Apply to AlphaLab: $25K and 5mo free office space

http://www.alphalab.org/about.aspx

by thejash • 17 years ago

40 34 17 years ago

thejash4• 17 years ago

We applied to both YC and AlphaLab last year. We ended up being a part of AlphaLab, and I'm so glad that we did. It's been a great experience so far--lots of great advisors and contacts (who knew that Pittsburgh had so many tech companies?) Also, the terms are considerably better than YC. :)

AlphaLab is now accepting applications for the next cycle and they are very similar to the YC applications, so I thought I'd mention this to everyone. Let me know if you have questions!

pclark3• 17 years ago

did you get accepted into YC and went for AlphaLab instead?

thejash4• 17 years ago

Nope, but I'm glad that it worked out the way that it did. AlphaLab has been a really great program so far, and the benefits of YCombinator over AlphaLab (ie, exposure to Silicon Valley folk) are not really that important to us. Pittsburgh has a surprisingly strong tech and entrepreneurial community.

pclark3• 17 years ago

oh and hurrah: "As Innovation Works utilizes funds from the Commonwealth of Pennsylvania, each company receiving funding is expected to maintain a significant presence in Pennsylvania after the program"

thejash4• 17 years ago

Yep, that's the one downside. It's the price you pay for keeping significantly more equity (AlphaLab only takes 3%) in exchange for more funding ($25K).

Pittsburgh's a great place to do a startup though. It's a great city, and really cheap as cities go. Whatever money you have for starting up goes a lot farther than it would in some other places.

Brushfire• 17 years ago

Whatever money you have for starting up goes a lot farther than it would in some other places.

That depends entirely on your model. Sales in midwest/south can be problematic for startups becuase the communities they live in do not adapt to change as fast as the coasts. I found this out the hard way. In addition, if growth of your startup depends on building a community, its going to be harder to get the word out if you arent on the coasts.

The cost savings are true, and they are significant, but if you cant grow your service organically, and you cant sell to prospects easily, it wont really matter in the long run, because you'll get to spend all that saved cash in marketing.

dbul6• 17 years ago

It's only a downside if you think you need the connections. Other than that I fail to see the downside.

karjaluoto4• 17 years ago

It's nice to see more programs like these starting up, even if they do feel a little derivative of YC. They seem like good catalysts for cities that want to get new businesses operating in them.

The challenge, in my opinion, is that although they can be great for the communities, I think they come at a cost for entrepreneurs.

I've done a lot of things from a distance. After art school I moved away from the city to paint. I reasoned that doing so cut costs and that I could paint well anywhere. Years later I partnered in an interaction design firm in a small town employing a similar rationale. Most recently, we've been working on our startup from Vancouver, which is beautiful and a nice place to raise a family.

In each of these instances, the logic for being away from a center (be it art, design or startup) has been sound. Additionally, there are always strong proponents in these communities to keep people doing "great things close to home." No matter how strong the logic is though, it simply doesn't hold up. There are greater opportunities for those who put themselves at the heart of the "action".

You could likely start a great company in Pennsylvania, but even with low rent and more equity, you'd still have a weaker "deal". The appeal of YC, in my opinion, is that it's so close to where people think in startup-terms and is run by people who actually live in that world.

Although some will bemoan my saying so, the closer you can get to the action, the better. There are probably some great actors in Helsinki, but I bet you'll never hear anything about them.

dbul6• 17 years ago

Well unfortunately not everyone can get into YC or save up enough money to go move to the bay area to fund themselves while developing connections.

If Google had been started in Pittsburgh, they still would have been successful. I heard about Google through IRC back in the late 90s and immediately switched from Altavista because Google was so damn good.

Incidentally, AlphaLab is new, but Pittsburgh/PA has had seed funding through InnovationWorks and IdeaFoundry for some time. It used to be more like "here's $100,000 and you are on your own." AlphaLab is trying to develop a community. Again, I think it remains to be seen how these seed funding ventures turn out. Admitting SV is the only logical choice is premature. Give it time.

tjic• 17 years ago

> If Google had been started in Pittsburgh, they still would have been successful.

I'm not a huge Silicon Valley booster (I like MA, thankyouverymuch), but I think the idea that Google would have been able to hire as much top notch talent, as quickly as they did, in PA is nonsense.

The only way that Google could have started in PA and been as successful as they have been is if they very quickly moved to Silicon Valley (or - maybe - MA).

cool-RR• 17 years ago

"It's nice to see more programs like these starting up, even if they do feel a little derivative of YC."

I don't understand - Are you disappointed that these programs try to emulate YC?

karjaluoto4• 17 years ago

I'm not disappointed by it--in fact, I think it's a good thing. That being said, I don't think it hurts to acknowledge the source.

sr3d• 17 years ago

From their FAQ:

"14) Do we have to stay in Pittsburgh after the program ends?

Companies are expected to remain in Pittsburgh after the end of the AlphaLab program. Our goal is to help you build a successful technology company and to add to the critical mass of flourishing tech companies in the Pittsburgh region. We believe that Pittsburgh is a great place to build a company and after your experience at AlphaLab we are confident that you will agree."

Is this a legal agreement? It is still a bit surprising to me that you are still "expected" to tie down your company to a specific location. Maybe some ex-AlphaLab-er can shine in some light here.

thejash4• 17 years ago

Basically, if after signing the agreement and being part of the program, if your company decides that it needs to go somewhere else and have no presence in PA within the next few years, you have to give back the $25K. That's it.

It's not that bad if you think about it--if you get any later-stage funding, $25K is a small price to pay to allow you to move somewhere else.

okeumeni• 17 years ago

How about equity, do you get equity back too?

rjurney• 17 years ago

Self-enforcing. They're going to bat for you with early customers, later rounds of funding, etc. and if you don't display integrity you lose their connections and then some, I imagine.

edit: Oh, whoops! Not simply self-enforcing, as the other reply indicates. Still, I think it would be.

dustineichler• 17 years ago

alphalab looks pretty cool, hate that it's in pittsburgh but worth applying.

Apply to AlphaLab: $25K and 5mo free office space

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