After reading through a few hundred DreamIt applications this weekend it occurred to me that there was a fairly simple and repetitive process I went through while reviewing the applications – and that my approach might provide some valuable insight to those applying to DreamIt or programs like DreamIt.
My approach may be different then that of my partners at DreamIt and may be very different from the approach taken by the folks at YCombinator or TechStars. Nevertheless, I think having insight into one decision makers thought process would be helpful (or potentially scary).
Let me also share that when you have hours, not days, to run through hundreds of applications your first pass lasts no longer than a couple of minutes.
So…what do I do?
The first thing I look at is the first couple of sentences of the idea. This typically allows me to mentally categorize this into one of 4 categories: (1) Not a fit at all for DreamIt (someone opening a restaurant), (2) this doesn’t look unique or scalable (we are creating an online social network for {fill in the blank}), (3) this looks unique and interesting but I don’t quite grasp it in a few seconds or (4) Wow! I get it and it sounds cool. Probably one in ten hit category 1, maybe one in twenty hit category 4 and the rest are somewhere in between.
For all of those but the Category 1 I next jump down to the people. For those that are in Category 2, I am looking for a reason to justify keeping the application alive. Suppose I see an idea that I think is good but on first pass does not look unique. Suppose further that I see 3 or 4 really strong people listed in the application. Great backgrounds, great schools, prior successes. In this case I will most likely go back to the idea and try to figure out what they see that I don’t. So a great team keeps the ball in play and may allow the application to get to my next stage. On the other hand, if I see an application submitted by one person or two with little or no relevant background that application gets moved into the “no” pile.
For a Category 3 application (looks interesting but I don’t quite get it) I’m again looking at the people to guide me. A good team will most likely allow them to at least get to the next stage. I’m going to err on the side of assuming that even if I don’t get the idea after my first quick read – there might be gem in there somewhere…I just need to uncover it. A one person team or a 2 or 3 person team with no relevant experience will most likely cause me to read the idea one more time just to make sure before I’m not missing something good before I move it to the “no” pile.
For Category 4 applications and those from Category 2 or 3 has made it to the next stage I will now take more time to digest the application. I already have decided there is a nugget of a good idea here and that there is a good enough team to support the idea. Now I want to dig in deeper. How much do I really like the idea? How competitive is the market? Is there a unique twist they have put on the idea? Do they have a prototype demo? Do they have a functioning web site, and better yet one with increasing traffic?
I try to access and weigh all of those factors to decide whether to recommend to my partners that we interview these candidates. As my partner Steve Barsh would probably write, I am now also looking to understand assumptions and risks. The risk with a great team and a great idea but with no demo is they have not proven they can build the product yet. Meanwhile, a good team with a good idea that has a functioning product (web site, for instance), and can show traffic growth and happy customers, has eliminated some significant risks.
So…what is my advice if you are looking to DreamIt or one of the other programs for seed stage funding?
First, think through your idea. Make sure you are able to explain it clearly and that there is something unique and special about it. You may only have a few sentences to catch someone’s attention. Second, at the very least put a prototype or mockup together to help the reader visualize what you are thinking about. Third, make sure you have a great team.
As an example, I had three entrepreneurs reach out to me in December or January (before our applications were open) and explain their idea. In each case it was one non technology guy with a web services idea. I told each of them to user PowerPoint, Photoshop or anyone of a number of online tools (Balsamiq for instance) to create a mockup or if possible a working demo. I also told each of them find a developer or technology team. Now, just a few days before we make our final selections, lets look at what happened. One of them created a great prototype and built a team consisting of two new technology guys. I already liked his background and his idea and among other things it showed me his ability to listen and displayed his tenacity and drive. The other two? Neither have made any progress in finding even one technology person to add to their team and neither have fully answered some of the business questions I initially posed. And neither of them will be in DreamIt this year.
This is great advice. I wish that I could have read it before I sent off applications. I am glad to hear of your emphasis on the team members. We have a great team and know that we will be successful. We also understand that if our current project turns into a dead end, we will be able to mold and adapt our business model into something that will be successful. I assume that for those reason, you emphasize on team members.
This is our first year applying to these programs and it has been a learning experience and we are very hopeful that one organization can see our potential and give us a shot. I am confident that if we can get an interview then we can get ourselves the rest of the way. In the words of Mark Twain, it is impossible to sell others when you cannot first sell yourself. Good thing I’m sold. Thanks for the open information.
It is interesting to see the thought process that went behind the application approval process.
There is an interesting parallel between this and the book, “Blink!” by Malcolm Gladwell. It’s all about the first impression
- Jawad
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