Startup Accelerator Spotlight: Alchemist Accelerator

Alchemist is an accelerator exclusively for startups whose revenue comes from enterprises, not consumers.

Name of Accelerator: Alchemist Accelerator

Ravi Belani, Director

Location: Bay Area

Website: www.alchemistaccelerator.com

Director: Rav Belani

Partner and COO: Danielle D’Agostaro

This article is a part of our Startup Accelerator Spotlight Series featuring accelerators from around the world. We hope these spotlights will assist the entrepreneur should they consider attending an accelerator program.

In two sentences or less, tell us about your accelerator and its objectives.

The Alchemist Accelerator was born out of a 3 Year entrepreneurship education outreach started in the Harvard Club of San Francisco called the Alchemist Series. It is a highly distinctive organization that aims to fund the best enterprise companies with the potential to change the world.

Why is your accelerator program unique? Please describe the benefits of participation in your program.

Founders want to join Alchemist for its focus on the enterprise and for its network of top-quality founders, investors, and Fortune 500 companies.

Benefits Include:

Network: Alchemist companies get access to over 14,000 enterprise contacts and invite-only networking events.
Financial: Startups are offered $36,000 for an equity stake in their company. Further investment opportunities are possible through Alchemist’s structured events and resources.
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Perks: The accelerator companies get access to over $1M in discounted products and services including legal and banking services, cloud hosting, co-working spaces, and even gym membership.

What is the most difficult part of working with startups?

Every startup is in a different stage with different needs.

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What do you enjoy the most; what do you find most appealing about working with entrepreneurial startups?

I find founders to be the most inspirational people in the world. Many have decided to take a leap of faith and build something that they are passionate about. It takes a lot of courage and willpower to have that kind of conviction.

Tell us about your success stories; which are the most interesting companies to have participated in your program?

We’ve had 15 acquisitions to date (ie. Assemblage (Acq by Cisco), MobileSpan (Acq by Dropbox), Airpost (Acq by Box)). We also have companies that have over $ 1 M ARR (ie. MightyHive, Oomnitza, MoEngage). Some of the most interesting companies in our portfolio are working on building quantum computers, antimatter, and printing DNA.

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What are the most important factors startup entrepreneurs should consider when contemplating attending an accelerator?

The Terms
Including duration, working capital provided, common stock contribution to the accelerator, physical workspace, frequency of meetings and training sessions such as pitch training and business plan reviews;
The Reputation and Value Proposition
The mission statement, a primary value proposition, and an operating plan (number of classes per year, number of companies per class, and a list of participating investors at their demo day);
Domain Expertise
Via mentors or coaches in the markets or technology areas being addressed by the startup;
In-Depth Review
Routine qualification of companies applying;
Level of Interest, Traction, and Engagement with companies.

What else would you like to share?

The Alchemist Accelerator is an accelerator exclusively for startups whose revenue comes from enterprises, not consumers. We are passionate about the needs of enterprise seed ventures, and believe they are different enough to warrant a program specifically for them. The accelerator focuses on enterprise customer development, sales (direct and online), market validation, and a structured path to fundraising. We have the most sought-after advisor faculty, guest lecturers, venture capitalists, and Fortune 100 customers primed to be resources for you. We are very excited about building a fellowship of founders building “change the world” companies that sell to the enterprise.

When evaluating applications, the most important element is the team and founders that exhibit very strong technical chops, tenacity, ability to explain complicated things clearly, judgment in making good tradeoffs, good product sense, and a passion for outcomes, not process. We have rolling application deadlines and you can submit an application at any time before the program starts. (The next program begins November 30^th)

Are you familiar with other accelerators you believe should be spotlighted? If so, we would like to hear from you. Tell us about them, sharing your comments below!

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Definitioner

Bounce Rate

Website

An organized property made up of a group of connected pages on the World Wide Web, (Internet) that are considered a single entity.⁶

Working Capital

In accounting terms, it is the difference between current assets and current liabilities that can be turned into cash. Positive Working Capital means that the company has sufficient liquid assets to cover its short term liabilities (expenses).⁶

COO

Chief Operating Officer.

