A Chicago startup has been named to one of Amazon's coveted accelerators.
Stigma, a mental health app that was a semifinalist in this year's Inno Madness competition, is one of the 20 startups selected for the Amazon Web Services (AWS) Impact Accelerator for Latino founders — a technical, business and mentorship program that helps startups advance their tech solutions and accelerate growth.
The program is part of a $30 million commitment by the tech giant to provide underrepresented founders with the resources, capital and community they need "to level" the startup playing field.
With startup cash harder to come by and VC deals still down, Ariana Alejandra Vargas, founder of Stigma, thinks that accelerators can help entrepreneurs — especially underrepresented founders — find alternative startup capital to help grow their businesses.
"For underrepresented founders who don't come from a background where they are set up for success, you need more than one chance. You need to know what kinds of accelerators or opportunities exist to keep things going," she told Chicago Inno.
The Amazon accelerator includes a $125,000 non-diluted grant at a moment when raising $125,000 with good terms is "challenging," Vargas said.
Tapping into AWS
Throughout the Amazon program, startups will receive up to $225,000 in non-equity cash as well as AWS credits and access to AWS leaders and teams. The eight-week program also pairs each startup with mentors and technical experts who will advise them on AWS.
While Stigma started as a web app and then moved to a mobile app, which Vargas described as a "low-code solution to bring it to life," the company's plan was always to shift its infrastructure and build its app from the ground up to be hosted somewhere.
"We feel a lot of confidence hosting it on AWS," she said.
She said that being able to tap into AWS' team will be a big boost as they build the platform out further. She added that she's also excited about Amazon's recent investments in artificial intelligence and what the emerging tech can do for mental health companies.
"If there was ever a time to make a switch to AWS, now's the time," she said.
Named Google's Best App for Good at the end of 2022, Stigma was selected from a field of more than 1,100 submissions.
Vargas said she wouldn't have heard about the program if it wasn't for Chicago's growing tech ecosystem.
"We're all helping each other out. We're flagging stuff for one another, even when it's competitive," she said. "There are people I've told about accelerators that have gotten it when I didn't and vice versa."
Vargas also credited participating in the TechStars Chicago accelerator with helping her perfect her 90-second pitch for its demo day, which made the submission process to Amazon's program much easier.
