SURGE Accelerator Overview

download

of 24

Embed Size (px)

description

SURGE Accelerator, a member of the TechStars Network, is a mentor-driven seed accelerator empowering entrepreneurs solving the worlds energy problems using software. Based in Houston, The Energy Capital of the World, SURGE Accelerator rapidly assists companies innovating and exploiting the massive shifts in technology, policy, and expertise taking place in the traditional energy industry by providing them with the seed funding and connecting them to the capital, expertise, customers, and the energy eco-system. SURGE will assist entrepreneurs innovating in three primary segments Smart Grid, Energy Trading and Risk Management, and the Digital Oilfield. SURGEs first class will launch in the Spring of 2012. For more information, please visit our website at www.surgeaccelerator.com.

transcript

Houston Seed Accelerator

Houstons Mentor-driven Seed Accelerator

Empowering entrepreneurs solving the worlds energy problems using software

SPRING 2012

Seed Accelerator Overview

Provide Entrepreneurs with Capital, Mentorship & Connections, in Return for EquityStructured 12 week curriculum culminating in Pitch Day to Angels, VCs and Industry ExecsSimilar programs have achieved strong returns in other IT verticalsThere is NO accelerator focused on ENERGY IT vertical

Why SURGE?Growth/Success of US Seed AcceleratorsEXCELERATE LABS CLASS 170 jobs$7.5M in seed money raisedExit returns half of Fund I ($6.5M exit price)

Case Studies: IT Successes Another Y-Combinator Win: WuFoo Exits for $35M, After Raising Only $118,000 Salesforce.com has just announced that it is acquiring Heroku for $212M in cashAOL acquired SocialThing with $550k in fund raising post TechStars $35M$212MLimbo merges with Brightkite and announces $9M funding round$9M

Localytics Raises $2.5M for Mobile Analytics Platform$3M

Dallas TechWildcatters ImageVisionLabs raises $2M from Walden Venture Capital$2M

$10M

The model generates more deal flow, better deal flow, press for new companiesSURGEHoustons For-Profit, Mentor-Driven Seed Accelerator 12-week Bootcamp launching in Spring 20121st & Only Accelerator Focused on ENERGY SoftwareSURGE Accelerator Overview80+ Mentors: Leading VCs, Energy Execs, EntrepreneursRaised over $1M in funding Launched Website and Attracted PR Paying Sponsors including Energy Focused Service ProvidersJoined TechStars Network for global Accelerators best practices

"If Thomas Edison looked at our power system, he would recognize it," he said. "Whereas, Alexander Graham Bell, if he looked at the communication services, he wouldn't recognize it at all. That's how archaic the infrastructure is.

Take advantage of Technology, Policy and Expertise Shift in Traditional Energy

Core PurposeTo be the pre-eminent mentor driven seed accelerator focused solely on enabling entrepreneurs to solve the worlds energy problems using software."If Thomas Edison looked at our power system, he would recognize it," he said. "Whereas, Alexander Graham Bell, if he looked at the communication services, he wouldn't recognize it at all. That's how archaic the infrastructure is."

SMART GRID

IT applications used to increase grid efficiency, measure demand, and reduce waste

Includes Smart Grid, Smart Meter, and EV GridTRADING & RISK MGMT (ETRM)

Capital Markets + IT = Increased visibility and flexible response to supply or demand shocksDIGITAL OILFIELD

Data + IT used to inform exploration and maximize production, safety, and efficiency at the wellheadEfficient Energy Software Technologies

USING INFORMATION MANAGEMENT TO REDUCE ENERGY CONSUMPTION

Massive Phase Changes happening now 3 areas ripe for disruptive innovationSmart Grid SHIFT Old Grid requires immediate change with low cost of technology, security needs, and integrating renewablesDigital Oilfield SHIFT optimize reservoir management using real-time informationTrading & Risk Mgt SHIFT a move away from off-balance sheet financing and real-time information (demand generation)Portfolio StrategyFOCUS: Entrepreneurs developing innovative applications at the intersection of Energy + ITGOAL: Take startups from theory & prototype to pilot, next round of funding and commercializationINVESTMENT:10 teams$30k per team6% common equityUnfair Advantage (Deep technology, Proprietary Distribution and/or Ability to achieve cash flow quickly

We focus on KEY LEADING INDICATORSCAPITAL

CUSTOMERS

World Class EcosystemCOMMUNITY

SERVICE PROVIDERS

ACCOLADES

Home to and more than 5,000 energy related firms, Houston is considered by many as the Energy Capital of the world. Houston hosts many of the worlds largest energy and supporting service companies headquarters.Houston is third among metropolitan statistical areas in the number of Fortune 500 headquarters. And the state of Texas is now tied with California for the most Fortune 500 headquartered companies.

