All posts filed under “London Tech

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Knyttan: the newest, coolest, “printing” company

One of the companies in the current Techstars London batch just launched their website yesterday, Knyttan.  They’ve got some of the most interesting/unique technology I’ve seen in a while: they turn current industrial knitwear looms as 3-D printers for knitwear.  The founding team includes three graduates from the Royal College of Art, and they’re full of passion and knowledge of knitwear.  When it comes to disrupting an industry… they’re about to do it.

Current state of affairs

Knyttan is currently focused on classic knitwear: sweaters/jumpers and scarves.  Today’s technology is literally archaic; the current code/protocol is 30-40 years old, and can be directly traced to punchcards!  To create a sweater, a designer has to communicate the design/dimensions as best they can to a factory that has the loom manufacturer’s software to create the punchcard-code necessary to knit the sweater.  These are then sent back to the designer in a series of back-and-forths until the designer gives their okay for manufacture.  And when you’re a designer in the US/Europe dealing with a factory in China/Southeast Asia, this is a long, painful process.

For manufacturers, they also have significant constraints in what they can do.  To knit a particular design of jumper, the different colours of yarn have to be on very different specific spools on the machine.  And once a machine is set up to knit, it is time-consuming and costly to set it up to do something else.

Knyttan’s technology

What Knyttan can do with these existing industrial looms is incredible.  They have essentially re-created the entire stack of code necessary for these looms to run.  Instead of having to use complex software provided by the loom manufacturers, Knyttan has created a web interface that anyone can use.  For people with knitwear factories, they can use Knyttan to turn their looms into general-purpose knitwear printers.  It doesn’t matter what spool each colour of yarn is on, Knyttan can adjust.  A loom can knit a sweater, and then a scarf, and then something else entirely without any costly change-over time.

For the first time, a designer can have complete control of the design/manufacture process.  And for the first time, a manufacturer can radically improve productivity of their existing machines.

The two BIG effects

1- Democratization of design.  Right now knitwear design is a pain in the ass, because designers don’t have the full set of tools necessary to go from what’s in their head to the actual creation of the item… manufacturers have to be part of the process.  Knyttan allows any designer to create something they’d like to have/wear, and print/knit it out right away.  This is transformational in the industry, particularly for designers that want to do more with knitwear, but don’t because of the pain involved.

2- Radical change in supply chain.  The design cycle to design/develop knitwear is extremely long, potentially weeks/months as samples are sent between western designers and overseas manufacturers.  Knyttan upends this process… designers can get back a prototype of their design in a matter of minutes to hours.  But perhaps more importantly Knyttan disrupts the supply chain by making it far easier to create knitwear in smaller batches that can be manufactured on demand.  Instead of being forced to make an order months ahead of time, either getting stuck with excess inventory (or having demand for product that can’t be filled), designers can order stock when they get low.

How you can check Knyttan out

If you’re in London, go check out their shop!  You can buy some of their existing stock designs, or even design and print yourself an item in-store!  (Literally, they have a loom in the store where they can create items immediately.)  It’s in Somerset House, and you can find information here: https://knyttan.com/find-us/

If you’re not in London, you can design and create a sweater/jumper or scarf today, and have Knyttan deliver it straight to you.  They just launched their site yesterday, so check it out here: https://knyttan.com

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Joining Techstars

After nearly five years at Google, Friday May 30th was my last day. I’m extremely happy to announce that I’ve accepted a role at Techstars as Director, Techstars Vision.

I first started speaking with David Cohen, the co-founder and Managing Partner of Techstars, in the summer of 2009 when I was doing my first research on seed accelerators. Over the past five years, he and several others of the Techstars team have given me valuable feedback that I’ve used in evolving Seed-DB. As I’ve gotten to know the Techstars team, I was constantly impressed with the quality of the people I met, and started in my new role at the beginning of June.

