Business Incubator Series: Dave Knox, The Brandery, Cincinnati, Ohio (Part 3)

By guest authors Irina Patterson and Candice Arnold

Dave: When we select our companies, we’re trying to get a feel for who the entrepreneurs themselves are. Are they ones who would benefit from a mentorship-driven network, in terms of being coachable and being open to change?

The final thing is just looking at the team’s – for lack of a better term – hustle, drive, and passion for creating a meaningful company.

Going through an accelerator is a very stressful thing and something you have to have your hearts and nerves and sinew into.

Each company receives $20,000. In exchange, we receive 6% equity stake as founder shares.

Irina: You said mentorship is the most important. Is there anything else you use to accelerate companies besides mentorship?

Dave: No, just our curriculum in the program. Each week we have a theme. We have a speaker assigned to come give a class and teach. Then every week, we have various guest speakers who come in based on their ability.

Irina: What are your metrics for success?

Dave: We’re still defining that. Right now, some of the companies have either been able to launch their products on their own or have been able to receive funding.

Irina: Can you name some of the companies you’ve accelerated?

Dave: You can see all the companies on our website, but of the standouts from 2010, the first would be Giftiki, which is a social gift giving platform. They raised funding from Tim Draper at DFJ (Draper Fisher Jurvetson). That’s a great company that came out of the program.

We also have Venture Pax, which is “Yelp for the outdoors,” answering the question of what to do outdoors.

And then VenueAgent is “OpenTable for the event planning space” to book different venues for weddings, corporate events, and parties.

Irina: You say the accelerator is nonprofit. How is it funded?

Dave: Our operating funding comes from donations from people who share our mission of economic development for the Midwest. Our investment, the $20,000 grants, comes through our partnership with an organization called CincyTech, which is a public–private venture firm here in town.

And then we receive a 6% equity stake. Our goal is that in three to four years from now, our companies [will have] successful exits that will fund the program for many years to come.

Irina: How many companies from Cincinnati are in the program?

Dave: Two of the nine are from Cincinnati. We have one from Chicago, one from New York/Philadelphia, one from China, one from Savannah, Georgia/Germany. They’re coming from across the country and across the world.

Irina: Is there anything you’d like to add?

Dave: Yes. If any investors happen to be reading this, we’d love for them to attend our Demo Day on October 13, 2011.

Irina: Thank you, Dave.

This segment is part 3 in the series : Business Incubator Series: Dave Knox, The Brandery, Cincinnati, Ohio
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