When your fourth-grade class held a science fair, you spent months making a volcano erupt or exploring the mating habits of sharks. But once the fair was over, there were two options: the trophy shelf or the trash can. There was nowhere for those ideas to go once the fair was over, win or lose. But one idea-sharing event, where adult presenters will be showing off the business ideas they have been working on, can lead beyond the convention hall to a business, products for the state economy or jobs for its citizens. But first, they have to get through Demo Day.
Every year, Philadelphia venture firm DreamIt Ventures invests state money in business ideas they believe have potential. After receiving funding, the search is on for companies that fit the program and, once they are in, DreamIt works on refining and planning to create a viable business model. After three months of coaching, editing and mentoring, DreamIt unveils the projects with the most potential at an event they call Demo Day, which took place yesterday at Philadelphia’s Independence Visitors Center. Now in its third season, DreamIt announced this week that they have received $125,000 to continue the program for a fourth year. With this funding, DreamIt Co-Founder Steve Welch believes the program has finally hit its stride, knowing what companies they want to work with.
“We have companies come in with an idea on a napkin and, if that’s the case, hopefully they can get to the point where they have some customer interaction or customer traction,” says Welch. “If they have customer traction, in three months we can accelerate that customer traction and help generate revenue. But we need to get to that step within three months.”
This expedited process tends to rule out biomedical drugs and medical devices. In the past, the program offered seed money to 10 firms able to work in this faster business model. Traditionally, web-based businesses and IT firms have fared well but this year, the program has added four businesses with a learning component through a partnership with Startl.com, a nonprofit focused on driving innovation in digital learning. Yesterday’s event allowed these 14 companies to join a roster with business leaders who have received $4 million from Google, appeared on national television and won seats on coveted technology and industry panels across the country. And with the new seed money in place, 10 new companies will begin their DreamIt journey this fall.
“We are really looking for companies that will be open to mentorship and will get real value out of the program,” says Co-Founder Kerry Rupp. “A lot of the program is providing mentorship and help and if a team is stubborn and on a single-minded path, they really don’t fit the program. That doesn’t mean they won’t be successful but we really want teams who will engage with us in the process.”
Source: Kerry Rupp, Steve Welch, DreamIt Ventures
Writer: John Steele