Extreme Venture Partners is hosting a summer program for start-ups called Extreme University. It’s reminiscent of the Trilogy University, which should come as no surprise given Farhan Thawar is ex-Trilogy Software (TU98 to be exact). The Extreme University program is a rapid start 12 week program that aims to bring the rigor and mentoring and connections for start-ups. The program is based in Toronto, but given Extreme’s strong ties to Silicon Valley, New York, and around the globe you can imagine that these companies will gain access to their network.
Applications are due by June 12, 2009. The program runs June 22 to September 4, 2009. And will conclude with a Demo event on September 12, 2009.
What: A summer technology start-up program that focuses on industry networking, technology mentoring and above all delivering a product to potential follow-on funders after only 12 weeks.
Who: We are looking for four smart and fast moving teams to participate. Typically all members of the two-three person team will be deep technically, but at least one of the founders should have a technical background.
How: After you apply and are accepted you will:
- Get $5,000 (US) per founder in exchange for a 10% ownership stake in your company
- Move your team to our shared ExtremeU office space at Yonge & King (downtown Toronto)
- Have weekly mentoring sessions by industry experts in technology, funding, legal, PR, marketing and HR
- Meet a who’s who of experts at our weekly socials and have an opportunity to practice your pitch and demo your in-progress prototype
- Have access to local shared resources to accelerate product development (mentors, servers)
When: Applications are due by Friday June 12th, 2009. The program starts Monday June 22nd, 2009 to Friday September 4th, 2009 at the ExtremeU offices in Toronto at Yonge and King. The final demo day will be Tuesday September 15th, 2009 at Demo camp.
It’s a great opportunity for entrepreneurs and founders to come to Toronto. Work with a group of people at Extreme Venture Partners, gain exposure to a local, national and international network to help you build and grow a new company and product.
A couple of folks have sent me questions about the numbers.
Let’s make some assumptions:
* ExtremeVP will own 10% post funding
* 2 founders * $5k/founder = $10,000
* This gives a post valuation of $100,000.
Is this good? Well that depends. It’s very similar to the YCombinator number.
Which using the 2 founders, and the published median of 6% gives a post valuation of $250,000. It would be nice to see the ExtremeVP guys adjust the numbers slightly.
A couple of folks have sent me questions about the numbers.
Let's make some assumptions:
* ExtremeVP will own 10% post funding
* 2 founders * $5k/founder = $10,000
* This gives a post valuation of $100,000.
Is this good? Well that depends. It's very similar to the YCombinator number.
Which using the 2 founders, and the published median of 6% gives a post valuation of $250,000. It would be nice to see the ExtremeVP guys adjust the numbers slightly.
10% is seems like a lot to me, particularly for only $5k/founder, and even more since just working normally over 12 weeks is worth $30k/founder for my group.
The problem is that the amounts are really only good if your still in school and wouldn’t earn much more than that anyway. People who are fast and experienced can’t really participate at that kind of level, but are the ones who are more likely to actually produce something tangible. IMO.
10% is seems like a lot to me, particularly for only $5k/founder, and even more since just working normally over 12 weeks is worth $30k/founder for my group.
The problem is that the amounts are really only good if your still in school and wouldn't earn much more than that anyway. People who are fast and experienced can't really participate at that kind of level, but are the ones who are more likely to actually produce something tangible. IMO.
Hey Brill,
I’m with you. I think this is much more about talent acquistion, so it’s about attracting the right type of potential founder. It’s one that needs the Extreme University solution. You’re right, it’s probably a young individual, still in school or recently graduated that can live on $5k for 3 months.
Is it perfect? No. Is the ExtremeVP team trying? Hell yeah!
Having been through Trilogy University (well, Industry TU technically, so it was a little different and more about culture indoctrination), I know that every “student” will get a deep dive on technology, business planning, and new venture creation. Could you do this on your own? Sure. Is it more fun with a group of others? That’s why I still talk to my grad school mates about the hell we went through together.
Hey Brill,
I'm with you. I think this is much more about talent acquistion, so it's about attracting the right type of potential founder. It's one that needs the Extreme University solution. You're right, it's probably a young individual, still in school or recently graduated that can live on $5k for 3 months.
Is it perfect? No. Is the ExtremeVP team trying? Hell yeah!
Having been through Trilogy University (well, Industry TU technically, so it was a little different and more about culture indoctrination), I know that every “student” will get a deep dive on technology, business planning, and new venture creation. Could you do this on your own? Sure. Is it more fun with a group of others? That's why I still talk to my grad school mates about the hell we went through together.
This is a fundamental problem with these types of models. They always target younger, less experienced people who, while they might be innovative, intelligent people with lots of potential, have to have a lower chance of success compared with others who have innovative ideas as well as experience executing. There are no YCombinator’s or ExtremeU’s for the “experienced” class and the best (or only) option to do a startup is if you fall into the small group (especially in Canada/Toronto) of fairchildren who are able to invest more than just sweat equity into their projects. Rypple and a few others are doing this now but frankly, this is a small group and does not represent all the good ideas out there waiting to be developed. I cover this issue on my blog at http://eben.ca/lowpost/2009/05/16/the-startup-that-never-gets-off-the-ground/ if anyone cares to have a read.
