Minnesota’s one and only startup accelerator program, Project Skyway, is extending the window to apply for their second cycle, according to co founder Casey Allen.
Initially slated to close last month, the move suggests a more patient approach based off learning experiences from the first class, which ran from August through October of last year.
“We’re going downstream to earlier stage companies this time,” Allen explained. “…we have a more precise idea of what kind of companies we’re looking for. And in the quest for that that, we’re extending the opportunity to ensure the best fit and right culture,” Allen said.
Minnesota’s first seed-stage startup accelerator program kicks off a second cycle that commences today and runs through the end of April.
Project Skyway is modeled after the global ‘incubation’ trend of providing emerging entrepreneurs with the cash, mentorship, and visibility necessary to expedite the process of bringing new products to market. This Minnesota twist emphasizes building companies with long-term, sustainable value and ethical practices.
Conceived one year ago by Cem Erdem and partner Casey Allen, their vision is to fund 100 companies in Minnesota through a systematic bi-annual class rotation. Startups that participate currently receive $6,000 per founder (max $18,000) in exchange for 9% equity. The program is funded to date exclusively by Erdem, a proven local entrepreneur who has started and grown his own software company, Augusoft.
Updated 9/30: Star Tribune reports that Project Skyway has reduced equity stakes from 9% to 6%.
Updated 10/8: The drop-out is official.
Entrepreneurial brothers Ryan and Evan Freed, who collectively entered Project Skyway as Uhungry, packed up and hit the road earlier this week destined to return to their hometown of Long Island, New York.
The unexpected move comes at a time when Project Skyway’s remaining five companies crossover the halfway point of their three month tech acceleration in preparation for ‘demo day’ on October 26.
While Uhungry’s model essentially began as a social means for college students to make and receive food around campus, it seemed to morph into something different on a recurring basis (yesterday it was termed Pickaboo).
Minnesota’s first tech accelerator hit another milestone today when the inaugural summer class gathered together for their first day of school at CoCo Minneapolis earlier this morning.
Although it was generally expected that Project Skyway’s first group would consist of ten ‘skywalkers’ (pared from 25 original ‘contenders’), it was revealed in mid-June that only eight had actually been chosen to advance at the time.
Founder Cem Erdem maintains that the plan all along was to select “up to ten” startups for the summer class, with the stated goal of “investing in 100 startups over the next five years.” Apparently, the financier didn’t feel compelled enough to back ten out the gate, which is only fair — after all, it’s his hand that’s writing the checks here.
Today, we’ve learned that one of those eight, Health IT startup Qualtrx, has officially dropped-out of Project Skyway for “internal reasons” and it also appears that PayPongo, a mobile payment solution, is in limbo right now after playing hooky on the first day of school.
Local technology entrepreneurs now have a second major resource of late, when Minnesota’s first tech-oriented accelerator program begins accepting first round applications tomorrow.
Six months in the making, Project Skyway will choose up to 10 early-stage tech companies in SaaS & mobile to participate in a three-month long, mentor-driven startup acceleration based out of Minneapolis.
“Our emphasis is on building tech companies with long-term, sustainable value, ethical practices, mentorship, and strong networks,” Project Skyway founder Cem Erdem reiterates.
The program offers $6k in seed funding per founder (1-5), mentorship, co-working space (TBA), dedicated outsourced software development and connections-a-plenty. In exchange for participating in the program, companies give 6 – 9% of founders stock.
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