This summer, the sixth cohort of companies will be joining us at The Brandery. What an amazing first five years we have had (note: information on our five year anniversary celebration will be forthcoming – you need to be there)! Five years later, we remain more focused than ever on our mission of accelerating startups by building powerful brands. Our core approach of layering inspiring brands on top of dazzling technology and driven founders has proven to be a recipe for success. Like the beef Bolognese recipe of your great-grandmother, we are less than enthusiastic to make adjustments to the formula.
But, who are we kidding? We’re an accelerator — evolution and retooling shouldn’t be limited to our portfolio companies. Excellence can be found in rational and thoughtful change. As such, in 2015 we will be announcing some core changes to our accelerator program that will provide our participant companies with an even stronger platform to grow.
We are excited to announce our sixth cohort of companies will receive a total of $50,000 of capital from The Brandery. This will be split into two tranches: (1) $25,000 in for a six (6) percent warrant upon beginning the program, and (2) another $25,000 through an uncapped convertible debt note to each company that completes the sixth week of our accelerator program.
Some accelerators offer more cash than The Brandery and some offer less, but after having 45 startups go through our accelerator, we believe $50,000 is the right amount. We have always had two juxtaposing beliefs about the capital that we provide companies: first, our companies need enough capital to focus solely on building a great company, and second, The Brandery funding should not provide such a substantial runway that the startup loses its sense of urgency. We believe $50,000 will accelerate our startups to the next step, whether that’s raising a round, bootstrapping with revenue, or moving onto the next thing.
The Brandery has always felt strongly that the “deal” needs to be explicit at the outset. Some accelerators offer more capital but hinge the capital on different performance metrics or, in some cases, the discretion of the accelerator’s investment team. We think this is unfair to the startups because it does not provide them with the ability to plan their burn and so that there is not an investment decision that adversely impacts the relationship between the accelerator and its participating founders. As such, the second tranche of $25,000 will be invested purely on the temporal requirement of each company making it through six weeks of our program.
And that’s not all! We’ll have more big news to break in the next week or two. We can’t wait to share.