Entrepreneurs who think they have the next big idea or are starting a business could be getting a new funding opportunity.
Local businessmen Jim Mackay and Gary Masner have founded the Southwest Colorado Accelerator Program for Entrepreneurs, or SCAPE, a program that, if it comes to fruition, will provide funding and mentoring for startups and small companies.
Accelerators have grown in popularity, and one of the largest nationally is TechStars. The company’s co-founder Brad Feld said he thinks an accelerator should be established in every town with a population of at least 100,000 to foster a healthy economy, according to an article in The Wall Street Journal.
“The accelerator gives us the potential to build innovation,” said Roger Zalneraitis, executive director for the La Plata County Economic Development Alliance.
Accelerators are for high-growth companies and are typically designed for technology companies, but entrepreneurs from any industry can apply for a spot in SCAPE. The program will be highly competitive, said Masner, CEO of Advanced Mobile Propulsion Test.
The program will last for three to four months and those accepted, typically two to four companies, will work one-on-one with mentors and pitch their business venture to a group of angel investors at the end of the program who can invest in the company in exchange for a stake in it.
Entrepreneurs in La Plata, Archuleta, San Juan, Montezuma and Dolores counties can apply for spots.
Mackay and Masner are part of the Founders Group, a group of 10 to 15 entrepreneurs who will serve as mentors to businesses as they go through the program. All founders have run their own startup, managed a large company or have other business experience.
Each founder is contributing about $5,000, which will be distributed to companies in the accelerator in exchange for a stake in the company, though not necessarily equity interest, Masner said. The group is determining how much funding will be distributed to each company. The funding will be used for startup costs, such as financial planning or filing for a patent.
SCAPE is planning to run a small operating budget so the majority of funding will go to the businesses in the accelerator. The program is lining up the remaining financing needed to get it off the ground, and it is expected to launch sometime this year.
The group is trying to find a location to house the businesses accepted.
Region 9 is working out funding, but it plans to fund about $100,000 and is applying for a grant, said Ed Morlan, executive director of Region 9.
The La Plata County Economic Development Alliance is providing $25,000 in funding, Zalneraitis said.
jdahl@durangoherald.com.
