When
Extreme Startups launched in early 2012, co-founder Sunil Sharma says it was with a very specific goal in mind: find "high potential, disruptive, early stage tech companies" and give investors a first crack at supporting them. Formed by a collective of venture capitalists, the tech incubator's goal is to hone in on young companies with the best chances of success, and boost their odds further.
Applications are now open for the fourth cohort of participants in Extreme Startups. Each cohort consists of five companies; each company receives $50,000 up front, mentorship, and streamlined access to more than $150,000 funding (through the Business Development Bank of Canada and the Ontario Centres for Excellence) once they have completed the 12 week program.
In exchange, Extreme Startups gets a ten per cent stake in each company, distributed across the venture capitalists who make up Extreme's investors (the distribution of equity varies in each case).
We asked Dale Millstein, a visiting associate at Extreme Startups, what advice he had for potential applicants. "Apply!" he said. "It sounds pretty simple, but most people are afraid."
Whether or not an applicant is chosen, he says, going through that process is worthwhile. Extreme's goal is to foster community, and applying helps get new companies' names out, and exposes them to opportunities that may bear fruit later on.
As for who is likely to make the cut, Millstein says, the selection committee will be especially "looking at the quality of the team and technology talent," something he identifies as particularly important for younger companies with little experience in the marketplace.
Extreme Startups is
accepting applications for this round of investment until August 9, 2013.
Writer: Hamutal Dotan
Sources: Dale Millstein, visiting associate, and Funil Sharma co-founder, Extreme Startups