Network Partner

Overview

“Our member portfolio companies are finding that the BizSpark program allows them to stretch their development dollars further and do more with less. In fact, we think the MSDN resources and other software tools that come with that are great.”

— TAL BEHAR, EXECUTIVE DIRECTOR, SILICOM VENTURES

Silicom Ventures is where real high-tech, smart money, and entrepreneurs meet. This Microsoft Network Partner is one of the largest angel and venture capital investment forums in the United States, linking experienced investors with entrepreneurs from around the globe. Based in California’s Silicon Valley, this firm’s influence spans North America, Europe, and Asia. It has investments in life sciences and medical technology, semiconductors, software, and media.

Q: What makes you different—what is your key differentiation?

A: “Clearly, we have the Israeli connection, and deal flow coming from there. We also have the connections and the experience that our members bring. We help early stage companies who are struggling by providing experience, money, and guidance. It's not like you just write a check and that's it. It's a continuous process. Preferably, the companies are local so we can really be hands on, and work with them.”

Q: How did you first hear about the BizSpark program?

A: “We heard Microsoft CEO Steve Ballmer talk about the program back in May when he gave a speech at Stanford University. He talked about the opportunities in this difficult economy, and how Microsoft was helping Startups. That triggered us to look further into the program, and sign up.”

Q: What kinds of things are you hearing about the benefits of the program?

A: “We hear from our Startups that it's an excellent program, especially in this environment where funding is tight. Our member portfolio companies are finding that the BizSpark program allows them to stretch their development dollars further and do more with less. In fact, we think the MSDN resources and the other software tools that come with that are great. Since we joined the BizSpark program in June, we have already signed up more than 70 Startup companies.”

Q: Are there any Startups that we could highlight that really point to the success of your venture business?

A: “There are a number of them, but I would just focus on one—Yoggie. They received two rounds of investment from our members, and were established in 2005 by Shlomo Touboul, the inventor of behavior-based blocking technology. Touboul started Aladdin, which is a very successful Israeli company. With Yoggie, he developed the world's first hardware-based, personalized security computer solution. Yoggie develops and markets a USB key that you put into your laptop and it blocks Internet threats. They're already selling their product in stores, and making great progress.”

Q: Given the current economic climate, do you have any advice to give to Startups?

A: “Due to the tough economic situation and the scarcity of funding, entrepreneurs need to be more resourceful and creative in running their companies and raising funding. VCs are busy supporting their existing portfolio companies and are unwilling to fund new companies, especially if there is no indication of customer traction. Companies should make as much progress on their own and postpone approaching the VCs until a later stage. This means doing more with less, using outsourcing and paying with equity. Many Startup companies these days operate as virtual companies—outsourcing work to overseas contractors via the Internet. And this requires that projects be very well defined and specified, so an independent contractor can work on it and deliver what was required without going through many feedback cycles. Regarding the funding, companies need to be more flexible, and willing to accept lower valuations, and consider bridge loans and multi-tranche investments where each stage is contingent on milestones. Companies should also look for strategic partners who may be willing to fund some of the development, and should recruit board members and advisors who have clout and connections in the financial community and who can help in fund raising.”

Q: On a scale of 1 to 10, with 10 being the highest, how would you rate the program?

A: “I would give it a nine. It is a great program at the right time when the economy is challenging. Microsoft made it really easy for entrepreneurs to sign up and use the tools at no cost.”

For more information, contact Tal Behar at talb@silicomventures.com.

Click here to download and print Silicom Ventures story

Overview

“Everything on the PartnerUp community is focused around accomplishing business objectives. Our mission: connect innovators with the people, advice, and resources they need to build and grow their businesses.“

— STEVE NIELSEN, CEO, PARTNERUP

Q: What makes you different and what is your mission?

A: “PartnerUp is the first and largest network that's focused exclusively on small businesses and Startups. That’s our core point of differentiation. We help people achieve their business networking objectives and their business objectives at the same time. This really differentiates us from sites where you can primarily only network with people for social purposes.

