event on Wednesday afternoon and disclosed the changes.

“The event is being scaled down from previous years and will only include investors,” they wrote.

Past events have included a program of speakers and discussions about trends in startup financing. However, Heivly said after the Showcase was moved to Raleigh last fall and drew a disappointing crowd that The Startup Factory might make changes.

The event is set for Wednesday, May 28, from 5-7 p.m. at the Full Frame Theater, which is located at the American Tobacco Historic District. The Startup Factory is based in the American Underground.

Registration is by invitation only.

Four firms were selected for the latest group of companies. Each receives $50,000 in seed funding and can obtain additional financing from The Startup Factory.

The four “cohorts” as Heivly describes the most recent selections are wrapping up their accelerator program. But that doesn’t mean Heivly and Neal will no longer be involved. 

“They all will finish the formal part of the three-month program,” Heivly explained. “We work with ALL of our portfolio in various levels.”

Heivly notes that 18 of the first 22 firms funded by The Startup factory “are still active.” Importantly, most are doing well in seeking follow-on financing.

“Of those it looks like 11 of 22 have raised additional funds outside of TSF,” he says. “That ratio is higher than the [accelerator] national average (I hear) of 25-30 percent).”

Expansion of The Startup Factory and the raising of more money also remain possibilities. 

“No word yet,” he says, “but thanks for asking.”