Chris Heivly and Dave Neal are no longer throwing grandiose launch parties for graduates of The Startup Factory.
Instead, the four companies that presented pitches gathered at the Full Frame Theater in Durham’s American Tobacco District to showcase their products to an intimate audience of nearly 100. (Jason Parker reports on each of the four in another Insider reporter.)
“Pitch days don’t work any more,” said Heivly. “Everyone is doing them.”
As WRAL TechWire reported earlier this month, Neal and Heivly, who co-manage The Startup Factory, intentionally scaled down the event from previous graduation ceremonies. Instead of a pitch day, where companies formally launch their products, the companies showcased to a small audience.
It fits a larger strategy, said Heivly, and it’s better for the individual companies. A small and intimate event gives companies the opportunity to build one-on-one relationships with key members of the Triangle’s startup ecosystem, said Heivly, “because there’s less pressure to have a single magical moment that generates investment.”
Instead, companies were instructed to focus on long-term relationship building with local investors, some of whom were in the audience.
“I don’t care if you label me a cheerleader,” Heivly explained, “but what’s good for RTP is good for me.”
It’s a new mantra, said Heivly, that he hopes spreads to a wider audience in the Triangle. “This place cranks,” said Heivly, “more people here are into win-win scenarios.”
Heivly estimated more than 175 companies in downtown Durham, four of whom showcased on stage.”
Curagami, Knomad, Hostel Rocket, and CareLuLu (featured recently in WRAL TechWire) are The Startup Factory’s newest alumni, capping off the 12-week intensive incubation program founded on lean startup principles.
Including these four companies, TSF has now graduated 26 startups in two and a half years. Of the previous 22 companies to pass through the program, 19 are still operating.
TSF has invested nearly $2.25 million in its companies, Neal noted. Fourteen companies have received follow-on funding, said Neal, totaling $4.6 million.
Is The Startup Factory Fundraising?
Talk continues that Neal and Heivly might expand their franchise, especially if they raise additional funds.
“We’re in our third year of a four-year fund,” said Heivly, “generally, this would be the time that those in our position would focus on raising additional capital.”
He’s not saying that TSF is actively raising a round, but he’s not denying it, either. If you ask directly, Heivly would tell you they’re not raising capital at this time.
Nevertheless, an intimate setting with many of TSF’s mentors, advisors, stakeholders, and area investors seems ideal for Heivly to take his own advice to today’s graduating startups: focus on long-term relationships with investors.
TSF is actively recruiting for their Fall 2014 class – applications are due June 30 – and Heivly is predicting yet another stellar class penned to start the 12-week program on August.
Faces in the Crowd
Name dropping: Attending the showcase were: Andy Schwab, First Flight Venture Center and RTP Capital; Jason Caplain, Bull City Ventures / Southern Capital Ventures; Bob Creedan, Blackstone Entrepreneurs’ Network; JT Vaughn, Cherokee Challenge; Lister Delgado, NC IDEA / IDEA Fund Partners; Steve Monti; Bruce Boehm; F. Scott Moody; Craig Stone; Elaine Bolle; Michael Goodmon; James Avery; and Mark Easley.
