Quietly, a group from Texas is scouting for startups during Triangle Startup Week April 18-20 in Raleigh and Durham – looking for the next big idea in health care.
Texas-based Techstars Physical Health Fort Worth Accelerator is looking for startups for its three-month program. Managing Director Trey Bowles said he’s looking for creative innovators solving problems in the physical health space – from rehabilitation technologies to non-pharma solutions for chronic pain.
Techstars has found those ideas in the region before. Its portfolio includes Boomroom, launched by then UNC-Chapel Hill student Anna Shuford as a virtual workout platform in 2021.
Bowles said the Triangle is the perfect place to seek out health care startups. Techstars has 54 programs, three specifically focused on health. But 20 of its accelerators include health care companies.
Bowles said the plan is to highlight Techstars in general while seeking out contenders for the accelerator program, which requires companies to be in Texas for three months (though some Techstars programs are remote or hybrid).
Techstars also offers funding for its portfolio firms.
The program invests up to $100,000 via an optional convertible note. It also issues $20,000 stipends in exchange for 6 percent stakes in companies – a deal that has more to do with the value of Techstar’s network than what those numbers may imply in terms of a startup’s valuation, Bowles said. The 6 percent stake pays for the “value of the network for the entire life of your business.”
After the three-month program is over, Techstars’ team of ongoing portfolio management services continues to support firms in the network, Bowles said. The theory is that Techstar’s wide portfolio of companies and supporters can shrink that “six-month process to get in the door to a phone call.”
“Really what you’re adding is a new co-founder, but the co-founder isn’t one person,” he said. “It’s a network of people there to help you succeed and grow. It’s a pretty incredible set of resources.”
But it’s not for everyone.
Triangle Inno inquired about what questions founders should ask before applying to an accelerator – Techstars or otherwise.
“The first question is, do you want to be part of an accelerator?” Bowles said. “One of the things we really, really see as a major problem that people have is they’re not coachable. They say they want help, but they’re not willing to listen.”
Bowles said a lot of founders incorrectly think they are “too far along for an accelerator.” But he said that doesn’t take into account the value of relationships that are built through the program. Unless a startup is generating substantial revenue or is at a Series A round, they may want to rethink that sentiment, he said.
That’s particularly true in an environment like the one entrepreneurs face in 2023, where what many have labeled as a “market correction” has caused valuations to drop. Multiple founders have said they’ve faced challenges to raising capital. Some have said they’re looking for creative solutions in 2023, such as non-dilutive grants and other programs. Bowles said an accelerator might just be one of those creative solutions.
Techstars is hosting a local event Friday.