William Leonard
Hey everyone! Welcome back to the Atlanta Startup Podcast. It’s William Leonard here. And Melissa Pegus is our guest for today. She is now the Managing Director of TechStars Atlanta powered by JP Morgan. And throughout her career, she’s seen the spectrum of company building from being an operator of early-stage companies, seeing them through the exit, and even angel investing. She joins us today on a podcast to talk more about the current TechStars Atlanta program. How has Melissa how to know when your startup is ready for an accelerator? We’ll also talk about her transition from mentor to MD and much much more in this conversation today. So let’s jump right in. Critically before we dive into today’s episode, be sure to mark your calendars for Venture Atlanta later this month. The conference is happening here in Atlanta on October 19th – 20th at the Woodruff Arts Center and with Valor being a participating sponsor. I’ll be at many other conference festivities on the 19th at 5 pm. I’m excited to be judging startup battle Atlanta. So, if you’ll be at the conference, please drop me a note as I love to connect in person. Now back to today’s episode. Melissa, thank you so much for joining me today.
Melissa Pegus
Thanks so much for having me, William. I’m excited about today’s chat.
William Leonard
Likewise, I think we’re going to talk about a lot in this conversation. But first, let’s dive into the Melissa story. Tell us more about your background, your story, and what has brought you to where you are today.
Melissa Pegus
Absolutely. So when everyone asks me about my professional journey I start off and tell them that in the first part of my career, I spent about 15 years as a startup operator. I worked with nine startups over the course of that time throughout the various alphabet of institutional funding. So bootstrap pre-seed, seed, A, B, C, through exits. Of those nine startups, eight were acquired. I stayed with one of them through the acquisition, and then through the IPO and took all of those lessons and all of that learning and applied it to become an early-stage investor, first as an angel investor, and then I moved to Atlanta and joined the incredible team at Tech Square Ventures and focused on early-stage investing with them. I’ve spent the balance of my career as a startup operator in the commerce technology space. Today, I bring together the best of those experiences as a startup operator and as an early-stage investor to being a managing director here at TechStars. The only caveat I’ll make to that story is I think before all of that, it’s really important to mention that I was fortunate enough to be raised with a very diverse and international family and be raised by an incredible single mom. I think seeing entrepreneurship firsthand, seeing diversity and entrepreneurship, and seeing my mom’s grit and resilience are just as impactful. It has shaped my professional trajectory as much as any of my experiences working with startups or working in venture capital.
William Leonard
Those real-life experiences and upbringings really helped shape an individual. I hear a lot of stories like that from founders, how their upbringing really shaped and formed who they are today as an individual. That’s incredible. Tell us more about TechStars Atlanta, which is powered by JP Morgan. I’m sure that’s an exciting new development. Tell us more about the program and the types of startups that you’re going to be working with and supporting this summer.
Melissa Pegus
Absolutely. So through the accelerator and partnership with JP Morgan, first and foremost, we are focused on working with incredible entrepreneurs from all walks of life and specifically want to create opportunities for underrepresented founders. I’m very excited for our inaugural class to launch on Monday so the world can see just the most wonderful lineup of founders who are building the most amazing businesses and bringing the best products and technology to market. This roster of our first 12 startups is really special. Beyond the founders that we want to work with, we also have a thesis and an industry focus. We are investing in founders who are building the future of commerce technology, consumer brands, platform, and the creator economy technology, which we see as the democratization of commerce. The best way to think about that is any technology that helps to facilitate the transaction of goods and services between people, and then on the consumer goods and CPG side, really working with some incredible makers who have identified whitespace gaps in the market and their specific categories, and product categories are bringing incredible products to bear. Our inaugural class launches on Monday, September 12. Throughout the course of the program, we’ll work with them on accelerating their go-to-market and preparing to run a successful fundraising round and program.
William Leonard
That’s awesome. It sounds like you mentioned in your intro that you worked with a lot of commerce startups and now that’s where you’re going to be supportive throughout this cohort. Is that intentional?
Melissa Pegus
That’s very intentional. That’s what drove the thesis design. The idea is that we want to help founders in the areas where it’s aligned with our area of expertise where we can provide the most help, we can connect them with the best mentors, and we have a strong and codified investor network. And so while we can leverage TechStars’ incredible platform and network to help any founder and we have an incredible array of accelerators on our platform specifically for this accelerator that we’re running, I asked myself what the areas of unmatched fit that we can provide the best support to give our founders just the greatest shot that they have at being successful are?
