William Leonard
On this episode of the Atlanta Startup Podcast, you take time to understand the inner workings of Startup Runway. Join us as Mecca Tartt, the program’s Executive Director provides valuable insights and helps us unpack Startup Runway’s Core Mission of providing grant funding to underrepresented founders at the PreSeed Stage. In this conversation, we’ll learn about the specific criteria for founder participation and highlight the meeting milestones that Startup Runway has already achieved, including awarding over $350,000 in grant funding to underrepresented founders. Additionally, we’ll explore the opportunities for future sponsors to join existing partners such as Cox, PIN, Innovators Legal, and others in supporting and underwriting Startup Runway. Mecca, thank you for joining me today.
Mecca Tartt
Thank you so much for having me, William. I’m happy to be here today.
William Leonard
Of course. Today’s conversation is really around what Startup Runway is and how it has seen so much momentum since you assumed the role of Executive Director a couple of years ago. We’re gonna dive into that momentum and also talk about some of the upcoming events that Startup Runway has on its calendar for the rest of 2023. So let’s level set for our audience who may not be familiar with Startup Runway. I’ll have you tell us a little bit more about the program and then we’ll dive a bit deeper.
Mecca Tartt
Absolutely. We have had a lot of growth today and Startup Runway is the leading nonprofit that connects female founders and founders of color to investors as well as directly to capital.
William Leonard
Awesome. We talked about this capital here and typically associated with startups is dilutive capital, where investors, VCs, and accelerators are taking equity in startups at this early stage. But, Startup Runway is a bit different than that. This is grant funding that you’re providing to startups. Can you talk a little bit more about the grant funding and really what that entails for the winners of Startup Runway?
Mecca Tartt
Sure. So the way in which we connect those founders, those pre-seed founders, to investors and directly to capitals through our showcases, which I’m so proud to share that we just finished celebrating our 20th Startup Runway showcase and it was absolutely phenomenal with standing room only, and such a great event. But for us, we’re looking for founders that are companies with an MVP, they have a few customers, and they’re not just an idea. So if they’re at the idea stage, well, then those are companies I would say there’s this incubator or accelerator that’s in the southeast that you will be a good fit for in order for them to really have more of that refining that process to help them along the way. Because when they come to us, they are ready to pitch, they have their products, they have their platform already built, and they’re ready to get on the main stage to pitch in front of these investors.
William Leonard
It sounds like pre-seed is really the true definition of company maturity that Startup Runway is looking for. We’ve got 10 finalists, three winners, each showcase. So tell us about the three winners, what you get the type of capital in grant funding that they’re receiving, and who’s the capital coming from?
Mecca Tartt
Sure. So all great questions. So first, there are three different grants that we award that are nondilutive capital. We have our Judges’ Choice award that is coming directly from American Family Insurance. American Family has invested in Startup Runway since the inception of the organization because they believe in the work that we’re doing to invest in women and founders of color. That amount is $10,000. Specifically, we have our judges panel, and they decide on the company they deem as most investable. And so that’s one specific grant that we give out during the showcase. The second one is the Audience Choice Award, which is sponsored by Cox. They have also been a company that has supported us and has underwritten several grants since our inception. And that comes directly from the audience. The audience votes on who they believe is most investable, or the company that they liked the most obviously. And so it’s always exciting to see just the crowd reaction, engagement, and excitement for the founders there. And then last but not least, it’s something that we launched most recently over the past few years, the Women’s Empowerment Grant. If you look at any of the statistics out there, you’ll see that so many stats show that women are still underfunded when it comes to receiving capital for their companies for their startups and the numbers are still under 3% when we talk about investing in women. For us, it’s very special being founded by a woman by the name of Lisa Calhoun. It’s very important that we also give back and we are very purposeful in creating something just for women. That’s also a $10,000 grant. We get about a total of $30,000 during each of our showcases.
William Leonard
I love it. And you’re right. This all started with the vision that Lisa had years ago when she saw the discrepancies and the lack of resources that underrepresented founders faced at the early stages of company building. When you think about the first Startup Runway showcase at The Gathering Spot to the most recent one that we had at the Russell Center for Innovation, it was just an amazing experience here. The room was packed, standing room only. I want to give a special shout-out to our judges who came and participated; Charles Robinson, Managing Partner at 1888 Ventures, Stefanie Diaz, Head Of Industry, Discovery, and Venture Capital At Catalyst By Wellstar, Rachel Wilson, who is the Principal at Collab Capital, and then myself who all served on that panel, and dished out $10,000 to the most investable company and you kind of talk about some of the criteria and I’ll give some context on the VC judges lens. When you say most investable, I think there are several variables that go into how we assess who is most investable. I think it’s one relative to traction relative to how big the opportunity can get from a scale perspective. Can this startup idea, potentially generate a venture-scale outcome? So it’s really looking at those factors and other factors as well as we really think about what is the most investable company. And then also in the room at the last showcase, we had representation from the ATDC, Robert Daniel was there, Brian Zwerner from W3 Studio and then we also had the mayor-appointed tech leader of Atlanta, Donnie Beamer in the building. So these showcases are not just filled with investors and ecosystem stakeholders, but it’s filled with everybody who has an interest in startups and wants to see these companies do well. Mecca, as we kind of round out the conversation here, Startup Runway has been around for how many years exactly now?