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What’s ahead – Techstars Vision
I’ve joined Techstars to build and lead Techstars Vision, a new Techstars product. One of the key aims of Techstars is to build a strong network to support startups, made up of founders, mentors, investors, and corporations. Techstars Vision fits into this by building a significantly deeper and broader network between corporations and Techstars companies.

There are two parts to Techstars vision. The first is helping our Vision partners truly understand the very early stage startup market, so they can best engage with it. We do that by doing deep analysis on early stage startups, examining trends in startups, and evaluating the overall seed market. The second is facilitating direct meetings, presentations, and engagements between corporate partners and Techstars startups. We hope that our Vision partners will turn into customers and BizDev partners of our Techstars companies, helping both sides succeed.

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What’s continuing – Seed-DB
Seed-DB will not be changing at all; I will continue to maintain it as a completely neutral database of all accelerators and companies from those accelerators. Techstars will not be treated any differently than any other accelerator, particularly since I will continue to get funding data solely from Crunchbase. If anything, some of my work with Techstars Vision will align with Seed-DB and I’ll likely have more time to follow-up with the many e-mails I get around Seed-DB!

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What’s behind – Google
It goes without saying that it was a very difficult decision to leave Google. I spent nearly 4.5 years on the same team, and in that time the team grew 8x and the revenue we managed grew 40x. (!) I’ve learned so much from my managers and Google’s leadership and culture and really value my time at Google. To this day, even with 50k employees, each week any employee can walk up to the mic at Google’s weekly TGIFs and ask Larry Page and his management team questions they really care about, no matter how hard-hitting they might be. That level of trust in employees and willingness to face reality will always inspire me. What I’ll miss most are my amazing colleagues; you know who you are.

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Introducing Seed-DB: a database of seed accelerators and their companies

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I’m pleased to announce Seed-DB, a database of seed accelerators and the companies they have accelerated.  I originally started assembling this data in the summer of 2009 as part of the research paper I wrote for my MBA thesis at the University of Cambridge: “Copying Y Combinator: a framework for developing Seed Accelerator programs.”  Ever since, I’ve been keeping it up-to-date in a number of Google Spreadsheets.

Seed-DB puts all of the best information I have and puts it in a much more digestible format for easy viewing and comparison.  I have integrated Crunchbase data to get up-to-date information on funding rounds, number of employees, and more.  I believe that Seed-DB is the most useful and comprehensive resource on seed accelerators around the world.

Economic impact

One of the clear things that stands out to me is the economic impact of seed accelerators.  Even though the data is far from complete for some programs, these are some key statistics as they stand today:

  • >100 programs world-wide
  • >1300 companies have been accelerated
  • ~65 companies have already exited for an estimated $930million
  • >3000 jobs created
  • >$1billion in angel and venture capital funding raised
In particular, as the data becomes more complete I estimate that the number of jobs created could easily double.  And as the companies mature and have exit events for investors, the exit values will be much, much larger.  (Paul Graham has publicly stated that just the top 21 Y Combinator companies have a combined value approaching $5billion.)

Key disclaimers

Incomplete data

As hard as I’ve tried, the information on Seed-DB is NOT 100% complete.  There are three reasons for this:

  • Missing startups.  Some accelerators have made it very difficult to find lists of startups that have gone through their programs, so there are many startups missing in less visible programs.  Please contact me if you can provide me with any details.
  • Missing data in Crunchbase.  Many companies have not entered any information in Crunchbase.  That’s where I get details on funding and number of employees, so if you want this information to be accurate please update it there.  (If you run an accelerator, it would be ideal if you could encourage your startups to do this.)
  • Missing accelerators.  I believe I’ve tracked down all of the seed accelerators world-wide, but please let me know if I’ve missed some.  Note that I’m using a pretty strict definition of a seed accelerator.  I hope to eventually track other types of programs, too.

MVP

To use a buzzword, this is a minimum viable product.  Reid Hoffman has been quoted as saying “if you’re not embarrassed by the first version of your product, you’ve launched too late.”  Well, I’m at that point.  There’s a lot that I still want to do, some of user-visible projects and tasks are on the roadmap, but what’s launching today is the core of my vision.

