Seattle has has a heck of a tech scene, but isn’t so big that the community breaks down into cliques and haters as Silicon Valley often does in the boom times. Maybe that’s why I spend so much time up here.
Like other tech hubs, successful Seattle entrepreneurs tend to become angel investors and help the next crop of companies come of age. An example: Pressplane, which recently announced a long list of Seattle angels.
Now those angels are getting a little more organized by investing in the relatively new early stage fund Founder’s Co-op. The fund was first launched last March by (now-deadpooled) Judy’s Book founders Andy Sack and Chris DeVore, and focuses on early stage investments. They typically invest $100,000 - $300,000 in an angel round. To date they’ve made three investments for a total of about $700,000.
Now Founder’s Co-Op has expanded, raising another $1.8 million from a number of well known Seattle entrepreneurs: Ben Elowitz (Wetpaint, Blue Nile), Alex Algard (WhitePages.com, CarDomain), Adam Brotman (Play Network), Andy Liu (BuddyTV) and others.
The group not only brings cash to a deal, they also bring the partner’s extended Seattle network. Sack says the fund will announce three more investments in the coming weeks. And I expect things will heat up even more, as this becomes one of the first stops for any company raising money in the Seattle area.
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good. i haven’t been hearing much from Seattle in the startup space lately.
Very cool. I guess they didn’t get Ron Conway’s memo.
These are the times to invest in start-ups…assuming you have the cash.
such a narrow focus on seattle will only hinder there options. finding a hot untapped startup can be like looking for a needle in a haystack. the internet is bottoming out. apex of innovation is upon us. better for them to focus on all potential startups nationally. there will be very few game changers in the future of the internet. the major players are set and the digital footprints and pathways have been poured in concrete. As days go by the concrete only gets harder and harder. users habits are hardening. there is nothing cool about internet venture funds puting there blinders on and missing out on what can becalled once a lifetime opportunities. in 5 years there may be no more startups. the innovation evolution well will have run dry. food for fodder. http://seesmic.com/videos/l5V4uSVcvF
MasterLocator.com
right. this whole internet thing is over.
Who is this damn ‘locator’ loser???
LOL! I heard from a high-level Ford exec in the early 00s that this whole internet thing is a fad.
I know no one want’s to talk about “inevitable innovation” that will automate everything and put majority of tech workers out of a job.
the innovation well is drying up as we speak. imagine someone trying to create a leading app or website 5 years from now competing with the 10’s of thousands apps and millions of websites created by then. Not gonna happen. Like diving into a Deadpool. TC 50 is a great example of grasping at straws innovation. Look who won. Lammer a business form of twibber (business text messaging). You get 1500 tech people paying $3000 each in a room to watch blahgirls and Lammer as leading innovative companies chosen out of over a thousand entries from around the world. Come On. Dont get me wrong I admire MA’s work. Sheer Genius. Proves there are alot of sheep out there. Very few if any true leaders in tech. Followers.
I know MA will one day put his arm around me and share with the world how my game changing billion dollar startup debuted on his website. Blowing away Powerschlep as the MVP of TC startups.
My specialty is predicting the future by creating it.
Inevitable Evolution- can you smell it?
FollowLocator.com
If there is one thing, one thing, that the history of mankind has taught us, it’s that human innovation will never stop. Descartes might as well referred to the human spirit. I think, therefore I am.
“puting there blinders….”
’nuff said
Ouch! Very nice.
Mike, our Seattle-area startup has a webpage all about you; and you’ve got a 10 out of 10 rating for ’smart’. http://www.personratings.com/n.....rington/88
I wish there was one if these in the Sacramento, CA area.
I am looking for funding now and it seems the economy is scaring away many of the smaller investors that typically invest in the range I am looking for. I am looking for exactly the range of funding that the Founder’s Co-op is seeking to fund. It sucks that their region is so narrow.
Investments at this moment,No way
Man I miss Seattle.. The tech/startup community is great.
Yep, Seattle’s tech scene has been quite surprising. I walk around Seattle/Bellevue/Redmond and it feels like one big tech office. When I moved here 6 months ago: 1) I couldn’t believe how many coffee shops could fit on 1 block, and 2) the number of people sitting around laptops collaborating on “the next big thing” in those shops.
To “MasterLocator.com”…. come to Seattle, bring your laptop and hang out in the closest Starbucks (although it might be hard to decide which is the closest) for a few hours– I doubt you’ll still feel the same.
There are MANY MANY MANY people here with great ideas, good hearts, and will work until they collapse. In contrast, having just moved out of L.A. where there are MANY BAD ideas and tons of money hungry hustlers… it is a no-brainer: my investments are far more solid with a Seattle based company just based on the community that surrounds them.
-William Kapke
CEO, “the next big thing”
We need more of this in other areas and countries. Best of luck to them.
Find start-up businesses in the UK - http://www.michrome.com
James hit the nail on the head. From what I’ve heard in talking with potential investors in various “2nd rate” tech communities there is a lot of money WANTING to be invested, but no real path for the startups to find the money. Something like this seems like a no-brainer, wouldn’t be surprised to see more of these little funds sprouting up.
BTW to all, Seattle sucks, don’t move there. Please.
Seattle is an awesome place to live. Great motivating atmosphere which is why Tech startups thrive there so much. Compared to the Valley, everyone in Seattle not only wants to succeed, but they want you along for the ride as well.
A happy surrounding makes for an even happier you -
Hate all you want on rainy, Starbucks infused Seattle; but with the likes of Microsoft, Amazon, Redfin etc. all sprouting from the area, expect to be seeing left field ideas take flight.
Hard work, and the ability to sell a simple idea really go a long ways in today’s society.
Nothing wrong to want to support your city or state. Sure those outside will be left out. But you have to also look out for your own otherwise no one will.
Love the movement towards structured earlier early stage investing, but I’m suprised nobody has brought up the “Co-op” part of their investment model?
What do people think of it??
On top of their investment they take 5% common stock and put it into a pool that each of the companies in the portfolio ‘owns’ and benefits from should one company (or hopefully all) have some sort of exit.
It’s either really cool or really annoying for the founders. Thoughts?
The arguement of course is that if there’s a big exit, everyone involved wins, making each company ‘invested’ in helping the others succeed….
But the companies they seem to look to invest in are the smaller, efficient, quick to get to cash flow positive (I love these types of companies) but not neccesarily ones with a big exit in their future. What’s the incentive for the company with a big idea and a potential exit if the other companies in the portfolio are those pesky ‘lifestyle, as the valley likes to call them’ businesses that keep generating cash year after year with no big exit in site?
I think the type of fund (which is very creative and unique as far as I know) deserves more discussion than Seattle (which rocks).
B - I’m very familiar with this model and you’re absolutely right. It tries to get everyone in the same boat where everyone wins if someone wins. It also allows a “founder” to diversify his risk a little. Conventionally, a founder would have all his eggs in one small basket (his startup). With this “co-op” model, he could spread his eggs around in several baskets (albeit still risky baskets). The symmetry of risk has to be managed carefully here. Someone working on a big idea with a long harvest horizon will be a little concerned that his counterparts are working on small hits that make just decent returns. Nevertheless, this in itself is a form of diversification.
Seattle totally sucks! Don’t move here. And don’t bring your car.
Seattle only sucks if you hate money, technology, and pretty women.
That’s true don’t move here just come visit and spend a lot of money please.
It’s very important to determine what your marketing budget is as well. You should probably talk to a graphic design company so that you know how much it will cost to get your custom logo together, as well as a website that really sets you apart and lets your customers know you are the real deal. Check out http://www.anchormd.com for more information on some great graphic design.