Ohio startups that approach an Ohio Third Frontier backed incubator or fund and get turned away shouldn’t feel discouraged in their endeavor to start a new business or think about leaving Ohio to find the startup capital that they need. The Ohio Third Frontier backed organizations have very narrow and specific goals when making investments into companies. These organizations are measured on engagement and the success of the investments – not to mention only investing in tech-based companies. This ends up creating two competing goals. They want to make safe investments with grant dollars, but they also want to talk with as many startups at they can and keep them in their sphere of contacts. Sometimes this creates false hope for the entrepreneur. They might be talking to you, but they might not actually want to invest in you.
Most of the Third Frontier backed incubators get up to 800 companies reaching out to them over a given calendar year, 200 being engaged with, 100 being taken into their various shaking-out programs, and 20 or so actually getting some kind of investment. That is a 2.5% chance that you will get an investment from one of these programs. Not the best odds and maybe that investment isn’t the full amount that you need to be fully capitalized.
However, a lot of the cash that many entrepreneurs think they need might actually be too much. If you need to hire a web developer as a contractor or employee, you need cash to do it. What if you brought in a web developer as a partner and give them an equity stake in the company and maybe a bit of cash? This idea of bartering, trading, and sharing resources is nothing new in the realm of starting up a business, but it has been eclipsed by the idea that everyone needs venture capital or some kind of investor class money – when in reality you just need the venture resources of connections and talent.
That’s where SunDown comes in. We help make connections to investors, mentors, and talent to be able to help take your idea to the next step. We don’t charge you to come make a pitch at one of our events and we don’t create long, drawn out programs. Our goal is to help you make connections and get out of the way as fast as we can. Its your company, its your dream, we are here to help.
Don’t be discouraged, keep going. SunDown is a friendly rest stop in your journey. Come check us out.