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The Brandery's New Accelerator "Deal": $50,000 Per Company

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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.

If you’re interested in learning more about The Brandery Accelerator, go to brandery.org/accelerator, or apply now.

Meet the Mentors: Joe Medved, SoftBank Capital

1. Tell us about yourself! Who are you and how are you involved with the Brandery?

I am a Partner at SoftBank Capital, a venture capital fund focused on mobile applications, social media, ecommerce, online advertising, gaming, and cloud computing. I have been a mentor at the Brandery since its inception. Dave Knox, who had been a great mentor to companies in our portfolio, encouraged me to join the program when it launched.

2. Why are you passionate about the startup community in Cincinnati?

I grew up in New Hampshire but my parents both came from Cleveland, so I have personal ties to Ohio and great fondness for Cincinnati (except when the Bengals are playing the Browns). Dave, JB, Rob and Bryan laid out a vision that would leverage Cincinnati’s industry leading consumer companies and wealth of design talent. The timing was perfect given the evolution of the web, as open source solutions and utility computing leveled the playing field a bit on the infrastructure side, enabling a new wave of innovation at the application layer. Great branding and design, which the Brandery and Cincinnati represent, are the key elements to differentiation at this layer of the stack.

3. As a specialist in investments and venture capital, what is your biggest piece of advice for applicants and aspiring entrepreneurs?

One of the most important things an entrepreneur does in his or her company’s infancy, is to hire the right people to build their team. The same diligence that is put into the recruiting and hiring process should be applied when selecting mentors and investors. Having the guidance of Mike and the team at the Brandery can help entrepreneurs identify the mentors and investment partners that are optimal for their business goals and culture.

4. If you started a company, what would it be?

Many of the greatest startups, particularly on the enterprise side, are built by people that are attempting to solve a problem they’ve experienced firsthand. Being a VC is an incredible job, but one pain point in the job is email. We network with an extraordinary number of people in order to help our portfolio companies and identify new entrepreneurs to back. I am constantly behind on email and feel bad about responding slowly. My dream company would be one that completely disrupts email with a more efficient form of communication.

5. What are your goals for the Brandery as a mentor?

My goal is to share my perspective in areas where I have significant experience and to help make connections with experts in areas where I don’t. One of the things that I learned early on as a VC, from my partners who had decades of experience operating and investing, was to understand your strengths and weaknesses as a mentor. Just because you help control a lot of investment dollars, people may assume you’re an expert on every facet of being a startup, or worse off, you may believe it yourself! Our team has investors from a variety of backgrounds, ranging from sales to product to tech to finance. We aim to leverage those talents across our portfolio, and I try to take the same approach to my mentorship role at the Brandery.

My goal as a mentor representing SoftBank Capital is also for us to find great companies to invest in, which we did recently with FlightCar. I mentored the team at the Brandery, and we are thrilled to be investors in the company. The Brandery helped the brilliant young team at FlightCar craft a powerful brand message that is clearly resonating in the market.

For more information about Joe Medved or any of our mentors, visit www.brandery.org/mentors!

How Incubators Speed the Start-up Process

This past week, Inc Magazine wrote a great series of articles on “”http://www.inc.com/magazine/20100701/revitalizing-the-american-dream.html" target="_blank">Revitalizing the American Dream" that talked about how we could all help create thousands of new companies and a million new jobs.    Interestingly enough, step #4 was to “Speed the Start-Up Process” that said:

Most start-ups don’t need much money to get started. But that doesn’t mean they don’t need help. That’s where incubators and seed accelerators such as Y Combinator in San Francisco and TechStars in Boulder, Colorado, come into play. Investors, entrepreneurs, and city officials across the country should jump on the bandwagon.

This call for more start-up incubators / seed accelerators, is at the heart of why we are launching The Brandery.   As the article states, “There are a couple dozen seed accelerators around the U.S. ”text-decoration: underline;“>We could use a whole lot more. The key to getting started is a great group of mentors to draw people in.”

We are fortunate to have an amazing group of mentors that are part of our program.  I would argue that the companies that become part of The Brandery will be working with the best consumer marketing minds anywhere in the country.  This includes mentors who have led billion dollar brands, agencies that have created Cannes Lions winners and entrepreneurs who have raised millions of dollars in funding.

It is no wonder that Cincinnati was called out in the article when they wrote:  “Indeed, it’s easy to imagine an accelerator in every industry hub: a fashion incubator in ”Manhattan" href=“http://www.inc.com/topic/Manhattan”>Manhattan; a consumer products accelerator in, say, Cincinnati."