Northeastern University's IDEA hit a major milestone. The venture accelerator has awarded $500,000 in gap funding to 35 student- and alumni-founded startups, helping them pave a path to future success.
Over the past five years, IDEA's portfolio has grown to include 150 companies, 14 of which have "launched," or graduated, from the program. IDEA ventures have collectively raised $6.4 million in external funding, according to news@Northeastern, serving as proof the model is working.
Every two months, IDEA awards up to $10,000 in gap funding to qualified ventures. To be eligible, startups are required to go through a month-long review of their plans, milestones and capital needs. Ventures are allowed to reapply for funding after they receive a round but, by only granting smaller sums, IDEA is more effectively able to help startups hit specific milestones and better decipher when they need to pivot or reiterate.
Gap funding is only one resource IDEA provides ventures with, however. The accelerator also offers mentoring, networking opportunities and coaching from fellow students.
The program's strength is in the fact it's student-run. Hugh Courtney, dean of Northeastern's D'Amore-McKim School of Business, acknowledged at the organization's most recent Entrepreneurship Expo that "it's the student-run nature of IDEA that is the secret to its success."
Shivangi Shah, co-founder of genius.box, a startup delivering a monthly STEM-themed box to users' doors, agreed that IDEA has only been made stronger because it's student-run. "They'll do everything in their power to help you get to where you want to be," Shah said, referring to the students. "The fact that Northeastern has this kind of support system has been so helpful."
Over the years, Northeastern has attempted to create a more symbiotic relationship between what's being taught in the classroom to what's being offered outside of it. Northeastern's Center for Entrepreneurship Education has been gaining momentum, upping resources and helping students connect with the Entrepreneurs Club and IDEA, where they can gain the inspiration to launch a successful startup.
Although hitting the $500,000 gap funding mark was a major milestone, IDEA's CEO Max Kaye assured news@Northeastern this is just the beginning.
"We need to continue to do the things we are doing well," he said. "There is a lot of work always being done on the ground."
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