This is a fundamental problem with these types of models. They always target younger, less experienced people who, while they might be innovative, intelligent people with lots of potential, have to have a lower chance of success compared with others who have innovative ideas as well as experience executing. There are no YCombinator's or ExtremeU's for the “experienced” class and the best (or only) option to do a startup is if you fall into the small group (especially in Canada/Toronto) of fairchildren who are able to invest more than just sweat equity into their projects. Rypple and a few others are doing this now but frankly, this is a small group and does not represent all the good ideas out there waiting to be developed. I cover this issue on my blog at http://eben.ca/lowpost/2009/05/16/the-startup-t… if anyone cares to have a read.
Hey – if I had gotten the offer I would have been Trilogy U ’98 too. I was there for interviews with a whole recruiting class, and I can tell you they had a heck of a company culture. It was the style at the time… :) This ExtremeU sounds like fun – but as mentioned it sounds more like Y Combinator, TechStars, and similar incubator/bootcamps, no?
Hey – if I had gotten the offer I would have been Trilogy U '98 too. I was there for interviews with a whole recruiting class, and I can tell you they had a heck of a company culture. It was the style at the time… :) This ExtremeU sounds like fun – but as mentioned it sounds more like Y Combinator, TechStars, and similar incubator/bootcamps, no?
@ceben,
This is what a personal network, some savings, a lot of sweat equity and the desire are all about. You hear about stories about entrepreneurs taking second mortgages, doing consulting gigs, and making sacrifices. You don’t get to start at the same level that you are at right now. This means that you either need to hate your job so much that you to start something, or that your idea is something you believe will overcome all of the odds.
There are teams like iotum http://iotum.com/ in Ottawa that have leveraged personal investment, government funding, external angel investors, and other sources to keep their company afloat. There are other entrepreneurs like Chris Sukornyk at http://chango.com/ and http://tweetbucks.com/ or Albert Lai at http://kontagent.com/ or Stuart MacDonald http://tripharbor.com/ that reinvest their past exits. There are others that take a second mortgage on their house, that invest their savings, that make personal sacrifices to make it happen.
I think a big part of the reason for the focus on new or recent university graduates is because of their risk exposure. They are still hungry and flexible. They are able to live for 3 months on $3-8k, depending on how resourceful they are.
I think that a program like ExtremeU is a perfect program for a seasoned employee. It would offset the costs or add a slight cash influx to help you get started. Does it mean that you’ll continue to have a 6 figure salary? Hell no! But it gives you the opportunity to get up and running, and have the benefits of the cohort, etc.
@ceben,
This is what a personal network, some savings, a lot of sweat equity and the desire are all about. You hear about stories about entrepreneurs taking second mortgages, doing consulting gigs, and making sacrifices. You don't get to start at the same level that you are at right now. This means that you either need to hate your job so much that you to start something, or that your idea is something you believe will overcome all of the odds.
There are teams like iotum http://iotum.com/ in Ottawa that have leveraged personal investment, government funding, external angel investors, and other sources to keep their company afloat. There are other entrepreneurs like Chris Sukornyk at http://chango.com/ and http://tweetbucks.com/ or Albert Lai at http://kontagent.com/ or Stuart MacDonald http://tripharbor.com/ that reinvest their past exits. There are others that take a second mortgage on their house, that invest their savings, that make personal sacrifices to make it happen.
I think a big part of the reason for the focus on new or recent university graduates is because of their risk exposure. They are still hungry and flexible. They are able to live for 3 months on $3-8k, depending on how resourceful they are.
I think that a program like ExtremeU is a perfect program for a seasoned employee. It would offset the costs or add a slight cash influx to help you get started. Does it mean that you'll continue to have a 6 figure salary? Hell no! But it gives you the opportunity to get up and running, and have the benefits of the cohort, etc.
Mike,
The TU98 reference was that Farhan has been through a tough, fun, intense bootcamp before.
But yes, you are correct sir, the program itself is styled after YC or TechStars or others of the new fangled incubator ilk.
Mike,
The TU98 reference was that Farhan has been through a tough, fun, intense bootcamp before.
But yes, you are correct sir, the program itself is styled after YC or TechStars or others of the new fangled incubator ilk.
I’m having this conversation in two places with you (http://eben.ca/lowpost/2009/05/16/the-startup-that-never-gets-off-the-ground/?dsq=10529003#comment-10529003). I hear the sacrifice, commitment arguement and I buy it. I just wonder if there isn’t another way to target and/or help people who just can’t, for whatever reason, leave their job, take 12 wks off, take a pay cut, etc… but are willing and motivated to work on their ideas. Rather than repeating myself, you can refer to the other discussion linked above.
Great discussion though – this is what I like to see.
I'm having this conversation in two places with you (http://eben.ca/lowpost/2009/05/16/the-startup-t…). I hear the sacrifice, commitment arguement and I buy it. I just wonder if there isn't another way to target and/or help people who just can't, for whatever reason, leave their job, take 12 wks off, take a pay cut, etc… but are willing and motivated to work on their ideas. Rather than repeating myself, you can refer to the other discussion linked above.
Great discussion though – this is what I like to see.
Curious to what is going on with Extreme U. What companies are in the program right now?
Curious to what is going on with Extreme U. What companies are in the program right now?
Curious to what is going on with Extreme U. What companies are in the program right now?