Celebrating the Multiplier Effect

Endeavor Atlanta is celebrating its fifth anniversary this year and our global organization is turning 25! Our Southeastern-focused office is graduating from the “StartUp” to the “ScaleUp” phase, where we accelerate our work and begin to see the longer-term impact on the ecosystems we serve. There are many ways to measure impact in the world of entrepreneurship, including job creation, revenue growth, capital raised, company valuation, wealth creation, and the number of startups launched. These outputs are very hard to tie back to any one entrepreneur, early employee, investor, mentor, or entrepreneur support organization since it takes a village to start and scale a company. And most importantly, it takes a crazy founder or two to create something from nothing.

That’s why the word “ecosystem” is so often used in the startup world, borrowing from the world of biological systems that interact to create something extraordinary. But if you dig further into the background of the most successful companies, you’ll often find a few individuals that mentored, personally invested in, and inspired these big-thinking founders. At Endeavor, we call these inspirational entrepreneurs “Big Bubbles,” named after the visual depiction of their positive impact laid out over time. When multiple big bubbles come from a single startup, you often hear the term “mafia” used to describe them (e.g., The Paypal Mafia). Endeavor has seen its own entrepreneurs generate startup mafias around the globe, from Rappi in Latin America, who’ve spawned over 100 startups, to the Careem mafia in the Middle East. We call this paying-it-forward mindset The Multiplier Effect, when an individual reinvests their own entrepreneurial success and multiplies it across many other startups. As former Endeavor President Fernando Fabre points out in this great TedTalk, these “Big Bubble” entrepreneurs don’t measure success by the size of their wealth or their companies, but by the size of their influence. 

To celebrate our anniversary, we’ve decided to highlight the Big Bubbles within our Atlanta ecosystem. Over the coming weeks, we’ll release bubble maps of several inspiring entrepreneurs who embody the pay-it-forward mindset that Endeavor hopes to accelerate throughout the Southeast. This week we are releasing maps of four of the biggest bubbles in Atlanta: David Cummings, Tom Noonan, Jon Hallett, and Chris Klaus. These founders turned investors and mentors have collectively helped kickstart over 150 startups in our ecosystem, several of which are valued at over $1B.

Have you been inspired or mentored by any of these bubble maps, but don’t see your company?

David Cummings

After the successful sale of Pardot to ExactTarget in 2012, David decided to reinvest his knowledge and financial gains straight back into Atlanta’s startup ecosystem. As you can see above, he has influenced many of Atlanta’s most successful startups including unicorns SalesLoft and Calendly along with Terminus, Rigor (successful exit to Splunk), and GreenPrint (successful exit to PDI Software). Perhaps most importantly, David launched Atlanta’s largest home for tech startups, the Atlanta Tech Village (ATV), where founders and investors gather and startups are born every week. ATV was also launched before co-working spaces were ubiquitous, a non-obvious bet on the future of our city. In addition, David’s original company Pardot is now the core of Salesforce’s marketing cloud, employing hundreds of tech workers in Atlanta and generating hundreds of millions in annual revenue.

Tom Noonan

One of the region’s biggest bubbles, Tom co-founded Internet Security Systems with Chris Klaus (see below) in the mid-90’s, scaled it through an IPO and eventual sale to IBM for $1.3B in 2006. He’s since gone on to start Joule-X (sold to Cisco Systems) and invest in many of Atlanta’s most successful technology companies including SalesLoft and FullStory. He’s also advised other founder-led Atlanta success stories like Manhattan Associates, where he has served on its Board since 1998. Tom continues to be one of the most active angel investors in the Southeast, betting on the next generation of high-growth, high-impact entrepreneurs.

chris klaus

The technical brains behind one of Atlanta’s most successful IPOs, Chris Klaus led Internet Security System’s technology development where he eventually teamed up with Tom Noonan to scale the cybersecurity platform all the way through the challenging dotcom era. Chris has continued to pay forward his success by angel investing in many Atlanta startups. In 2014, Chris led the creation of one of the most successful startup “factories” in the world, Georgia Tech’s Create-X program, which enables students to launch their startup idea as their summer internship. Chris also offers mentorship and investment in Create-X companies, including Stord, a multi-billion dollar logistics company launched inside of the program.

jon hallett

Jon is one of the most under the radar angel investors and entrepreneur advisors in our ecosystem, but one of Atlanta’s biggest bubbles. He started his first software company in in the late 1990’s (NMP Inc.) and took that early success forward to lead, co-found and directly invest in many startups including Northridge Systems, Cloud Sherpas, BetterCloud, MessageGears and many others. He’s a sought after mentor and advisor by many of the region’s top startup founders.

ScaleUp ATL’s Second Cohort

Endeavor Atlanta is thrilled to announce its 2022 cohort of ScaleUp ATL: a 7-month, non-dilutive program designed to equip Atlanta’s fastest-growing, highest potential Black entrepreneurs with the resources and confidence they need to take their companies to the next level. After a competitive interview process, including interviews with leading entrepreneurs and mentors from Endeavor’s network, six founders leading high-growth, seed to series-A stage companies were selected for this year’s program:

• Derrick Barker, Co-Founder and CEO of Nectar

• Brittany Mosely, Co-Founder of Nectar

• Julius Bryant, Co-Founder and CEO of Jax Rideshare 

• Dana Weeks, Co-Founder & CEO of MedTrans Go

• Otwan Lowery, Founder & CEO of Precise Grants 

• David Hailey, Founder & CEO of Countifi

Nectar - Derrick Barker & Brittany Mosely: 

Founded in 2021, Nectar is a marketplace that allows businesses with real estate income streams to sell a portion of their future net cash flow in exchange for liquidity upfront, allowing real estate entrepreneurs to scale. The company packages pools of cash flow into diversified securities that investors can purchase to receive passive income. This provides these entrepreneurs capital to make improvements or buy additional properties without needing to sell their current properties or dilute themselves by raising equity.

