Why Did We Found An Incubator In Las Vegas?
I firmly believe that local startups need to have an access to new ecosystems, new investors, new markets. This need should be satisfied by a well-thought and well-designed structure.
Since we are building such a structure, we must analyze startups' lifecycle deeply. And, I'm going to explain how Innosance fills in the stages of their lifecycle.
Even though there are minor different uses of terminology, the image from Startup Commons below summarizes this lifecycle precisely.
Also, I'll add another lifecycle curve from financing perspective.
The availability of physical infrastructure, right mentoring, and smart money determine the rest of a startup's life.
We provide startups with accommodation and co-working space. One of the reasons for us being in Vegas is to provide these services to startups at a very low cost. While an entrepreneur in Bay Area needs to cover his/her costs of living around $4-5K, it is definitely no more than $1K at Innosance's office with accommodation. This simply means an entrepreneur can survive in Vegas for 4-5 months period, instead of 1 month in Bay Area. So, this enables startups to overcome challenges in ' Valley of Death' much easier until getting a major investment.
By the way, if you have a meeting in Bay Area or LA, you can fly in one and half hour and pay only $100-150.
Training & Right Mentoring
Startups make their own decisions in the first and last stages shown above. But, from Committing to Scaling, well-designed trainings and right mentoring enable them to save considerable amount of money and time. We can list the subjects on which startups need mentoring as follows:
· Building a business plan
· Entrepreneurial Mindset
· Product Design & Development
· Lean Startup
· Growth Hacking
· Investor Pitching
The best trainers and mentors are those who are entrepreneurs themselves again but seasoned ones and industry experts. As Innosance, we designed Startup Fundamentals Program in which trainings on these subjects are delivered by seasoned entrepreneurs, industry experts to startups at Concepting, Committing, Validating stages.
Another strategic advantage of being in Vegas for startups in travel/hospitality, entertainment, gaming, and esports fields is that they can reach out to early adopters, industry experts, investors very quickly.
Sales & Operations
Before moving on to funding part, I must emphasize one subject. There is a stage which is not planned with a realistic approach even theoretically and takes much longer than foreseen. This is sales, marketing and operations before a VC funding. Turning the idea to a business plan, founding the company, designing and developing the alpha version are the stages where things get done quickly. And, it has its unique excitement that keeps you motivated and moving on. But, Validating stage, where entrepreneur's idea, product, sales model is adopted by early adopters or not at all, is extremely difficult for those startups who don't have the ability to pivot and develop rapidly.
Since startups start visiting customers at this stage, there is no escape from increasing S&M, R&D, G&A expenditures. Consequently, the excitement fluctuates. If a major angel investment or VC funding is not raised during this period, starvation begins. At this stage, startups realize that delivering their value proposition is beyond their idea, product, sales model. It is rather production, installation, technical support, supply chain which has very small room for mistakes.
As Innosance, we provide startups with business services to overcome the challenges of this stage. This is especially vital for international/immigrant startups.
A seedfunding is more than welcome in Committing/Validating stages since founders spend their own money and take care of the others. In order to keep the founding team together, developers and early employees in the company, and to cover OpEx, this initial funding is absolutely necessary.
After getting product-market fit, angel investors can help startups scale the business by leveraging their resources and strategic connections. Therefore, startups can get rid of Valley of Death, and get more testimonials to build their brand.
As Innosance, we provide seedfunding to those startups who have the right founders and the product. Also, we connect startups to our angel investor network in US, China, and Turkey.
Each and every one of these stages requires a different set of skills, experience, network, resources. So, we choose the right partners to contribute more to startups' journey.
Workinlot's scalable and customizable platform provides entrepreneurs with a broader perspective, speed, know-how, and sometimes a co-founder while ideating, concepting and committing.
Social Enterprises provides a great guidance to those entrepreneurs who want to setup their business in US. They either provide professional services or advise on every details of legal paperwork.
TESTBED.VEGAS through their Vegas Travel & Hospitality Tech Meetup brings together like minded people from across the industry sector with a technology focus. TRAVHOTECH, the professional arm of TESTBED.VEGAS provides specific expertise for companies wanting to deliver products into the travel & hospitality industries. Mark Fancourt, Co-founder noted, ''We’ve invested decades in our technology careers in travel and hospitality around the world and in Las Vegas. Our view is that Las Vegas is a prime destination for young and medium sized companies looking to make their mark on this industry. It motivated Cheyne and I to develop infrastructure here that would create a supportive environment. We’re excited to be involved and provide our expertise to help companys along that path.''
We will announce new partnerships to our startup ecosystem soon.
We have founded Innosance to provide startups with the access to new ecosystems, new markets, new investors through our well-established structure.
We are inviting all startups to meet up and to join our programs.
August 16, 2018