Mecca Tartt
Startup Runway was launched in 2016. And so it’s been around for quite some time, it’s been leading the way with startups. I would say, a lot of startups in the southeast look for funding that comes directly from Startup Runway, because there are a lot of resources out there. I say that there are a lot of resources, a lot of incubators, and a lot of accelerators, but at the end of the day, when you talk to a lot of founders, they are still very much in need of funding. They need the funding to help run their organization. I mean, the first Startup Runway showcase in 2016, the grand prize was $5000. Now we’re talking about $30,000 and that’s given out several times throughout the year. We typically have anywhere between four to five showcases throughout the year. And so it’s a tremendous impact and imprint that we’re making within the startup community.
William Leonard
100%. We just had a showcase back in the first week of May 2023. As we record this episode now, it’s early June 2023, when is the next showcase and what is the calendar showcase for the rest of 2023 look like? How can founders apply and find out if they qualify for each upcoming showcase?
Mecca Tartt
Absolutely. The next showcase that we have coming up is going to be on June 22 and that is our Startup Runway Savannah showcase which is actually being supported and sponsored by the state of Georgia, the Partnership For Inclusive Innovation. They have supported Startup Runway, we are one of the recipients of their big grant. We’re very proud and they are very supportive of the work that we’re doing in order to ensure that outside of the city of Atlanta, those other cities are also getting the same opportunities and the same access. We’re excited about having our first Startup Runway Savannah showcase and it’s also being supported by Georgia Power as well. We’re very thankful that they are underwriting the grant for that particular showcase to really sow seed into the Savannah community. We have that on June 22nd and we’re really excited. Founders can apply at startuprunway.org. And Will, you mentioned something really important because I always get emails and questions and you know, I have founders that walk up to me and they’re like, is this something that I can apply for? And again, if a company has an MVP, and you have a few customers on your belt, that makes you most competitive. Also, business models that do qualify for our investor introduction platform are going to be all software, all apps, games, medical devices, healthcare innovations, all software-enabled services, and all new technology in any sector. If that’s your realm of what you have created, with your startup, you will absolutely be a candidate that we will be interested in having a part of one of our upcoming cohorts.
William Leonard
I think that one thing that makes Startup Runway so special and so meaningful for the founders that we support is that we build up this list of 10 finalists, and then we try and find VC judges who invest in those specific verticals, to come, judge, give feedback, and be a true resource for the founders that are pitching. In the last cohort in May, we had a lot of retail-focused startups and we had some retail-focused investors on the panel as well. So we do a great job of being intentionally deliberate about how we like to assemble a panel of judges. June 22, is the next show that is Startup Runway Savannah. We have Startup Runway Athens already this year. What’s happening in August and beyond, as we sort of think about Startup Runway’s calendar?
Mecca Tartt
Absolutely. I did not mention this so I want to provide a little bit of clarity, the one that’s coming up the Startup Runway Savannah showcase is specifically for startups that are based in Savannah and the immediate surrounding cities. So you can apply for that if you also fit into that criteria as well. But if you don’t, and you are a founder in the southeast that is interested in pitching up the upcoming Startup Runway showcase, I would highly recommend that you go on ahead and apply because it’s already on the website but I would highly recommend that you apply for one of our other upcoming showcases. The next one is September 14. Applications are live now, you can apply. And the one after that is our VC day, our Startup Runway showcase. It’s our final showcase of the year. It’s amazing, obviously. Will, you were there, you saw the energy. It’s going to be at the same exact location on December 7. We have startups that really apply and they position themselves from all over the Southeast. In the last showcase that we had in May, the majority of our founders were actually outside of Georgia that flew in for the event. It’s a wonderful opportunity, especially I find for certain cities outside of Georgia and outside of Atlanta, that do not have the same exposure and do not have the same access to investors, they get that when they are a part of the Startup Runway showcase. It’s been beautiful to see so many startups come through our program and be extremely successful, where one introduction leads to another major opportunity for them.
William Leonard
That’s such a great point because there’s no promise of startup success. Most startups die and fail at the early stage but we have seen some great successes of companies that win Startup Runway and go on to raise pre-seed and seed-stage funding from VCs. I think a really great example of that is Rella. Natalie, she was at the 14th showcase. Natalie won that showcase and she’s building software for the creative economy. She raised over a $1 million pre-seed round from Precursor Ventures, Hustle Fund, and other VCs. I want to give a shout-out to another startup that won that 13th showcase, Acta Solutions. They’re building in the gov tech space in Chapel Hill, North Carolina. They have grown tremendously and dynamically built their product offering. So just two examples of many startups that have gone on to win Startup Runway, and then go on to either raise capital or continue to grow organically as they think about the next vector of maturity in the startup lifecycle.