“In fact, we don't just provide a community where people can mingle. Our mission: connect innovators with the people, advice and resources they need to build and grow their businesses.”

Q: How does interaction take place on the site?

A: “You can interact with other members via any functionality on the site simply by clicking on our top navigation bars — people, opportunities, businesses, properties, answers, and forums. Any one of those will connect you with other people. We built this site around the concept of function-wrapped interaction. As an example, if you're looking for a person for your business, you can network with people—and network around that specific topic. If you're looking for opportunities to get involved in a Startup or in a small business, you can network with people, but you network through the opportunity section—focused on finding opportunities, posting opportunities, or managing opportunities. All of these tools help you accomplish a business goal and meet people at the same time. While we may skew toward the technology-savvy side of early adopters, we are really targeted at all small businesses and Startups and our audience is fairly evenly spread across all industries and geographic locations.”

Q: How did you first hear about the BizSpark program, and what is your process for recruitment?

A:  “We heard about the BizSpark program through Jacob Mullins. We had some early discussions with you guys about how we could promote the BizSpark program on PartnerUp. In fact, we have the Microsoft BizSpark logo very prominently displayed on our home page, and have signed up more than 65 Startups. Our recruitment process really focuses on promoting the BizSpark program on the PartnerUp site, as well as having Microsoft people engage directly with our audience. Jacob has written a few articles for the e-mail newsletter and for our blog that talk about how Microsoft engages in the Startup ecosystem and how Microsoft can help Startups and really partner with them. We think this kind of information is really compelling to Startups. From our newsletters, to our blogs, to our member communications, we’re actively recruiting Startups into the program.”

Q: What is most compelling about the program?

A: “I think the software piece is certainly what grabs people's attention. I also think the perception of a partnership with Microsoft is a strong draw—there’s this feeling of camaraderie that seems to capture the attention of the Startups we’ve talked with.”

Q: On a scale of 1 to 10, with 10 being the highest, how would you rate the program?

A: “ I would give it a solid nine.”

Overview

“Everybody I know who has been plugged into the BizSpark program really likes it. This program has raised the visibility of Microsoft in the early stage Startup space. It’s phenomenal that Microsoft already has something like 20,000 Startups in the program from around the world.”

—  CHAD LYNCH, DIRECTOR OF CORPORATE BUSINESS DEVELOPMENT, ORRICK EMERGING COMPANIES GROUP

Q: How does Orrick’s Emerging Companies Group work with Startups?

A: “Orrick has a great combination of both a dedicated Emerging Companies Group that works with Startups and a global platform of more than 1,100 lawyers worldwide to help those companies as they grow. We focus on helping our clients as both a business partner and a legal advisor. A big part of this is helping them build the relationships that they need to succeed, whether that means providing introductions to venture capitalists, potential business development partners, investment banks, et al. The TOTAL ACCESS program really arose from this philosophy.

“Through Orrick's Emerging Companies Group, we have attorneys who moderate panel discussions aimed at Startups. Our goal is to extract good data from each one of the non-lawyer panelists. Our tagline is ‘today’s tools for tomorrow’s success’ — and our overall program is called TOTAL ACCESS. With Orrick's Emerging Companies Group, our focus is exclusively on emerging companies, mostly in the technology industries. We do this in China, England, France, and many other countries. While we have more than 100 lawyers in Silicon Valley, and other places in the U.S., it is also an international platform with strong presence in Asia as well as Europe — regions we see as growing markets. Our program dovetails very nicely with what Microsoft BizSpark is all about.”

Q: What can you tell us about TOTAL ACCESS?

A: “Orrick provides great value to the entrepreneur and investment community with our TOTAL ACCESS programs – nine of which are listed in the MicrosoftStartupZone.com/USA site in the resources section. When we first started Orrick's TOTAL ACCESS more than two years ago, we had roughly 80 attendees per event. Through word of mouth and recommendations, TOTAL ACCESS has grown close to 200 attendees per major panel event – even with our 7:15 a.m. start time – and we are still growing!