William Leonard
Right. I know I’ve seen a lot of the TechStars programs as of late being hybrid, some even fully remote. What is this? What is the structure of TechStars Atlanta going to be?
Melissa Pegus
We’re running a hybrid program and what that means is the balance of the program is run virtually, but we have three or four occasions where we get together in person. We’re doing this for a few reasons. Certainly, we’re in a post-pandemic era and we know that we’re sensitive to everyone’s sort of requirements as we’re trying to navigate this new public health reality. Second of all, especially for underrepresented founders, we want them to work in the time and space that is best for them and their businesses. We know that not everyone has the extra funds to up and move to a new city or move their teams into a city where there may be to participate in the program. We wanted to provide the most equitable and inclusive format for programming and then it allows us to really create some special and dynamic experiences, both when we are in person, and then virtually, which also gives us the opportunity to introduce them to the global breadth and depth of our network without having to require those speakers and mentors to also be in person. We’re excited about the format. We think it’s going to work and it’s going to allow us to really create an unparalleled founder experience.
William Leonard
I can certainly agree with that. It sounds like now you’re gonna have founders, maybe from even all over the country now participating in this program.
Melissa Pegus
We’ve got founders from all over the country, from all over the world, participating in the program. We have incredible mentors and investors from all over the country and world but also specifically right here from Atlanta. I think it’s a great opportunity to not only work with local entrepreneurs and local founders, but as well as to showcase Atlanta on the world stage about what makes the city truly great for founders who are building specifically in our areas, and I think, hopefully, add to the vibrance and dynamism. That is our growing startup ecosystem.
William Leonard
I love it. I was reading a bit more about your background, and I think I saw you started out with TechStars as a mentor and you quickly evolved into this Managing Director role. What was the moment for you, Melissa, where you felt like this indie role was the right fit for you?
Melissa Pegus
Absolutely. As a startup operator, after I’d gone through so many experiences of growth, scale, and exits, there’s a lot that went well. But what I always tell people what was most impactful, and the gift that I have to offer to founders actually is all of the things that went wrong, right? So here are all the bumps along the road, all of the challenges, we didn’t initially predict what would happen, and the goal is to provide an easier path for founders who are following so they can learn from those experiences. That was what motivated me to make the change from a startup operator to an investor. And as you know, traditionally, as a venture capitalist, you make smart investments in your area of focus, but there’s not as much in-depth hands-on support during a period of time because you have a really broad portfolio to support. I thought there was a great opportunity to marry that operator experience to helping the portfolio grow, and then really apply all of my investor skills. Getting to learn more about Tech Stars and really validating that hypothesis that I had about being able to sort of bring together these two halves, these two passions of mine, seeing it, and practice talking to the founders feeling that excitement every time. I had to join a mentoring event that really solidified for me that this was the place that I wanted to be. Luckily, there was an opportunity that presented itself to just join this incredible, incredible team.
William Leonard
You’re right. It is an incredible team. TechStars Atlanta has a very positive and prominent sociation nationally with the program. I’m glad that you’re in the driver’s seat here, helping support, and helping these founders get the insight needed to grow and get to that next step of business growth. Kind of related to that point there, you’ve seen the spectrum of startup and operational life from acquisition, IPO working, I think you said eight startups and then angel investing as well. I think you’re the right person to ask this question. How does a startup know that they are ready to participate in an accelerator like TechStars?
Melissa Pegus
There are a lot of benefits that TechStars offers, right? The balance of the program, those 13 weeks, there’s a lot of focus on how we create the right structure and framework to help you scale. What do you think about achieving product-market fit, go-to-market acceleration, frameworks for building your team, and creating an investment strategy? I think all of that content, all that knowledge that we have is absolutely solid gold but I’d be remiss to say that I think if you did enough research online, you could probably, with a lot of effort and be very painful, but you could probably pull together a lot of that content that we have, right? The magic of TechStars is really in the network. Both through our mentors, our investors, the other founders who are going through programs with you, who are going through other programs at the same time, and the alumni really, it is the power of the network. When we talk about TechStars for life, it is about the network. When I think of founders who are the right fit to go through the accelerator, one is it’s always making sure that the timing works. You’re never too early to apply for the accelerator because you’ll always get feedback and learn about what you can adjust and it’s very competitive. We see people reapply on their second or third or even fourth time, it’s when they finally get in. But one, does the focus of the accelerator, does the thesis of the accelerator fit the area that you’re building in? Do the focus of the accelerant and the goals fit the stages of growth and those milestones that you’re currently working on for your business? And also, if you’ve identified gaps in your network from a fundraising perspective, hiring go-to-market from an operational perspective, that’s where I think it’s a really good fit. One of the questions I always ask founders when I interview them when they are onboarding into the accelerator is, what are you hoping to get out of the program? I think that that is really important. Every MD has a slightly different background and offers different things to the program. And ultimately, the most successful engagement is when you’re hyper-aware of what it is that you want to get out of the program and verbalize that make that known and make sure that expectations can be met, this is the focus, it’s what the cohort or your mentor network is going to look like. It’s hard to say it’s one size fits all but if you are looking for a partner in your growth, if you’re looking for a network, then that’s for me, what I would think of is sort of checking the box that, okay, moving forward if an accelerator is just going to be transformational for your business.
