Myron Rivers founded Lerch in 2020 after he lost his job due to Covid-related cost-cutting measures. Now his 2-year-old Cincinnati startup has landed a spot in the prestigious Techstars accelerator – with plans to use the program to facilitate growth.
Lerch, a mobile event app that combines order-ahead technology with venue GPS, is one of 12 companies participating in Techstars Tulsa. Startups in the program participate in an intensive, 13-week program, with hands-on mentorship and programming. Techstars also offers up to $120,000 in funding.
It’s the first time the accelerator has offered a program in Tulsa. Organizers said they’re aiming to build off the legacy of historic Black Wall Street.
It’s also the first Techstars cohort entirely comprised of companies led by underrepresented founders.
Rivers told me that element, coupled with the fact Techstars is considered one of the country’s most notable accelerators, makes Lerch’s participation more noteworthy.
The program is currently underway and culminates with a demo day showcase Nov. 3.
“Being an entrepreneur of color is lonely — but being an entrepreneur of color in tech is even lonelier. It’s nice to be around others who are experiencing the same things you are,” he said. “For Lerch, as a new company, having the Techstars validation is going to be important for our growth and development. It’s exactly what we need to prop us up and get us that much closer to being an everyday name.”
Rivers, a former Business Courier “Forty Under 40” honoree and Leadership Cincinnati graduate, launched Lerch in June 2020; the company was featured as a Cincy Inno “Startup to Watch" this December.
Essentially, it’s a dream mashup for merchants: it’s part Waze (the wayfinding feature offers turn-by-turn directions to your seat, or, if needed, the nearest bathroom) and part Starbucks (users can pre-order food and beverages).
The idea is to modernize the live event experience amid a “right-now economy.”
“People spent two years indoors looking at Netflix. They can watch what they want to watch, pause when they want to pause and snack whenever they want to snack. They don’t have to wait for anything,” Rivers said. “When people have an opportunity to go out, you can’t give them the same experience. People are going to expect more. This is a really easy way to deliver that.”
While consumer minded, Lerch is increasingly selling itself to venues and restaurants. Ideal targets include music and outdoor festivals, theaters, stadiums, bars or breweries. Essentially “anywhere there’s a line,” he said. Lerch, to date, has partnered with the Cincinnati USA Regional Chamber, Asian Foodfest, the Midwest Black Family Reunion and MadTree Brewing.
Rivers said customers who use the app spend 20% more – they’ll visit concessions more frequently, for example, because they don’t have to stand in line.
On the data side, the company can give organizers insight as to what customers want and how they spend their time and money – both inside and outside of the facility.
Rivers said he plans to use the experience to fuel a $3million to $4 million seed fundraise this winter. So far, Lerch has raised $500,000 with backing from Cincinnati-based Formidable Asset Management and Main Street Ventures.
Now that Lerch has built out its MVP, or minimum viable product, used to test its initial idea, the company is picking up steam, he said.
The Techstars connection “will help us grow faster, with greater stability and fewer mistakes,” he said.
Founded in 2006, Techstars has invested in more than 2,500 companies with a combined market cap of more than $200 billion.
“We’re in the process of creating replicable procedures,” Rivers said. “We have test cases. We’re talking to a lot of folks down in the Tulsa area, but we’re also picking up traction in Houston, Austin, Atlanta and L.A.”
Lerch is the second Cincinnati company to land in Techstars in the last two years.
The region has only had a handful of participants take part in the national accelerator: TinnCann, a tech startup that enables 1-on-1 video chats with athletes and experts in fashion, photography, music and more, participated in Techstars Chicago last fall. Downtown’s Spatial.ai, a social data company, and Kandid.ly are 2016 Techstars alum, while Cincinnati-born fintech SoLo Funds participated in the 2018 Kansas City cohort. Kandid.ly, now Candidly, has since moved to Austin, while SoLo, a peer-to-peer lending platform, moved its headquarters to Los Angeles in 2019.
Rivers has no plans of moving Lerch out of Cincinnati – at least not yet. He did say the traction he’s gained in Tulsa has “already exceeded” the traction he’s received in Cincinnati. That puts a question mark on the company’s future home.
Amplicore founder Chia-Ying "James" Lin sounded a similar alarm bell as the company made plans for a $30 million Series A fundraise earlier this year. A lack of local investor support means increased pressure from outside funders to relocate.
“I love Cincinnati, but I have to be true to my business, and we’ll go where the opportunity is,” Rivers said. “My hope (with this) is we can do a better job of convincing Cincinnati to give us a shot, because other cities are seeing the value.”