“Other law firms have tried to develop programs to accomplish what we do, but oftentimes their approach involves featuring their own lawyers exclusively. While we know how important a legal education is for Startups and how deeply experienced Orrick lawyers are, the legal perspective is always just one part of the multitude of perspectives we like to bring to our TOTAL ACCESS Event Series – a unique and complimentary set of breakfast panels and lunch teaching sessions aimed at providing entrepreneurs business, tactical, and legal education to help them during their entrepreneurial journey.

“Orrick's TOTAL ACCESS breakfast panels feature a broad range of topics – ‘Financing Alternatives,’ ‘Raising Money for Green Technology,’ ‘Cloud Computing,’ ‘China as an Innovation Partner,’ and ‘M&A and IPO Market Update.’ Speakers on our panels have included experienced VCs, bankers, industry executives, and Startup entrepreneurs. and angel investors. Our smaller, more focused lunch teaching sessions feature Orrick lawyers educating 10 to 15 CEOs and company executives each session on legal issues ranging from ‘Term Sheet Review’ and ‘Intellectual Property 101’ to ‘Technology Transactions’ and ‘Executive Compensation.’ One of our popular programs, ‘The Fundraising Series,’ involves experienced industry executives and venture capitalists teaching entrepreneurs how to prepare business plans, evaluate the market landscape, and build effective value propositions. We have helped many entrepreneurs gain better understanding of how to improve their stories and pitch more effectively to potential business partners, customers, and investors.

“You can learn more about Orrick's TOTAL ACCESS Event Series, join our mailing list, and register for upcoming events at our Web site http://www.orrick.com/totalaccess.”

Q: When did you first hear about BizSpark, and how were you recruited into the BizSpark program?

A:  “Microsoft made a great hire with Jacob Mullins, a former entrepreneur. He was an Orrick client before he joined Microsoft. Jacob, who is a Startup Development Manager for the BizSpark program, knew that Orrick’s focus and dedication to Startups truly complemented the BizSpark approach. I think BizSpark's program is awesome, particularly for early-stage entrepreneurs. And timing couldn't have been better. When Microsoft BizSpark launched a year ago, the market was going upside down, and Microsoft BizSpark's offer of otherwise costly software and resources has probably helped many Startups stay on their feet and continue on the journey to their potential success, even in the current challenging economic environment.”

Q: What do your clients think about the BizSpark program?

A: “Everybody I know who has been plugged into the BizSpark program really likes it. This program has raised the visibility of Microsoft in the early-stage Startup space. It’s phenomenal that Microsoft already has something like 20,000 Startups in the program from around the world.”

Q: What key takeaway messages do you think are important to communicate to Startups?

A: “From a law firm perspective, early-stage entrepreneurs need to understand that any law firm they hire should do more than their core competency, which is practice law. They need to educate entrepreneurs, and make introductions to service providers, and investors, and to programs like BizSpark. The legal requirements for early-stage companies for the most part are pretty basic. What makes a law firm valuable to entrepreneurs is what they do outside of that. Anyone who has ever been in the entrepreneurial world knows that you use everybody for everything. That's just the way it works. If your law firm doesn’t provide more, then it’s probably not a good fit and you’re most likely missing an opportunity to have some value added through your relationship with a law firm.

“From a business perspective, and assuming you have a great idea, companies fail because they don’t learn how to execute the business. Often, entrepreneurs can’t tell you why they should exist, why anybody cares, or the sort of problem they’re solving. Startups need to have a one-minute elevator pitch that explains who they are, the market they are in, and why they will win.”

For more information, contact Chad Lynch at clynch@orrick.com or call 650-614-7354.

Click here to download and print Orrick story

Overview

“BizSpark provides access to software and services that just wouldn’t be available to them [Startups]. It opens doors, and is enabling them to start up businesses that they wouldn't do otherwise. BizSpark is absolutely fantastic from that point of view.”