William Leonard
I think there are several factors you probably have to consider as a founder, and like you mentioned, one of the core takeaways from TechStars and being in this program is the network, right? The TechStars network is the gold. Thinking about this program being TechStars Atlanta, the corporate density, and the Fortune 500 density here in this city, how do you all plan to engage and really connect the corporates to this current cohort?
Melissa Pegus
I look at, specifically, the mentor roster that raised their hand and leaned in and said, “We really want to support these founders. We want to support the accelerator.” They hail from across the entire ecosystem of corporate partners, I would say, even our entrepreneur ecosystem. That is a really important way first that we think of engaging. And then secondarily, all of these corporate partners are potential buyers, suppliers, and partners for our startups as well. They are also making their lists on how they want to approach and engage but I always say, first and foremost we are a mentor-driven accelerator. I think this is the biggest and most meaningful way that we engage. Once we facilitate those connections and personal relationships, I think, organically, we’ll see the way that those relationships take shape. It’ll be even better than anything we could have envisioned. What’s really exciting is when we look back three or six months from now and see the impact that those relationships are having on Atlanta as a whole on our startups, and on the corporates who are constantly looking to startups to understand what does innovation look like and how can they embrace the startup ecosystem and innovation? I think there’s a lot of goodness and a lot of benefits all around.
William Leonard
It certainly sounds like and you mentioned, this is a truly mentor-driven network. Your experience as TechStars mentor, talk to us more about that, and what was that like for you to be this early value add to startups?
Melissa Pegus
Being a TechStars mentor, as much as you leverage your talents and your experiences to help startups, I think you walk away from that experience learning so much. Whether you’re learning about a new issue that a startup has identified and solving a new approach to technology, or a new approach to the market, it’s an opportunity for you to learn as well. I love learning new things. I love constantly expanding my view of the world. That has always been really exciting but there are a number of ways that you can support startups, right? Sometimes it was giving them feedback on a pitch, helping them clarify their value proposition, helping them work through go-to-market challenges enterprise engagement, or very honestly, I think some of the biggest impacts you can have is just being a shoulder to lean on and an ear to listen to because being a founder is really hard. I have an incredible, incredible executive coach and one of the things that he said to me always stuck with me is if you want to go fast, you go alone. If you want to go far, you go together. I think that’s really what it is. It’s that transformational effect of community building.
William Leonard
I agree community building is core to one, finding this other cohort of founders who can support you, on this journey. I hear all the time, being a startup founder, is one of the loneliest things on earth that you can do. Community is important to find as well. Looking forward to the rest of 2022, I think there’s a Demo Day coming up in December, tell us more about this program and what you’re most looking forward to. And then also maybe, within that, elaborate more on your core vision for the program as the managing director.
