1. SILICON TALLY
A INCUBATOR
IGNITING DIGITAL TECH ENTREPRENEURSHIP IN TALLAHASSEE
2. SILICON TALLY MISSION
To leverage the untapped potential of Tallahassee's
innovators, tech entrepreneurs, and creative individuals
in order to generate more communal wealth through
the creation of startup companies with high-growth
potential Adam Kaye, Founder
3. WHY DIGITAL TECHNOLOGY
• Preventing brain-drain - young people love it
• Lower startup costs + high-growth potential (than any other
industry)
• Heavily invested sector (US & worldwide)
• Underutilized human capital
• Too reliant on small & lifestyle businesses
4. WHAT IS TECHSTARS?
• is the #1 startup accelerator in the world
Independent study ranking TechStars #1 in the world as a startup accelerator:
Reference
http://www.readwriteweb.com/start/2011/05/techstars-beats-y-combinator-r.php Article
GOAL: AFFILIATE SILICON TALLY
INTO THE TECHSTARS NETWORK
Economic development, job creation, transform
Tally into a tech hub while generating good ROI
• TechStars Network consists of independently owned and operated regional
organizations that operate a start-up accelerator program with a model similar to TechStars. The
TechStars Network provides professional development, networking opportunities, deal flow, and
ongoing support for members.
6. RESULTS OF TECHSTARS COMPANIES
Active Acquired Failed
Time Period Summer ’07 - ’11
# of Companies 104 12%
Money Invested $1.75M 12%
Money Raised $84, 660,305
76%
F/T Jobs Created 576
7. ST INCUBATOR PLAN
• Run two 12-week Techstars semesters annually
• Raise micro-fund to make seed investment into 8 companies
• Take equity stake in incubated companies
8. EXAMPLE TECHSTARS SEMESTER
(12 WEEKS LONG)
• 8 companies per semester chosen by investor board
• $18K seed investment per company
• Legal & accounting setup for each company (Preparation for outside investment)
• Access to local & national mentors
• Host investor demo days in NYC, SV and South Florida (where the big $$$ are)
**Access to tons of investors and venues through the Techstars Network!**
9. THE INCUBATOR MICRO FUND
• Raising $200K for the first semester - 10 units @ $20k per unit
• $144k direct investment ($18k x 8 companies)
• $20K travel expense,
• $20K operating overhead,
• $16K salaries (managing director & assistant)
10. INVESTMENT OPPORTUNITY
• Portfolio gets 10% - 15% founder’s stock in each company
• Portfolio split 50/50 between LPs (investors) & MPs (managers)
• Investing in Portfolio = Risk Mitigation
• Investors get first opportunity to participate in follow-on rounds
11. $20K INVESTMENT GETS YOU 5% OF THE
PORTFOLIO
• Assume XYZ company gives away 10% of
Founders Stock for $18k (a $180,000
valuation)
• If only 2 of the 8 companies of the
portfolio receive “normal” seed rounds at
$2.5M valuation then you “break even”
from a valuation stand point.
• With the M&A market now, it’s not
difficult to assume 1 or 2 companies will
be acquired for $5M - $20M.
• But if it becomes the next Facebook... the Source:
sky is the limit. http://techcrunch.com/2011/06/05/why-startups-should-raise-
money-at-the-top-end-of-normal/
12. MENTORS ON BOARD
• Catherine Kunst, Director of Innovation Park • Matt Miley, CEO of PayOut USA
• Lester Hutt, CEO of BevShots • John McFarlin, President of TalSearch
• Jim Hunt, VP of Moore Consulting • Michael Calienes, Transplant-1
• James Tillman, COO of Canopy Software • Troy Thrasher, VP Applebees
• Ron Frazier, Entrepreneur-In-Residence of FSU’s • Bill Lickson, Media Consultant of Seminole
Business College Boosters
• Steve Roden, CEO of LearnSomething.com • Richard Benham P.A.
• Ryan Cohn, CEO of What’s Next Marketing • David Lipten, Grant Works
• Melissa Raulston, Wellspring Studio School • Johanna Money, Williams Group
• Robin Johnston, VP of TCC Foundation • Jonathan Adams, President of Distance Learning
Institute
• Christy Crump, CEO of Crump Consulting
• John Marks IV P.A.
• Christopher Campbell, Dept. of Management
Services
13. LEGAL COUNSEL
BRENT C.J. BRITTON
GRAY | ROBINSON
ATTORNEYS AT LAW
201 North Franklin Street, Suite 2200
P.O. Box 3324 (33601-3324)
Tampa, Florida 33602
http://gazellelab.com/
Tampa Bay, FL