—  PHIL WINSTANLEY, FOUNDER, PIXEL PROGRAMMING

Q: How are you structured? Do you have a staff of developers that you work with?

A:  “Yes, we work with contractors. We don't employ any staff because of the way that our work comes in, it's very fluid. We have two directors within the business who manage the projects and the operations side of things, as well as monkeying with the code every now and again. We’re really all developers at heart. We have a crew of about 15 different contractors that we work with on different projects depending on the skill set required. We only use the best industry-leading people for what we're doing—whether technology- or market-focused. Our business is primarily in the U.K., although we have clients all over the world from Australia to Iceland.”

Q: Tell us about how you first heard about the Microsoft BizSpark program and what your involvement has been so far?

A: “I first heard about BizSpark about a year ago. Over time, as I’ve worked more with the community, and especially during the last year and the economic downturn, it became increasingly clear that people starting up businesses really needed help. And one of the barriers, especially in software development, has been licensing costs, and the fear of getting trapped in a big financial hole. Once I heard more about BizSpark through Bindi Karia, the UK VC/Emerging Business Lead at Microsoft, it really piqued my interest. Because of all the work that we do in the U.K—we have huge conferences with hundreds of developers—we have exposure to a prime audience of potential Startups for BizSpark. Within this audience of Startup businesses, everyone's got a business idea. These software developers just don’t necessarily have the time or the inclination to go about doing it. BizSpark offers a big carrot, as opposed to a stick, to help them. In fact, initially, we signed up as a Startup because one of the businesses that we run was building products for software developers. That got us into BizSpark. Then a week later, I was speaking to Bindi about getting started as a Network Partner.”

Q: Tell us a little about the Startups you work with?

A:  “I’d say the majority of the Startups that we work with are individual developers who are looking to start a company, or they've got a product idea. They're looking for advice about how to go about doing things, and not just on the software side of the business. They have questions such as how to form a business, the legal structures that are in place for them, etc. In the U.K., starting a new business is quite complicated. After we answer these questions, the Startup tells us what they want to build, and how they plan to build it. We’ve formed a really good relationship with our Startups, where we've just given advice and chatted with them. For us, it's great because we're building up a network of different Startups, and for Startups, we're helping them make important connections.”

Q: What do you think is the biggest benefit of being a BizSpark Network Partner?

A: “For me, it’s exposure to the Startups. It's learning about the products and the different people that are out there. It's very inspiring listening to the ideas that people have, and finding out more about what they're doing. There's such passion in the software development world, which is normally a very dry world.”

Q: What do your Startup companies think about the program and what is most valuable to them about BizSpark?

A: “I think the first thing that people say when they hear about BizSpark is—what's the catch? They don't believe that Microsoft can be this generous. But, times are changing. And the Startups that I work with are software developers. For them, BizSpark provides access to software and services that just wouldn’t be available to them. It opens doors, and is enabling them to start up businesses that they wouldn't do otherwise. So BizSpark is absolutely fantastic from that point of view.”

Q: Tell us how you have been successfully signing up Startups?

A: "Because of the position I've got in the U.K. within the development community, I can stand up in a room full of developers and tell them what BizSpark is all about in real terms. As soon as they realize that they can start to create those products that they've had in the back of their minds for a while, it's a no-brainer. It's an absolute winner. They just jump on board. I think we’ve added nearly 100 Startups to the program.

“Because we’ve done so well in signing up Startups in the U.K., we sit at the top of the directory on the BizSpark site. We get quite a few people coming through the directory and picking us from the list to be their Network Partner, because they've heard about us from friends and colleagues and they know that we offer much more than just the sponsorship into BizSpark. We're happy to chat with them about their business ideas, and connect them to other people within the U.K. that we think are relevant.”

Q: What is the one key takeaway that you would like to convey to other Network Partners and Startups?