Melissa Pegus
Our demo day will formally be on December 8 and we’re trying to create a few different opportunities, especially for the investor ecosystem to engage with our startups. We’ll do one on December 8, we’re working out the details for that. We’ll do another one in February, collectively with the other JPMorgan-affiliated accelerator programs also running across the US with Tech Stars. That’ll be quite exciting. The goal for demo day, once we get to that point is, as all startups joined the cohort, we sort of did an assessment, a snapshot in time of where they are, areas of strength, and areas where we could make some improvements. What we’re hoping is through the curriculum and content that we run through the program, we’ll see some incredible transformation in the business and the health of the business. I think also in the founders themselves, that they’ll have been given some fresh perspectives and some new lenses to look at what the future holds for their startups and ultimately, making sure that we’re connecting them with all the right people and investors that ultimately you’re going to continue to support them on their journey. The vision for TechStars Atlanta powered by JP Morgan is, I think first, to be a rising tide in the ecosystem. There are a very small number of slots in the program relative to the volume of applications that we get. Even through that, we try to do a ton of thought leadership and programming aimed at the overall entrepreneurial community entrepreneurial ecosystem. We want to make sure that we are a fountain of knowledge for those who are building and that we always aim to provide value as we engage with the ecosystem as well as through the program. We want to make sure that founders who are building in our quarry areas know that we’re here as a resource to help them. And ultimately, we hope we can help founders be successful because more opportunities for entrepreneurship, begets more entrepreneurship. Entrepreneurs are successful, they grow their companies, they help these exits, and they become that next wave of angel investors that invest in the next wave of entrepreneurs. The overall goal is to help accelerate the growth of these startups, create opportunities for more entrepreneurs, create more employment opportunities for more individuals who are interested in working with our startups, and overall, just elevate Atlanta, elevate commerce, consumer, and the creator economy, and elevate our founders overall.
William Leonard
I love how you break that down from multiple perspectives of how this program is going to be a value add to the founders, the community, and the network, and then there’s this pay it forward mentality as you continue to grow and scale the program. I love that and going forward, are there deadlines for new cohorts that should be announced?
Melissa Pegus
I’m so happy that you asked. Applications are open. In fact, they opened on the 29th for the next class that will launch in February of 2023. Applications are open through November 30. However, we do review applications and accept startups into the program on a rolling basis. We encourage people to get started on their applications sooner rather than later. I’m sure I can share the application link with you. We also make office hours available during the application period as well so that way, we can make sure we’re answering any founder questions they might have about the program and about their startup. Our ethos is very much to give first. We want to be a resource to our founders, not only as they’re thinking about the program, but also if there are areas that we can help them with on their journey. We don’t have to wait until the program delivers value. We’re excited to meet the next class of founders and we’re excited to spread the word about these new spots we have open in the next class. We saw a lot of demand and we’re really grateful for the demand. We’re hoping that we can create even more spots for founders who want to have us join them on their journey.
William Leonard
Applications are open now for all of our early-stage founders who are listening and may close on November 30. The next cohort is launching in February of 2023. That’s great information for our listeners who are oftentimes early-stage companies, not only in Georgia, the South, but really throughout the country as well.
Melissa Pegus
We have applicants from all over the world and from all over the country. The founders who are in the program hail from all over the country and all over the world. You don’t have to be in Atlanta to apply. I always tell founders, you’re never too early to apply for our accelerator, either. If you take the time to apply, we’re grateful for that. We respect that and we take the time to give you feedback, as well on your pitch deck your application, and the like.
William Leonard
Good. I love that. Well, with that, Melissa, this was such a fascinating conversation to learn more about your background, your upbringing, and then your early career experiences. Really seeing that the entire spectrum of a company’s lifecycle from early stage to IPO to acquisition. I’m really excited about you being here in Atlanta as the MD and really pushing this program. I’m excited about the demo day that’s coming up in December and the program that we’ll be launching again in February. I really appreciate your time, your effort, and your energy here today, Melissa. Thank you so much for joining me.
Melissa Pegus
Thanks so much for having me, William.
William Leonard
Cheers. Take care.
Lisa Calhoun
We’re thrilled to have you as an Atlanta Startup Podcast listener to help you get the most out of the experience. Let me invite you to three insider opportunities from our host Valor Ventures. First, want to be a guest on this amazing show. Reach out to our booking team at atlantastartuppodcast.com. Click on booking, It’s a no-brainer from there. Are you raising a seed round? Valor definitely wants to hear from you. Share your startup story at valor.vc/pitch. Are you a woman or minority-led startup valor sister program? The Startup Runway Foundation gives away grants to promising startups led by underrepresented founders. The mission of the Startup Runway Foundation is connecting underrepresented founders to their first investors. Startup runway finalists have raised over $40 million. See if you qualify for one of these amazing grants at startuprunway.org. You can also sign up for our next showcase for free there. Let me let you go today with a shout-out to Startup Runway presenting sponsor Cox Enterprises and to our founding partners, American Family Institute, Truist, Georgia Power, Avanta Ventures, and Innovators Legal. These great organizations make Startup Runway possible. Thanks for listening today and see you back next week.