Access to Renewables (COMMERICALIZATION)#1 area for solar power reserves#1 state in wind power generation-producing 26% of the country's wind powerCity of Houston is the largest U.S. municipal purchaser of wind energyLargest biodiesel facility in the U.S.Top Ten Cities for Green Technology InnovationHouston Ranked #1 for Local Government Green Power Purchasers (as reported in the Houston Business Journal - July 15, 2008). The City of Houston is the number one municipal purchaser of green power in the nation, according to the U.S. Environmental Protection Agency, purchasing more than 350 million kWh of green wind power annually.$4.93 billion state plan to create a "renewable energy superhighway" that will nearly quadruple Texas's wind power capacity

ACCESS TO CONNECTIONS#4 in US Hottest Labor Markets (Bizjournals.com October 16, 2009)#1 Highest Level of Entrepreneurial Activity Among Largest Metro Areas (Kauffman Foundation of Entrepreneurship May 2010) Forbes ranked Houston as the "Best City to Get Ahead" in June, 2009 based on high wages relative to low cost of living, low unemployment and the number of Forbes Best Big Companies and Best Small Companies located in the area#1 Largest IT Service Economy (Onforce, Inc. (VoIP Monitor) December 5, 2008)Leadership: Steering CommitteeKirk Coburn Co-founder & Managing DirectorSerial Entrepreneur and Large Corp Exp: PGA TOUR Network, Chief Outsiders, Blair Garrou Board MemberCo-founder DFJ Mercury. Incubator Expert. Entrepreneur. Rice Faculty.Andrew Clark Board MemberFormer Chairman of HAN. HTC EIR. DFJ Mercury Venture Advisor. Compaq Exec.Brett Perlman Smart Grid LeadFormer Public Utilities Commissioner. McKinsey & Co. Smart Grid Expert.

Brian Landrum Board MemberFormer COO Reliant Energy. Compaq GM. McKinsey & Co.

Why HOUSTONThe Energy Capital of the WorldHome to more than 5,000 Energy Companies#1 IT Services EconomyFully Deregulated Utility Market (Gen to Cust)Largest Population of Deployed Smart MetersLargest Purchaser of Green Power in Nation#1 Wind Generation

Keys to Program: Mentors

Week 1Week 2Week 3Week 4Week 5Week 6Week 7Week 8Week 9Week 12SURGE DAYSTAGE 1: ConnectionsSTAGE 2: Product ReadinessSTAGE 3: Pilot LandingTerm Sheet Prep

SURGE: Custom CurriculumCustomer ValidationCustomer DiscoveryCustomer CreationCompany BuildingPivotConnections to Capital, Customers, Entrepreneurs, Expertise, Talent Business Plan and Financial Model DevelopmentProduct Development and Market ValidationMentor Workshops (Marketing, Sales, Ops, IT, Legal, etc.)Connect Lead Mentors to Teams

We are going to connect the Mentors UP FRONT in the selection process. Add Sections including: Software People (been There done that), VCs, Program Next Steps

PILOTINCUBATION & FUNDING

IDEA

Global Entrepreneurs

Texas Universities

Industry

Incubators

Pilots

Funding

40+ VCs from SURGE DAYTimelineDateActivity11/1/11OpenApplications1/20/12Investment Committee narrows down finalists2/01/12SURGE invites top 25 applicants to pitch2/10/12SURGE selects top 10 teams and invites to HOUSTON3/01/12SURGE Class 1 Begins5/23/12SURGE Class 1 Last Class5/24/12SURGEDAY(Pitch Day to 300-400 Angels, VCs, Corp.)Next Steps to SURGE STEP 1: Become a MentorSTEP 2: Identify Other World-Class MentorsSTEP 3: Identify Key Problems to SolveSTEP 4: Participate in SURGE DaySTEP 5: Agree to Pilot/Connect STEP 6: Invest Mentoring at SURGE Giving Back and Building an EcoSystemLead Mentoring vs. Ad Hoc Input Exclusive and World-ClassTiming Commitment: 2-3 hours per week Focus: business model, go to market strategy, branding, pricing, the investor pitch, connecting to customersLong-term: Board, Invest, Connect, Give-BackTypes of MentorsLead Mentor: spend 2-3 hours a week directly with founders during duration of programAd Hoc Mentor: Add value when and where they canExclusive: Best Entrepreneurs, Industry Experts, Venture Capitalists, Angel Investors, and Community Organizations

SURGE DayWhat: Class 1 Presents Plan and Demo When: May 24, 2012Who: 300 400 venture capitalists, angel investors, energy companies and corporate development teams, media, entrepreneursWhere: House of Blues Goal: 50%+ to land follow-on funding (>$500k) and land critical pilots in next 6 mos.

Types of MentorsLead Mentor: spend 2-3 hours a week directly with founders during duration of programAd Hoc Mentor: Add value when and where they canExclusive: Best Entrepreneurs, Industry Experts, Venture Capitalists, Angel Investors, and Community Organizations

BACKUPTarget EntrepreneursLOCATION: Willing to locate in Houston for 3 month bootcampFOUNDERS: Coachable Intelligence, Integrity and EnergyStrong value propositionStrong competitive advantageTarget a large marketCAPITAL: Will bootstrap with seed fundingCOMPANY FOCUS:Information Technology that Improves Energy EfficiencyExisting Prototype/ProductCapital Efficient Leverage Texas EcosystemScale 1-10 on importanceFinancial Support & Initial Funding (5.25)Product Support (7.13)Business Support (7.42)Brand Connections (7.83)Connections to Future Capital (8.51)

THE KEY ATTRIBUTES THAT WE ARE LOOKING FOR IN THE TARGET COMPANIES INCLUDE: (I) FOCUSED ON THE ENERGY INDUSTRY, (II) HAVE A TECHNOLOGY (ENERGY IT, SMART GRID, CLEAN TECH, OTHER), (III) ARE CAPITAL EFFICIENT (IT TAKES LESS THAN $1M IN CAPITAL FOR THE COMPANY TO REACH A NEW LEVEL IN VALUATION), (IV) HAVE AN EXISTING PRODUCT, AND (V) CAN LEVERAGE HOUSTONS CORE STRENGTHS (ENERGY CAPITAL OF THE WORLD, LARGEST IT SERVICES ECONOMY, LARGEST WIND ENERGY MARKET AND LARGEST DEREGULATED EN