A: “We’re focusing our product line around quality and high standards in software development. Our first product called Exceptioneer is a new offering for .NET developers, and a good example of our quality standard. I think that quality ethos gets at the heart of our business. We’re not the people to come to if you just want something done quickly on the cheap. We work hard to deliver high quality, well-maintained, good software. And we know that our customers, especially where money is scarce, want to focus their financial resources on the right things. We think we offer a really good return on investment for our customers.”

For more information, contact Phil Winstanley at phil@pixelprogramming.com or call +44 7753 747 991.

Click here to download and print Pixel story

Overview

“At the Tech Ranch Austin Campfire meetings, we mention all the resources we have available for entrepreneurs. And one of the resources we feature is the BizSpark program and the fact that entrepreneurs can easily take advantage of these applications and tools from Microsoft through this program.”

—  KEVIN KOYM, FOUNDING PARTNER, TECH RANCH AUSTIN

Q: When did you first hear about the Microsoft® BizSpark™ program, and how were you recruited into it?

A: “Somebody at Microsoft contacted us, I believe it was Christian Thilmany who had heard about what we were doing. Tech Ranch Austin was getting a lot of buzz. Our mission is to accelerate technology entrepreneurs. So the recruitment process was easy because one of the things we do is go out and find resources for Startup entrepreneurs, technology entrepreneurs specifically. Our mission and that of the BizSpark program matched perfectly.”

Q: What do your portfolio companies or your customers think about the program and how is it helpful to them?

A: “They think it's great. We do have a number of companies in our portfolio who have leveraged the BizSpark program. There are three sets of entrepreneurs who have been involved with us. One set we call our portfolio companies, we have 12 companies in this group.

“The second and third are kind of the same. We have a program that we call Employed Entrepreneur (EE) Program; it's a structured program for helping entrepreneurs over an eight week-period make the transition to driving their own company. Instead of teaching about business, we help them launch a venture during that timeframe.”

Q: Is there a particularly interesting or successful Startup that you’re currently working with that you’d like to highlight?

A:  “Yes, in fact, we’re intimately involved with Piryx — a company that is empowering democracy. In fact, they are making it easier for someone who is not a career politician to enter politics and make a difference. They are also dedicated to the Microsoft stack — and were one of our early-stage BizSpark sign-ups. They have had an impact on more than 100 campaigns so far. And then BG Alert is a much earlier stage company — it is a proactive diabetes management solutions provider, all based on the Microsoft stack. Mike Gromer, the founder and CEO, reached out to us for help. As the parent of a Type 1 diabetic, he knew the day-to-day challenges of caring for a child with this devastating disease. He’s building a whole company around his passion. Providing resources to a guy like this that is determined to make the world a better place, as well as build a business, is actually really great.”

Q: What are some of the things you have been doing successfully for Startups?

A: “We think of the Tech Ranch as a community center so we support a number of events. Recently, we held the Smart Phone Dev Camp here at the ranch. We’ll have events like that, where it’s not even a Tech Ranch event, we just make the space available to them. We’ve had a number of conferences here—the doors are always open to entrepreneurs. Another example, every two weeks we have what we call a Tech Ranch Campfire meeting. At the Tech Ranch Austin Campfire meetings, we mention all the resources we have available for entrepreneurs including the BizSpark program where entrepreneurs can easily take advantage of Microsoft’s applications and tools. The Microsoft program is one of the primary resources on our list; it usually drives the most interest too.

“We also have a partnership with Door64—an online high-tech employment site for Austin and the Central Texas area. We’ll be posting blogs that will help entrepreneurs identify and launch Startup ideas. Door 64 is just another window into the Tech Ranch — and part of our community outreach program. We’re working with Matt Genovese, the main guy behind Door 64, on this. How does this all tie into BizSpark? We believe that we’ll attract even more Startups and entrepreneurs by building out this community. These potential entrepreneurs will be oriented by someone at the Tech Ranch either on the Web site or at one of our orientation campfire events. And then based on that, a number of them will plan to build their next application on top of the Microsoft stack. A lot of these people who have lost their jobs, want to use the Microsoft stack again because of their familiarity with this platform.