Valuations

Please note that while exits are often publicized, the price paid for most companies is NOT public.  So for the vast majority of companies I’ve simply had to guess.  I’ve put a confidence level by each guess, with the highest-level confidence reserved for the cases where the price was public or widely reported.  These values do not come from any of the companies involved.

Final word

If you’ve made it this far, I’d ask you for three things.

  1. Sign up to my seed accelerators newsletter.  (It’s very low traffic, and I don’t share or sell e-mail addresses… ever.)
  2. Send me feedback.  I want to make this useful for startups interested in accelerators, people founding/running accelerators, and investors interested in companies from accelerators.
  3. If you’re interested in collaborating with me on the technical side of things, please get in touch.  I’m new to web applications, and could use an experienced partner.

Thanks for your attention!

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Startup accelerators in 2011

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[UPDATE] –

Please see the Seed Accelerator Knowledge Base for the most up-to-date information on seed accelerators world-wide, and the startups that have graduated from them.

 

I’ve long been interested in the seed accelerator model, as started by Y Combinator.  I wrote my master’s thesis on it, and wrote a follow-up post this spring.  Recently, two things have happened that I wanted to write about.  First, I restructured the spreadsheet where I maintained a list of all companies to come out of seed accelerators.  And second, NESTA (National Endowment for Science, Technology and the Arts, a UK investment and research body) recently undertook a significant piece of research into seed accelerators.

Update to Seed Accelerator company list spreadsheet

As a part of my original paper on seed accelerators, I compiled a list of all the companies that have come out of seed accelerators like Y Combinator, TechStars, Seedcamp, et cetera.  Each accelerator had its own tab, with the details of all their companies.  I kept edit rights, mainly so that I could be sure of the details for my paper and follow-up work.

As seed accelerators have exploded in number world-wide, it’s become nearly impossible to keep this working.  There were too many tabs for different accelerators to be found properly, and it really is best if the people that run the different programs can edit the details for their companies.

So there are now individual documents for each seed accelerator program, and the original document now has links to each individual program sheet.  If you run a seed accelerator, please e-mail me and I’ll be sure that 1) I have a separate spreadsheet for your accelerator and 2) you get full edit rights for your program’s spreadsheet.  (jed.christiansen@gmail.com)

Please check the new seed accelerator company directory here.

NESTA research

Kirsten Bound and Paul Miller recently undertook a significant piece of work to define, describe, and analyze seed accelerators on a global basis.  The result of which can be found on the NESTA page: “The Startup Factories“.  [Direct link to their PDF paper.]  I spoke to Kirsten a couple of times prior to and during their research, and they developed a real sense of the opportunities and challenges of startup accelerators.

While I didn’t have time to make NESETA’s half-day conference on seed accelerators last week, a friend of mine (Mark Littlewood of the BLN) did and wrote about it here: “Do we need startup factories?“.  The key element can be found at the bottom of his post, where Mark echo’s something I’ve been saying since my very first paper.  Only the best, top-tier seed accelerators will truly be of value to entrepreneurs. And the followers, the “me-too” seed accelerators that are starting to pop up everywhere, will be of little to negative value.  While in the long run it will be easy to tell between the two, in the short term I am afraid that startup founders may get fleeced.  Startup accelerators need to clearly understand their unique advantages that can allow them to recruit some of the best startups away from the Y Combinators and TechStars of the world.  If they can’t offer that level of value, it might not be worth it for them to exist.

The NESTA report is quite well written and clear.  Some of the data is a little dodgy; in particular I’m not a fan of the Tech cocktail rankings at all, since they have yet to mention what data they’re using to create the rankings.  (I personally believe that it overly weights the accelerators that more freely share data.)  But overall, it’s a great resource.

If you do have comments, please share them with the writers.  The discussion paper is currently in draft form, but they hope to finalize it soon.