A Shaker Heights accelerator has raised $250,000 in pre-seed funds that it will make available this year to 15 startups focused on software and "disruptive technologies."
Shaker LaunchHouse, formed as Goldstein Caldwell & Associates in 2008 to help technology entrepreneurs at the earliest stages move quickly from concept to first client, has made funds available to 12 companies to date, says Todd Goldstein, managing partner. Previous investments were raised by Goldstein and his partners; the most current funds were invested by a variety of private angels, he says.
The accelerator, which takes an equity stake in companies it assists, provides mentors, collaborative office space, educational programs and connections with investors during a process designed to validate an idea in 90 days and land a first client within 180. Investments typically range between $5,000 and $20,000 and average about $10,000, Goldstein says.
"We really formed because my partner (Dar Caldwell) and I, in our 20s, were starting our own business and felt there really were not good resources for entrepreneurs at the earliest stage to help them go from idea to validation, and to provide a community around them," Goldstein says.
While there is no requirement that portfolio companies remain in state, the long-term goal is to strengthen the entrepreneurial environment in Ohio, Goldstein says.
On April 7, LaunchHouse announced an investment in BestHomeHealthCare.com, a provider of web-based services to the extended care and home care industries. Previous portfolio companies include Sunflower Solutions, a Cleveland -based company that now provides low-tech solar power solutions in five developing countries.
Goldstein says his firm changed its name in late 2010 when it formed a partnership with Shaker Heights. Next month LaunchHouse will move into a building renovated by the city. Under a five-year lease agreement, the accelerator will have use of the 23,000-square foot facility rent- and tax-free for the first four years. In return, the city's community investment corporation will take equity in LaunchHouse.
Non-portfolio companies can pay a membership fee to take advantage of LaunchHouse office space, events and educational programs.
Source: Todd Goldstein, Shaker LaunchHouse
Writer: Gene Monteith