The potential size of investment checks for startups selected into one of two accelerator programs from North Side-based Innovation Works Inc. have doubled as the region's largest seed-stage investor looks to better equip the companies it supports with much-needed capital.
Originally, startups that IW selected for its software-focused AlphaLab accelerator or its hardware-focused AlphaLab Gear accelerator received a $50,000 investment structured as a convertible note. IW also picked up a 2% common equity stake in the startup as a result of its investment in it.
But now, these startups will receive up to an additional $50,000 via a convertible note should they complete several milestones throughout their enrollment in the accelerator, milestones that IW will work closely with the startup on to ensure completion.
It brings the total possible investment award for these startups to $100,000, a figure that matches the investment amount offered to IW's life sciences-focused accelerator, AlphaLab Health, which is a venture it shares with Allegheny Health Network.
"We recognize the increasing costs associated with the early stages of building a software or hardware company and have increased our funding to provide additional runway for companies," IW said in a blog post. "These enhancements of our nationally ranked programs continue to give companies the investment, knowledge, community and network needed to succeed, but now in a way that is more flexible and responsive than ever before."
IW estimates it has invested more than $113 million across 600 companies since its formation in 1999.