“We engage at the very earliest stages in a conversation with an entrepreneur. We want to encourage these conversations way earlier than any other incubator or accelerator. And once we attract them into the Tech Ranch orbit, we get a high percentage of those entrepreneurs into the BizSpark program. Again, they are familiar with the Microsoft stack, and they are very interested in using it again.“

Q: On a scale of 1 to 10, with 10 being the highest, how would you rate the program?

A: “I’m really ecstatic about the fact that I have access to this program. It’s great.”

For more information, contact Kevin Koym or call 512-339-3242.

Click here to download and print Tech Ranch Austin story

Overview

“With the Ikoula Seed program, we also offer a 20 percent discount for all Startups. And our requirements to join the program are exactly the same as the ones to join the BizSpark program. So, every company that is in the BizSpark program will be automatically invited to join our Seed program.”

—  ARNAUD TAYAC, IKOULA SALES & MARKETING DIRECTOR

Q: What countries do you operate in?

A: “Mainly in France — with a few other French speaking countries, but 85 percent of our customers are in France.“

Q: When did you first hear about the Microsoft BizSpark™ program, and how were you recruited into it?

A: “At the beginning of this year, in January, a prospective customer talked to us about this program. We had not heard about it before then, but wanted to offer the free licensing to potential customers. I then asked about it at Microsoft Tech Days in February. I basically talked to everyone I knew in Microsoft to find out who to talk to about joining. I think we got recruited into the program immediately, pretty much as soon as it was open.“

Q: What do your portfolio companies or your customers think about the program and how is it helpful to them?

A: “The ones who are eligible are really interested, especially in the free licenses. We created a new Startup program that we call ‘The Seed’ to offer a more focused campaign for Startups, and to help better understand their needs, and how we can help them — whether it is through the BizSpark program or another program. For example, we're also a member of Sun Startup Essentials, so we can focus on programs in that offering as well. We want to help Startups to cut their costs so they can invest more in developing their business. While we’ve only had a few join the program so far, we just launched an email campaign last month, and we are already getting good feedback. But I think the program will work more effectively on new customers than on existing ones just because it is easier to change your platform in the early stage of your development or when you migrate to a new hoster. Startups get together in circles to talk about financing or how to run a business and in ‘incubators’. So, we are inviting Startups in our Affiliation program to have them spread the word about SEED and BizSpark in these circles.”

Q: Is there a particularly interesting or successful Startup that you’re currently working with that you’d like to highlight?

A: “Limonetik is one example. This company’s solution allows web merchants to add new means of payment very quickly without any development. The technology is a real business accelerator. We provide them a cost-effective scalable solution. We built a dedicated infrastructure, required to be compliant with their security policy, with a virtualization layer based on Hyper-V and System Center. We add a load balancing service and SQL Server 2008 Mirroring (HA mode) for high availability.”

Q: Are you offering any special incentives for Startups?

A: “With the Ikoula Seed program, we also offer a 20 percent discount for all Startups. And our requirements to join the program are exactly the same as the ones to join the BizSpark program. So, every company that is in the BizSpark program will be automatically invited to our Seed program. The first step is to have them join, and then have them using the technology.”

Q: We’ll be sending this interview to 25,000 developers and entrepreneurs around the world. Is there any special message that you would like to mention, or do have any advice for entrepreneurs?

A: “First, from a technology point of view, Windows Server® is — despite the fact that Microsoft is usually said to be less open than the Linux— a very open platform thanks to its interoperability capabilities. You can have anything running on it, PHP, SQL, MySQL, or whatever. I think it's a very good platform for Startups to build their business around, especially when they don't exactly know what their technical requirements will be at the end of their development. So, that's one thing. Second, it’s the best time to start a new project in the Web services area. There are many opportunities in this crisis and SaaS is one of them. Opex vs Capex, pay per use… The guy who signs the check wants you to be his provider. Finally, I would say, focus on your strengths, focus on being the best, and on being the reference in your area. If you target too many markets and too many services too soon, you will probably end up with a blurred image and being average.”

