Keynote at Techsylvania 2017

1. accelerators or incinerators
by
pep gómez

2. who am I
@pepgomez

3. what is an
accelerator
program

5. …well, there are
some free
accelerators that
don’t take equity.
how
much it
costs?

6. DON’T EVER
TRUST
FREE THINGS.

7. 5-7% of your
company
-
opportunity cost
what is
the real
cost ?

8. let’s do some…
SELF-ASSESSMENT
DUE DILIGENCE

9. Experience as
founder?

10. Experience as
founder?
Do I have already a
working MVP and
some real metrics?

11. Experience as
founder?
Do I have already a
working MVP and
some real metrics?
In what areas do I
need more help?

12. Experience as
founder?
Do I have already a
working MVP and
some real metrics?
In what areas do I
need more help?
Is time-to-market
important
for my product?

13. Experience as
founder?
Do I have already a
working MVP and
some real metrics?
In what areas do I
need more help?
Is time-to-market
important
for my product?
Is my product
rocket science?

14. Experience as
founder?
Do I have already a
working MVP and
some real metrics?
In what areas do I
need more help?
Is time-to-market
important
for my product?
Is my product
rocket science?
Am I able to raise
private money?

15. Experience as
founder?
Do I have already a
working MVP and
some real metrics?
In what areas do I
need more help?
Is time-to-market
important
for my product?
Is my product
rocket science?
Am I able to raise
private money?
If so, at what valuation?

16. Experience as
founder?
Do I have already a
working MVP and
some real metrics?
In what areas do I
need more help?
Is time-to-market
important
for my product?
Is my product
rocket science?
Am I able to raise
private money?
If so, at what valuation?

17. IN CONCLUSION:
How much is my company
worth?
FORMULA
( company valuation post acceleration -
company valuation today ) > acceleration cost

18. MYTHS AND REALITIES
OF ACCELERATION
PROGRAMS

19. There are 3 type of
people who make a
difference for your
company in an
acceleration program:
MENTORS
ENTREPRENEURS
IN RESIDENCE (EIRs)
THE GUY WHO
SIGNS THE CHECK

20. MENTORS
How much time will
they dedicate to the
program?
How big is their
portfolio of
“mentees”? Are they
“fresh”?
Are they
professional
mentors?
Are there enough
mentors in the areas
where you think you
need more help?

21. Are legit and
respected.
Are rich ($$$$) .
So they don’t try to sell
you anything and can
invest in your company at
a personal level
Will work full time
during your program
Are being paid, and
ideally have an
upside incentive
ENTREPRENEURS IN
RESIDENCE (EIRs)
MAKE SURE THEY…

22. Are legit and
respected.
Are rich ($$$$) .
So they don’t try to sell
you anything and can
invest in your company at
a personal level
Will work full time
during your program
Are being paid, and
ideally have an
upside incentive
ENTREPRENEURS IN
RESIDENCE (EIRs)
MAKE SURE THEY…

23. TIP
Write an email to 3-4
mentors/EIRs of the program
to ask for opinion. Try to set
up a conference call or Skype
as they will mostly lie by
written.

24. and…

26. FUNDING

27. There are
two kind of
acceleration
programs:

28. The ones who…
put their money
where their
mouth is.

29. The ones who…
DON’T

30. Good to know
they invest !
but the devil is
on the details…

31. How much they
invest?

32. How much they invest?
In exchange of
what?

33. How much they invest?
In exchange of what?
Do they have
money for
follow-on round?

34. How much they invest?
In exchange of what?
Do they have money for
follow-on round?
Is there any
surprise ?!?!

35. TIP
Run away from those who
promise investment at the
end of the program, or “access
to top notch funding” or
investments in-kind (services).
In general, don’t trust anyone
who’s not upfront.

36. Who do they co-invest
with?
Who’s behind the
program?
Who attended previous
demo days?
How many applications
do they receive?
look at…

37. TIP
The only thing that matters in
venture capital are returns.
Returns are driven by the
best companies.
And collected by the top 5%
of VC funds. The rest are pies
in the sky.

39. METHODOLOGIES

40. METHODOLOGIES
The best
methodology is no
methodology.

41. METHODOLOGIES
People focused on
growth (been-there-
done-that) and trial-
error is what works.
The best
methodology is no
methodology.

42. METHODOLOGIES
People focused on
growth (been-there-
done-that) and trial-
error is what works.
A magic
formula
doesn’t exist.
The best
methodology is no
methodology.

43. METHODOLOGIES
A few basic musts:
Weekly meeting with
the EIRs and
acceleration team
Office access with
full snacks, drinks and
24/7 is better
Punctual scheduled
quality meetings

44. TIP
While applying to an
acceleration program, ask for a
detailed provisional calendar of
the day-to-day. This will help you
to consider if they’re really
moving the needle of your
company from 0 to 1.

45. CULTURE / ALUMNI

46. CULTURE / ALUMNI
Check prior alumni.
Crunchbase data,
evolution, metrics.

47. CULTURE / ALUMNI
Check prior alumni.
Crunchbase data,
evolution, metrics.
Call the founders and
ask them for their
opinion. Ideally call the
successful ones,
the losers will
always blame the
program :)

48. TIP
Alumni works when we’re
talking about statistical
data. A program can have
500 companies invested.
One successful doesn’t
mean anything.

49. WHO PAYS
THE PARTY

50. WHO PAYS
THE PARTY
PRIVATE MONEY

51. WHO PAYS
THE PARTY
PRIVATE MONEY
PUBLIC MONEY

52. WHO PAYS
THE PARTY
PRIVATE MONEY
PUBLIC MONEY
VERTICAL AND CORPORATE
ACCELERATION PROGRAMS

53. TIP
You need to know who your LPs are
and what do they expect from you.
Don’t sign anything that
compromises a future investor,
acquirer or company plans.
You need to be able to pivot,
anyway, anytime.

54. thanks
pep@pepgomez.com