Techstars Demo Day Experiments
This post originally appeared on blog.up.co
At Techstars, we have a culture of innovation and experimentation. Our strength stems from our diversity and distributed nature. Every Techstars location adds its own local flavor and experiments constantly. We tweak the program content, how we engage mentors and corporate partners, and also how we help our founders connect with investors. We then share what works and what doesn’t to make the network better over time.
No matter if you are going to a program in NY, Boston or Cape Town, you will get the very best Techstars Demo Day experience.
A New Take on an Old Idea
Since early 2007, our Demo Days have consistently attracted hundreds of investors and community members. Demo Days are powerful community celebrations and an effective way to connect the founders and investors. Techstars companies have now raised more than $2.5B and Demo Day has been a huge part of that success.
For the past couple of years, we’ve been experimenting with additional ways we can improve and optimize this connection in addition to Demo Days.
It started back in Boulder in 2014 when Nicole Glaros, then a Managing Director and now Chief Product Officer at Techstars, launched an investor-only Demo Day for active investors.
The idea and the formula was quite simple: investors were split into groups with about 20 investors per room. The CEOs walked from one room to another and gave their Demo Day Pitch. After the pitch, investors did a quick Q&A and the founder moved onto the next room. The investors had contact information for every founder and were able to reach out directly.
This was followed by the traditional Demo Day, which was more of a community celebration, and most of the investors who were at the private event also attended that Demo Day.
An Improved Experience for Everyone Involved
This new format was an instant success. Both investors and founders loved the intimacy of the setting and the ability to interact and ask questions. Over the next few years, other Techstars programs experimented with a version of this setup, including our Seattle and Chicago programs. Jenny Fielding just ran an invite-only investor Demo Day for our FinTech program in NYC.
Our Chicago program recently rented 10 suites in a hotel with eight active investors per room. The only folks who participated were people who wrote checks in a previous class. CEOs did the pitches followed by Q&A. In addition, Chicago added another tweak - investors had five minutes to discuss the company amongst themselves. Once again, investors and founders loved the format.
This year Techstars NYC is building on the experiments from other cities and rolling our own experiment. We are introducing Exclusive Investor Preview and Investor only Demo Day.
The Investor Preview
The Investor Preview is invite-only and takes place before the Demo Day. To get invited, you need to have invested in at least one Techstars NYC company within the last four years. Each investor is pre-matched by us with six companies based on their investment focus. Before the preview, investors get elevator pitches from all companies in the class and can ask to swap out one or more companies. Similarly, founders can opt-out of the meetings with investors whom they don’t want to meet.
During the preview, each investor comes in for 2.5 hours and has six 25 minute meetings. During the first five minutes of the meeting, the investor watches the video of the company pitch and then spends 20 minutes doing Q&A with the CEO. After that, the investor moves onto the next company. When there is a mutual interest to continue, the founder and investor exchange contact information. So far we’ve gotten hugely positive feedback on this format from both investors and the founders.
For the Investor only Demo Day we are trying a new format as well.
The Investor Only Demo Day
Again, the Demo Day is invite-only for investors, but it is not required that you have previously invested in one of our companies. The Demo Day on 9/29 will take place in the Techstars NYC office, where 15 CEOs will have stations much like you would have at a conference. We issued 200 investor tickets for 10 a.m., 200 investor tickets for 11 a.m., 200 investor tickets for noon, etc.
When investors come in, they can quickly connect with each CEO or go to a theater space to watch video pitches. Techstars staff will walk around and help investors quickly send the contact information to all companies they want to follow up with.
We anticipate an amazing turn out this coming Thursday and look forward to everyone’s feedback.
The best companies constantly tweak and iterate. At Techstars, experimentation and improvement are part of our DNA. This is what we tell our founders and this is what we constantly do internally. Not only do we have cool new tweaks this year, we’ve already been thinking about new things that we will be doing in 2017.
Do you have ideas for how we can enhance Demo Days or do anything else better? Please leave a comment here or email me at email@example.com.