Dallas’ Impact Ventures is looking to take the lessons learned from the graduation of its first accelerator cohort and apply it an upcoming program in an effort to create a non-traditional pipeline of female and underrepresented founders.
“One of the things we really picked up on in the first cohort is startups don’t just need a blanket accelerator, they actually need tailored support specifically for their business,” Benjamin Vann, Impact Ventures founder and CEO told NTX Inno.
The local VC firms first cohort kicked off earlier this year and quickly had to adapt to changes in the market and daily life due to the pandemic. And as it accepts applications for its second cohort, Impact’s program is going virtual, using the crisis and the current social climate around racial injustice to position itself as an ecosystem for change.
“It’s like, how do we create an economy where the same access you have is the same access that I can’t have or the same opportunities that you’re afforded, everyone is afforded the same opportunities if they have the will, the intellect and the desire and passion to be great or be successful; that there aren’t barriers put in front of them that restrict their genius,” Vann said. “For us, it’s really around how do we shift our economy to where we really see this as an equal playing field.”
The two-month IV Accelerator program launches on Nov. 2 and runs through January, capping off with a demo day. Impact is looking for 10 to 15 companies each for its startup track, which focuses on idea-stage to prelaunch phase companies, and its growth track, which focuses on companies looking to increase revenue, employee count or capital. While the virtual format has allowed Impact to expand the geographical reach of the companies it accepts and the mentors in its network, Vann said this cohort with have an emphasis on local companies in the small business, high growth, tech and CPG areas.
Last cohort, saw more than 160 applicants from 22 different countries. The ones selected went on to raise more than $500,000, even during the pandemic, Vann said.
For this upcoming cohort, Impact has made a few changes to its operation. It is preparing to launch an integrated capital fund that will work in parallel with the accelerator with the ability to debt and equity fund individual businesses. The accelerator is also dividing its mentor network into teams, so startups will have between three and four dedicated mentors to help them with their specific needs and help them create achievable milestones to work towards. Part of the programming will also focus on navigating specific COVID-19 risks and addressing ways businesses can incorporate technology to minimize impact and loss.
“It’s almost like this is kind of a deal flow tool, but we’re curating that deal flow in a way that aligns with our investment thesis,” Vann said.
Vann said that the virtual model has helped Impact begin to achieve its growth plan of being able to accept companies outside of the North Texas region. He also said the current social conversation surrounding racial diversity, equity and inclusion has happened at a time when Impact is starting to hit its peak, positioning it as a driver for change in the tech and VC ecosystem.
Vann said that while recent protests have brought the conversation to the forefront of many peoples’ minds, the issues are deep seated and systemic, and long-term solutions are needed to address it. He said he sees Impact as a launch pad for closing the skills and racial wealth gap, adding some of its programming includes efforts to bring in underrepresented founders to create technology that can help fight injustice.
“Traditional VCs, they can’t [provide a whole ecosystem], they’re on a time clock, they’ve got a fund the fund has to invest in a certain amount of time… they’re restricted by their ability to intentionally build community like we can,” Vann said. “We’re taking our cultural experiences, which are focused on social justice, and we’re taking that lens and that context and saying, ‘How can we design solutions using technology to address these problems?’”
The deadline to apply for Impact Ventures IV Accelerator is Oct. 17. More information on how to apply can be found here.