Q: On a scale of 1 to 10,with 10 being the highest, how would you rate the platform?

A: “I would say it is an eight.”

Q: On a scale of 1 to 10, with 10 being the highest, how would you rate the program?

A: “The program is good. It’s easy to understand what the requirements and advantages are, and it’s easy to get into it.”

For more information, contact atayac@ikoula.com or call +33 1 71 14 00 00

Click here to download and print Ikoula story

Overview

“We believe the TheFunded is considered one of the most powerful brands in startup entrepreneurship because we selflessly back the interest of the entrepreneur.”

— ADEO RESSI, FOUNDING MEMBER, THEFUNDED.COM

Q. How did you first hear about the Microsoft® BizSpark™ program?

A: “When Jacob Mullins left VentureBeat to go work for Microsoft, that's when I first learned about BizSpark. Once Jacob explained what BizSpark does, we realized there was a huge amount of synergy between TheFunded.com and the BizSpark program. All of our nearly 12,000 CEO members are qualified for the BizSpark program under the current BizSpark terms.”

Q. Tell us more about how it works. Do the investors themselves also chime in on the discussions? And is this a revenue-generating site or a non-profit, in other words, what’s your business model?

A: “No, the investors are not part of it - they are able to set up a Certified Profile to describe their fund and keep their information up to date, but only founders and CEOs are able to participate in the discussion. We keep the lights on through advertising and charging service providers for access, but our primary objective is to help CEOs build better businesses. And managing investor dynamics is critical for Startups. In this regard, TheFunded helps CEOs understand and maximize a positive working relationship with their investors.”

Q. Is it primarily focused on technology Startups?

A: “Yes, primarily technology. We get CEOs of fast growth, high-tech companies worldwide that are anywhere from a few months to a couple years old — 87 percent of the companies on the site are funded. It’s a pretty prestigious audience.”

Q. How many Startups have you signed up for the BizSpark program so far?

A: “We’ve signed up more than 188 Startups so far, and I have another 50 to 100 ready to be approved.”

Q. What type of feedback are you hearing about the BizSpark program?

A: ”We’ve received a lot of positive feedback - especially from TheFunded’s new start-up incubator, The Founder Institute. This organization runs a four-month program that trains new and seasoned founders on the current best practices for building the next generation of companies. The program facilitates weekly sessions where experienced entrepreneurs help other Founders develop and launch their new businesses. It offers a founder-friendly startup environment, mentorship from renowned CEOs, fundraising opportunities at fair market value, and shared equity upside among all participants in the companies formed. I know there are an additional 20 to 30 of those companies who are going to sign up for the BizSpark program. We're working to scale that to launch 1,000 companies per year worldwide — expanding into other areas of the U.S., France, Singapore, and India.

“In particular, Microsoft has been very supportive of the people in the program - it feels like there's a person at the other end of the line. And second, the access to the software has been very helpful to people who are building applications in the .NET Framework. The BizSpark offering encouraged one of our Startups building a large application in .NET to make a final decision to go ahead with SQL Server. It’s a win-win situation for everyone involved. These young companies get software at a critical time in their development, and that forges a long-term relationship with the Microsoft platform.”

Q. How do you promote the program and how else can we help with this?

A: “We’ve done a couple of different things. We have links to BizSpark throughout TheFunded.com site and on The Founder Institute site. And from those links, we’re generating a lot of click-throughs from CEOs. Keep in mind that all 12,000 CEOs of TheFunded are eligible for your program. In addition, Jacob has been sponsoring our e-mails to all 12,000 members. He did that twice. I think that was one of the most effective ways for us to market the BizSpark program. We believe the TheFunded is considered one of the most powerful brands in Startup entrepreneurship because we selflessly back the interest of the entrepreneur.”

