GREATER SACRAMENTO ECONOMIC COUNCIL
FROM A VENTURE CAPITALIST ’ S PERSPECTIVE , HOW DO ACCELERATORS IMPACT THE REGIONAL ECONOMY ? As an entrepreneur based in the Sacramento region , I found that every time I had to raise money for my company , I would have to go to the Bay Area , as there were no ( venture capitalists ) in our region at that time . I saw this need for venture capital and felt that Moneta Ventures could serve that need . … Accelerators help grow investable startups in our region . When local startups get investment , they create local jobs , which in turn helps other local businesses . Furthermore , successful local startups create wealth for the local investors who backed them early on , which enables investors to do more local business and give back to their communities .
HOW DOES PARTICIPATING IN AN ACCELERATOR MAKE A NEW BUSINESS MORE ATTRACTIVE TO INVESTORS ? Many of these entrepreneurs have great domain expertise , but might lack experience in the business world or in building a startup . Between the curriculum and the network of mentors and advisors , accelerators help to fill the gap in an entrepreneur ’ s business knowledge . Additionally , many accelerators culminate in a “ demo day ” where every entrepreneur gives a short pitch for their company to a room of investors . Many startups get their initial funding from investors they were introduced to by an accelerator .
LOKESH SIKARIA MANAGING PARTNER , MONETA VENTURES
WHAT DO YOU LOOK FOR WHEN DECIDING TO INVEST ? We invest in management teams with skin in the game and an unwavering commitment to see their business ideas succeed . Typically , these are first-time founders but they either have significant management experience or domain expertise prior to starting their business .
AS THE NONPROFIT SPONSOR BEHIND THE LAB @ AGSTART , A FACILITY THAT OF- FERS SHARED LAB SPACE FOR AG , FOOD AND HEALTH STARTUPS , WHY DO YOU THINK ACCESS TO INCUBATORS IS IMPORTANT IN THE LIFE OF A STARTUP ? The cost of opening up ( a tech-based ) startup has fallen dramatically , but unfortunately in the science area … the barrier to entry is still very frustratingly high . … If you don ’ t have access to an incubator , you have to find commercial space to rent , do all the upgrades , buy the technology — you can round ( the initial investment ) up to $ 100,000 to begin work and that ’ s before you ’ ve done your first experiment . With AgStart , you can start out and do science on Day One . … Having shared resources at an incubator makes dramatic economic sense . … Everyone gets their science moving forward , the equipment gets used and the model pays for itself .
JOHN SELEP PRESIDENT , AGTECH INNOVATION ALLIANCE
HOW DOES AN ACCELERATOR FIT INTO THE PROCESS OF USING AN INCUBATOR ? A lot of clients in incubators are also graduates of accelerators or participating while resident — it ’ s not mutually exclusive . Both focus on startups , both can offer advice and mentorship , but the difference is that accelerators … have a start and an end . In an incubator , a company can join us at any time when they decide they need space and can dwell in our space for as long as they need with no end point . While conducting research and development ( at AgStart ), some of our clients also participate in accelerators to connect them into a network of investors and ( receive ) coaching to refine their investor pitch .
HOW DOES AGSTART BENEFIT THE REGIONAL ECONOMY ? We have 12 startups under agreement … which means 12 new full-time science professional positions have been created because of our incubator . … None of the 12 companies were based in Woodland before the incubator … and they ’ ve raised $ 21 million in private capital since establishing their position in our incubator . … It ’ s a win for everyone — GSEC is actively bringing in companies from outside the region and the country that directly land in the Northern California region and we have a facility for ag , food or health as a wonderful landing spot for them .
28 comstocksmag . com | December 2021