November 23, 2016

The RVC Impact HyperAccelerator


Unlike other accelerators the RVC HyperAccelerator doesn’t take your valuable equity and doesn’t take twelve weeks of your venture’s life. The accelerator has a low fee to cover the costs of providing the program and founders exit with a lot of acceleration and no loss of equity. You’ll get exposure to the Rockies Impact Fund team and experienced mentors. Impact companies are special and have specific requirements for success , while also doing all the work that non-impact companies do. Impact companies still need a solid go to market strategy, capital plan, legal basics, strategic planning, believable proformas, valuation, exit strategies, pitch coaching, and term sheets to negotiate with investors. And a compelling pitch for demo day!

What is the Impact HyperAccelerator

The Rockies Venture Institute’s Impact HyperAccelerator is a unique and innovative program to develop and prepare Social, Environmental and Economic Development Impact companies in a one-week immersion program that covers all the bases for venture capital and fast growth startup strategy. Companies that graduate from the program are more likely to raise angel and VC funding and are better able to grow quickly while achieving measurable impact objectives.

You may be an “impact company” and not even know it

Most of the “impact” companies in the current RVC portfolio did not originally present themselves as “impact” companies. They were just great companies solving big problems in the world, with realizable impact objectives, and competitive financial performance. If your venture is in healthcare improvement, education technologies, agriculture technologies, clean/green tech and energy solutions, recycling/reuse, job growth (beyond what typical companies create), or provides access to capital, food, housing or clean water for communities, then you may have an impact company. We also look for diversity in startup teams and prefer companies that exhibit diversity and inclusion. There are certainly gray areas in determining what is an impact company and what isn’t, so we’ve provided a scale for you to test your venture against the RVC impact criteria.
Your venture’s legal structure can be e a B-Corp, a traditional C-Corp or an LLC. The legal structure is less important the how your company operates. We are looking for companies whose primary mission creates impact.

Impact ventures can realize equivalent or better financial results than non-impact ventures. This accelerator emphasizes business models that grow fast and create value for founders and investors as well as the communities that they serve. Mentors during the accelerator help analyze the markets, pricing, value proposition, customer segments and capital strategy for each venture. Ventures that succeed with angel investors can return AT LEAST 10X investment capital within 3-5 years. Founders, working with mentors, replace a philanthropic mindset with a value creation mindset while still retaining and improving the venture’s significant measurable positive impact.

How to interest angel investors in impact

Impact venture founders may be familiar with philanthropic “investors” whose focus is measurable impact. In contrast, angel or Venture impact investors look for competitive venture capital returns on their investment, as well as positive social outcomes from the activities of the company. Authenticity, integrity, and creativity are necessary for investors who fall anywhere along this continuum.

Grants and Impact Companies

Impact companies have opportunities to apply for many grants that are not available to non-impact tech companies. These non-dilutive funds allow impact companies to grow faster and with less dilution than equity investments require. Additionally, when angel and VC investors do invest in impact companies, they love the traction that companies achieve with non-dilutive grant funding. During the Impact HyperAccelerator companies will have a chance to meet with grant program administrators and learn techniques to find and raise grant funding.

Thinking about Impact Exits

Exits are even more important for impact companies than non-impact companies. Impact companies need to look at exits for value alignment as well as substantial financial returns. Founders of impact companies are passionate about the impact that their companies can create. A great exit strategy means that financial goals are met and that the values of the acquiring company match those of the startup. The result is that the startup is able to magnify its impact many times over using the resources of the acquirer. The HyperAccelerator program will cover how to reconcile values and economics to structure the best possible exit strategy for your company.

Metrics

Understanding Impact Metrics is key for any impact company. Investors and analysts continually work to define impact metrics that allow investors to track more than just financial performance. Understanding the major impact metrics systems enables founders to select practical metrics and talk intelligently to potential investors about company performance.

The RVC philosophy implemented in this Impact HyperAccelerator is that the core work the company does should be the metric system focus.. An oil and gas company drilling for oil may therefore never have a chance at being an impact company even if they meet established ESG objectives. But a healthcare company that drastically reduces the cost and increases the availability of healthcare to communities in a measurable way can become a priority for impact investors.

Startups are fragile and need all the resources available to them just to survive. Metric systems that add thousands of dollars of cost and tens or hundreds of hours of effort aren’t feasible for venture success. RVC has a simple process to allow a company to select metrics for greatest impact at little or no cost in time or capital. These are Real Impact metrics that make sense and allow for accountability to impact investors.

 

RVC HyperAccelerator 12 Week Accelerators
Duration 6 Days

12 Weeks

Required to be on-site for three months  redx  greencheck
Demo Day greencheck  greencheck
Multiple Mentors  greencheck  greencheck
Product/Market Fit  greencheck  greencheck
Pitch Development  greencheck  greencheck
Exit Strategy Canvas  greencheck  redx
Five Valuation Methods  greencheck  redx
Completed Term Sheet  greencheck  redx
Strategic Plan  greencheck  redx
Believable Proforma Developed  greencheck  redx
Complete Capital Strategy  greencheck  redx
Small $2995 Fee  greencheck  redx
Capital investment by Accelerator $20-125K  redx  greencheck
Takes 6-10% Equity from companies  redx  greencheck

 

Don’t get us wrong – we like twelve week accelerators!  They’re our friends and we mentor in their programs and encourage RVC investors to participate in all local demo days.  They’re just not for everyone.  Think of the HyperAccelerator as “The Thirteenth Week”.  We fill in the gaps left by most accelerators in a fraction of the time.

The HyperAccelerator is our answer to the problem many companies face when choosing accelerators. i.e. are you prepared to move your company to another city for twelve weeks and give up 6-10% of your equity in order to participate in an accelerator?  The HyperAccelerator program is offered by the Rockies Venture Institute, a 501C3 non-profit and it charges a small fee to cover the costs of the program, but lets companies keep all of their equity.  Additionally, it’s designed so that out of state participants can come to Denver for a week and return to work after the program without having to worry about housing, being apart from families or other strategic challenges – it’s like going on a super-intense vacation for a week!

Communities, corporate sponsors and economic development organizations can organize local HyperAccelerators in order to jump start local investment in startups within their communities.  Rockies Venture Institute offers an Angel Accelerator program that provides hands-on learning for High Net Worth individuals so that they can become active accredited investors (angel investors) and support their local communities while earning market-beating returns.  Contact us for licensing and live delivery options for the HyperAccelerator and Angel Accelerators for your community.