Mecca Tartt
One thing I’ll add to that, Will, I say this all the time to the founders when they’re going through the interviewing process and when they’re accepted as finalists, is just because you do not win the actual showcase, because we have three winners, does not mean that you’re not a winner. The reason why I say that is because I’ve seen so many of our founders also pitch on that stage and they walk away with an investor that says, hey, I want to invest in your company. They walk away with context that they never would have had. It’s about getting the right founders, these top pre-seed founders that would not normally have access to this many VCs at one point in time, or this many angels in the room, and now they have the access.
William Leonard
That’s right. The platform is so meaningful and so game-changing for these founders. Mecca, I want you to talk a bit more about how much capital over the lifetime of Startup Runway has been dispersed to the founders because you talked about back in 2016, the first check for the first winner was $5,000. Now, it’s $30,000 and going to be more in the future as we continue to grow and get more sponsors. So tell us about the total amount of capital that’s been dispersed.
Mecca Tartt
Absolutely. Startup Runway has dispersed over $385,000 in nondilutive capital to founders. I want everyone that’s listening to understand just the impact of that because we’re talking about founders that are typically not seen, that do not have the opportunity to get in front of investors, that do not have the opportunity to get and access to capital to invest in their businesses. It is shining a light on startups that are likely a lot of times not seen. And if they are seen, then there’s still a disparity and there’s still a funding gap that still exists. Yes, they may have access to tools. That’s a lot of feedback that the founders just having a real conversation. A lot of the founders share with me, they have a lot of access to tools and resources, but outside of that they still need funding. It takes funding. That is the one biggest differentiator when I talk about Startup Runway, what makes us so different than anything else that’s out there, and what’s been provided to startups, specifically women and founders of color is that access to capital.
William Leonard
You’re right. I hear it all the time from Ryan Wilson, CEO of The Gathering Spot, and Shila Burney of Zayn Venture Fund, underrepresented founders are often over-mentored and underfunded. I think that that statement is so powerful. Unfortunately, very true but I think it’s little shifts in a dynamic and the status quo of unlocking doors in access to capital. And as you said, you may not win the grant, and you may not get that $10,000, but there could be a relationship in the room that you meet, that could be $50,000 or $100,000 in value for your business. We’re excited about Startup Runway, the founders that we’ve worked with historically and that we will work with in the future, I’m excited to continue to partner with and grow this thing and to grow Startup Runway. Grant funding is needed from sponsors. Tell us a little bit more about how sponsors can be meaningful and how they can interact with the Startup Runway in the most efficient way possible.
Mecca Tartt
Absolutely. I’m so very thankful because we as a 501(c)(3) could not do the work that we do without the support and funding of companies, angels, and investors that believe in investing and leveling the playing field for women and for founders of color. The Partnership For Inclusive Innovation and the state of Georgia are invested in the work that we’re doing along with American Family Institute and Georgia Power, Innovators Legal, Unqork, Valor, and LeaseQuery, and as I said, Cox has been partnering and sponsoring this for such a long time along with Avanta Ventures. We are able to truly do the work day in and day out that we do to move this needle forward because of their belief and their investment in Startup Runway. It is impossible to do it without their support. We talk about those numbers of over $385,000 in nondilutive capital being dispersed to founders that are underrepresented. It’s because of the sponsorship of those companies saying, hey, this is something that we believe in. This is a pillar within our organic nation and we believe in this as a give-back. They rely on us to be able to source those founders, essentially. For companies that do have that as a pillar that is invested in ensuring that the capital gets directly to those specific groups, they are able to find a way to say, we want to be a part of this. We want to be active with Startup Runway. We want to attend the showcases. We want our corporate executives to have the opportunity to mentor the founders. We understand that these corporate executives have very busy schedules so the mentoring session always takes place an hour before the showcase and it is one of the most valuable components for our founders at the showcase. When they give their feedback, they always say the mentoring session was invaluable for them, because it just provides them with the opportunity to get those resources, get that knowledge that again, they would not have access to. We have so many executives, so many corporate leaders, and so many successful founders that do give back in their time, an hour before the showcase launches. They really sow into these founders, and a lot of times it’s additional contacts. That’s the beauty of it, too, is sitting at those mock board meetings is what we call them during that mentoring session. They sit down and they talk about their biggest business challenge. There might be an investor or a corporate executive that says, hey, this is how you should look at this as far as hiring, and marketing, and here are some resources for you. Here’s a direct contact.
William Leonard
That’s right. That is the feedback that I always get from founders is that the mentoring session is so powerful because you get oftentimes executives and/or entrepreneurs who have already successfully built a company, giving you feedback on how to see around corners. That’s like a free game right there. I mean, you get that and that is almost as valuable as capital sometimes. Mecca, this has been a really interesting conversation. I am thankful that you are leading Startup Runway and the work that you have done in this community has been amazing. We are excited about what’s going to happen, what’s on the horizon for Startup Runway, and more funding dollars for Startup Runway to be able to fund more founders. That’s what this is all about. Mecca, really appreciate your time this afternoon. Founders if you’re listening, you want to apply to the next showcase https://startuprunway.org/. That’s it. Go check it out. You can find out the dates for the next showcases and let’s keep the momentum going.
Mecca Tartt
Thank you, Will.
William Leonard
Awesome! 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.