Related Terms Chief Security Officer | Chief Financial Officer | Chief Analytic Officer Related Articles 150+ Startup Acronyms for Entrepreneurs

Value Proposition

A statement a company utilizes to express why customers should purchase their product or service, as compared to that of a competitor. The objective of the statement is to convince potential customers that their product or service adds more value than that of alternative offerings.⁶

Advisor

An individual providing business connections, guidance, advice and support to the entrepreneur as they develop and grow their startup.⁶

Entrepreneur

A person who organizes and operates a business or businesses, taking on greater than normal financial risks to do so. Entrepreneurs are the founders of startups and are the people angel investors support.⁷

Portfolio

A strategic collection of startup companies invested in by an angel, angel group or Venture Capital Fund.⁶

Warrant

A type of security that entitles the holder to buy a proportionate amount of common stock or preferred stock at a specified price for a period of years. Warrants are usually issued together with a loan, a bond, or preferred stock and act as sweeteners, to enhance the marketability of the accompanying securities. They are also known as stock-purchase warrants and subscription warrants.³

Venture

Venture is often used for referring to a risky start-up or enterprise company.⁵

Startup

A startup is a new business venture / enterprise in its initial or early stages of development. These stages include the concept, seed, early, growth and mezzanine stages.⁶

Equity

Ownership in the capital of a Company. In corporations, it is called “stock”; in limited partnerships or LLCs, it is called “interests” or “units.”³
This designation is given to a stockholder’s ownership in a company. The amount of ownership is obtained when an individual or corporation purchases one or more shares of stock (equity shares). The more equity purchased, the greater the ownership.⁴

Director

Person elected by shareholders to serve on the board of directors. The directors appoint the president, vice president and all other operating officers, and decide when dividends should be paid (among other matters).³

Demo Day

Where the graduating class of Incubators and Accelerators is given a chance to pitch to investors. ²

Pitch

A presentation in which a startup founder attempts to persuade an investor of the viability of their company. The presentation spectrum varies based on the specific purpose of the pitch. Brief presentations in which an entrepreneur provides a 30 - 60 second overview of their idea, business model and marketing strategy, with the purpose of attaining a followup audience with an investor are described as elevator pitches. Formal, detailed presentations utilizing power point type slide decks, with the specific objective of seeking investment from angel groups or VCs, are known as investment presentation pitches.⁶

Market

Based on supply and demand, this term refers to the societal arrangement whereby consumers purchase goods and services from businesses and individual sellers in exchange for currency. In economic relevance, the “market” can be divided into different industries, such as biotechnology, food, etc. The exchange between the consumer and seller contribute to a society’s market economy which greatly depends on these transactions for economic viability.⁴

Common Stock

A class of ownership that has lower claims on earnings and assets than Preferred Stock. It is riskier to own common stock because in the event of Liquidation, common stock shareholders are the last to claim rights to assets.²
A unit of ownership of a corporation. In the case of a public company, the stock is traded between investors on various exchanges. Owners of common stock are typically entitled to vote on the selection of directors and other important events and in some cases receive dividends on their holdings. Investors who purchase common stock hope that the stock price will increase so the value of their investment will appreciate. Common stock offers no performance guarantees. Additionally, in the event that a corporation is liquidated, the claims of secured and unsecured creditors and owners of bonds and preferred stock take precedence over the claims of those who own common stock.³
This term represents a constituent in corporate ownership. People who own shares of common stock (common stockholders) often have voting rights in their company’s decision-making matters and executive board of elections. Through company dividends and capital appreciation of corporate assets, common stockholders can also share in their company’s financial success.⁴

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Capital

Financial capital is a term that can refer to the money exchanged between entrepreneurs and investors during a business deal. Entrepreneurs need to raise capital for their startups while investors can provide them with the needed capital (or funding). Financial capital usually comes with interest, and new business owners can use their financial capital in purchasing real capital (or machinery or equipment) for their new business.⁴

Business Plan

A document utilized by management and relied upon heavily by some investors, that entrepreneurs use in detailing their business concept as well as their company’s overall strategic and financial objectives. In recent years the Business Model Canvas has become increasingly popular with both entrepreneurs and managers as a guide or framework for the startup's efforts, and in many cases is now utilized in lieu of the Business Plan by these parties.⁶

Accelerator

In an Accelerator, a Seed investment is made in return for equity and usually between $15K - $50K. Startups are admitted in classes and work in groups. They are generally given a deadline to complete intensive training and iteration (typically 1 week to 6 months). Startups end an accelerator program with a Demo Day in which they pitch to investors.²

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