In the penthouse of the historic Palace Theatre, Charles Stack is hoping to foster a few new tech companies -- 10 to be exact -- in Cleveland’s newest business accelerator,
FlashStarts.
Stack started FlashStarts in October 2012 and will hold his inaugural startup class this summer. “Come in with a half-baked idea and we finish baking it, slap some cash for equity, and start it in three months,” he explains.
Teams of two or more can apply to be one of the 10, but Stack is also looking for 10 interns and even potential entrepreneurs who don’t have an idea yet, but want to help build on somebody else’s idea. “Even if you don’t have teammates or an idea, you can apply and we’ll put you with a team and you will get equity with that team,” he says. “There are a lot of smart people out there who may not have a teammate.”
Stack is against the “cookie-cutter approach” to starting new businesses. Instead, he helps each company with their unique needs. “As soon as you apply, if we like the concept we begin the process of launching the company,” he says. Stack immediately gives the teams individual challenges, like researching the patents or market size.
“The key to making that business successful is getting the team familiar with us and us familiar with them,” Stack says. “It’s really not the same for every business. Different opportunities require different tools.”
Stack is raising $1.1 million to invest in the companies. Teams will receive up to a $20,000 investment -- $11,000 plus $3,000 for each team member. FlashStarts in turn gets eight percent equity in the company. Teams can potentially receive up to $200,000 in follow-on funding upon completion of the program.
Stack already has identified six potential candidate teams. He is accepting applications until May 10. Stack also is looking for mentors and advisors. FlashStarts has partnered with
DecisionDesk to facilitate the application process and recently brought in Jennifer Neundorfer as managing partner.
Source: Charles Stack
Writer: Karin Connelly