Q. So, how else can we help you help Startups?

A: “TheFunded is doing great - we think it’s because, in these difficult times, people need answers, and their peers are able to best provide these answers. I think the best opportunity is for Microsoft to help us with the Founder Institute. So the Founder Institute (www.FounderInstitute.com) is a new program, and its goal is to help people who are thinking about becoming an entrepreneur get all the tools necessary to build a world-class business. The Institute is all about CEOs helping CEOs, or experienced entrepreneurs helping founders. So we're always looking for great mentors. I think that's an opportunity for your readership. We’re also targeting cities around the world where we believe the Institute can have a major impact. We're looking at Fort Lauderdale, San Diego, and Seattle, as an example. We're willing to look at places that might be ignored by the entrepreneurial elite, if you will, and want to pump more high-tech lifeblood into those markets. Internationally, we’re looking at London, Paris, Berlin, Singapore, and several cities in India such as Mumbai or Hyderabad.

“We're actually in conversations with people in Australia and China right now. We want to find someone to lead each market, and then syndicate or franchise the model. To provide a quick overview about how the Institute works, every founder in a semester contributes a piece of his or her company to the Institute. The Institute gives the value from that holding back to three groups: Number one, the founders in the program themselves; number two, the mentors who are helping the founders; and three, the person operating the regional affiliate. Everyone in the program gives equity in their companies to the Institute. And then the Institute manages that portfolio, generates a return, and gives the money back to those three groups. It’s a new-model incubator where the priorities of all the participants are aligned.”

Q. That’s very cool. So how would you rate the BizSpark program on a scale of from one to 10, with 10 being the highest?

A: “I would say a 9. But I have to say, I think you've done an amazing job. The Xbox 360 and BizSpark are two shining examples where no criticism can be levied at Microsoft, at all. In fact, only compliments, it's a pretty tremendous program.”

For more information, contact Adeo Ressi: foundingmember@thefunded.com

Click here to download and print TheFunded.com story
 

Overview

Q. What’s your criterion for Startups that join your program?

A: “We have four criteria. The first is that they're headquartered or have their main business operations in the Gulf Coast Area, which is the 10-county region surrounding Houston, Texas. The second is that they have to be dealing with, either in sales or development, one of our five main industry sectors, including energy, and under energy there's alternative energy, and clean tech; life science which includes therapeutics, drugs, and medical devices; IT, which is my group, enterprise software, hardware, and Web-based businesses, which is why this fits in so beautifully. We didn't have Web-based business as a sector until I got here. And two other sectors are NASA Space Transfer, mostly coming out of our Johnson Space Center here in Houston. And the fifth industry sector, and I like to always call it the smallest, is nanotechnology. This comes out of the Smalley Institute of Rice University. Dr. Smalley won the Nobel Prize in 1996 for research into what are now known as Buckyballs. We've helped commercialize a lot of the technology and research that they've created.

“The third criterion is you have to be attractive to growth capital investors. Lifestyle businesses, or services are not something we normally assist on more than a tactical level. Further, we’re really focused on technology development, not a technology deployment. And fourth, the principals themselves have to be coachable and willing to build a team around their deal. So, that's the subjective one.”

Q. Is there an application process?

A:“Yes. There's an online application process. There is a meeting process. You meet with the individual sector heads. In our case they're called development managers, DMs, and we meet with that company to determine if they meet the criteria, and if they could benefit from our help. Then we go through a process of making them presentation worthy, and helping them make a presentation that looks a lot like a VC pitch in front of a handpicked group of VIP investors, advisors, entrepreneurs, business development heads and CEOs of local companies that amount to an advisory board.”

Q. Do you take any equity?

A:“No. Although, the only reason we do not take equity is because of our nonprofit status. But we do, however, accept donations of equity — that just started right when I got here as well, two years ago. So, the amount of equity we normally ask for, as a donation is roughly what you would give to an individual advisor, anywhere from 1/2 percent to 1 percent at the current value of the company. We take that in once at the beginning of our relationship. In this scenario, we walk with the client from the beginning to the end, and we only make money if they make money.”