AOL co-founder and Revolution CEO Steve Case likes to give money to promising startups. For the third year in a row, Case offered an extra bit of cash to the participants in the Google for Entrepreneurs Demo Day. Each startup that can raise $1 million in the hundred days after the event will get an extra $100,000 out of his pocket.
That's a potential $1.1 million total if all eleven companies succeed. As being a participant in the event requires working on raising money anyway, Case could end up writing all of those checks. It's the first time he's set up the money this way. Two years ago he simply gave each participating company $100,000 each and in 2015 did the same to the four companies headed by women. So, why this method this year? We asked Case about that and the broader topic.
Here's what Steve Case had to say:
DC Inno: Were there any startups in particular that stood out as likely to meet the challenge and get the extra $100,000? Would you or Revolution be interested in being part of those conditional rounds?
Steve Case: I was impressed by all of the companies that were pitching as it demonstrates that great founders are everywhere, not just in Silicon Valley, Boston, or New York. Now it’s up to the communities to rally around these talented innovators, and help them raise money as they to build companies and create jobs in places like Minneapolis and Durham. It’s too early to say whether our institutional funds – Revolution Ventures or Revolution Growth – will back these companies down the road, but we will be keeping our eye on these companies as they progress.
DC Inno: The geography of the Rise of the Rest aside, is there a rise of particular industries you see represented in the list, i.e. health or fashion?
Case: This year there were multiple healthcare and education focused startups that participated and I think that is an accurate reflection of the type of real world sectors that will be disrupted in the Third Wave by entrepreneurs. Indeed, the winner, Players Health, from Minneapolis, is focused on the health of athletes, a big problem due to the growth of youth sports and the growing concern about concussions and other risks.
DC Inno: How and why did you decide this particular version of the incentive? Do you know what (if any) method you'll use next year for deciding additional funding?
Case: One of the criteria for participating in Google Demo Day is that the companies are actively raising a Series A round between $1 – 4 million, so I wanted to support them in a way that would help them reach that goal. My hope is that the Rise Of The Rest Challenge will enable them to rally other investors for a speedy close. As for future Google Demo Days, I will make that determination on the fly, based on the quality of the startups pitching.