“Running a startup and building a company is hard -- it’s hard no matter what. Being given a chance to build a better company or be a better entrepreneur is a no-brainer. As part of Endeavor ScaleUp, we will be connected to people who have done it before, which can help us make fewer mistakes. The network has been resourceful even throughout the selection process, so we are honored to be part of this year's cohort." – Derrick Barker & Brittany Mosely. 

Jax Rideshare - Julius Bryant: 

Jax is an online marketplace for renting affordable vehicles, providing access to the gig economy. Focusing on being rideshare platform-agnostic, gig workers that rent from Jax have been able to increase their earnings. Renters are required to book for two days to start and then can extend their rental for as little as one day for as long as they need. The company was founded in 2018 and currently serves the Atlanta market with plans to expand to other Southeast markets in 2022. 

"I'm so excited to have been accepted into this year's ScaleUp cohort. Based on the conversations I've already had with the Endeavor team and its network of mentors, I believe this program will be exactly what I need to help unlock my full potential as a CEO and to push Jax to the next level." – Julius Bryant. 

MedTrans Go - Dana Weeks: 

MedTrans Go is a safe and reliable transportation and interpretation marketplace for non-emergency medical patients. MedTrans Go provides a technology platform that acts as a broker between transportation and healthcare providers, enabling patients to book the services they require. The company’s mission is to reduce medical appointment cancellations and the burden these cancellations place on healthcare providers and remove barriers for all patients to access necessary healthcare services.

"I am truly grateful and delighted to be chosen for the Endeavor ATL ScaleUp program.  The top-quality people I met during the interview process confirmed my thoughts as to why I chose to apply to the program.  I’m looking forward to gaining exposure and access to the endless resources, mentors, and advisors in the Endeavor network.  Atlanta is fast becoming one of the leading tech hubs in the country, and we are excited to harness this powerful program to showcase how MedTrans Go is impacting lives and ready to scale and go to the next level.” —Dana Weeks.

Precise Grants - Otwan Lowery: 

Precise grants is a fiscal compliance software for US-based nonprofit organizations. Due to the intensive regulatory and compliance requirements of the nonprofit sector, the administrative staff is inundated with tasks related to grant reporting, board reporting, and preparation for audit and tax filings. Failure to meet compliance requirements can lead to loss of funding and/or their tax-exempt status. The company’s software streamlines this process to help nonprofits save time and money and remain compliant with their funders and the government. 

"It is a privilege to join the Endeavor ScaleUp ATL program.  I look forward to learning from the many rock-star entrepreneurs and business leaders within the Endeavor network.  Undoubtedly, this program will help our company scale quicker and be more impactful." – Otwan Lowery. 

Countifi - David Hailey: 

Countifi uses computer vision and machine learning to help clients count and manage inventory more efficiently. The company takes inventory pictures, and its platform counts them automatically, eliminating the need for manual counting. The company started with the airline industry but plans to expand into the healthcare space where there is a similar need. Countifi’s mission is to add value, transparency, and ease to the inventory management process.

“I am honored to join the Endeavor ScaleUp program.  Entrepreneurship is a battle, and no battle is won alone. I chose to apply to Endeavor because the mentors, partners, and program contents equip companies with the tools to succeed.  I look at the current Endeavor companies, and I am truly inspired and excited about Countifi's potential to be pushed to grow and scale.” – David Hailey.

Welcome to the 2022 BHM ScaleUp cohort!

Endeavor is excited to announce the launch of our third cohort for ScaleUp BHM: an 8-month, non-dilutive program designed to equip Birmingham’s fastest-growing, highest potential entrepreneurs with the resources and confidence they need to take their companies to the next level. Each finalist completed a multi-step interview process that mimics the acceptance process for Endeavor’s global network.  After interviews with local leaders and leading mentors from Endeavor’s regional network, 4 entrepreneurs were selected for this year’s Birmingham cohort:

• Theo Harvey, Founder and CEO of SynsorMed

• Jennifer Ryan, Founder and CEO of BLUEROOT

• Austin Senseman, Co-Founder and CEO of Conserv

• Nathan McMinn, Co-founder and CTO of Conserv

SynsorMed- Theo Harvey: 

SynsorMed is the first platform to provide a comprehensive RPM solution that combines video telehealth, proactive remote patient monitoring, and analytic insights to ease the journey toward value-based care. SynsorMed integrates with consumer-grade FDA-approved wearable devices to provide an analysis of a patient’s condition outside the doctor’s office. Patients who are suffering from chronic conditions like diabetes, hypertension, and anxiety can increase communication between providers with HIPAA-compliant telehealth.

BLUEROOT- Jennifer Ryan:

BLUEROOT is a health-conscious fast-casual restaurant concept serving up salads, grain bowls, and more, all crafted by their James Beard award-winning chef. They’re bringing bright, delicious, and nutrient-rich foods to Birmingham for everyday enjoyment on their mission to combine quality, nutrition, and convenience. BLUEROOT's produce-forward menu is a seasonal love fest of the freshest ingredients available and showcases the best Birmingham's local farmers have to offer. 

Conserv- Austin Senseman & Nathan McMinn:

Conserv is combining IoT and custom analytics software to create preventive conservation solutions. By integrating risk management for the environment, pests, disasters, and other agents of deterioration, Conserv has built a single tool for collections. Conserv is partnering with researchers and practitioners to build the next generation of sensors and software for cultural heritage.

Endeavor offices around the world offer varying ScaleUp programs to the entrepreneurs in their ecosystems. While each program is designed by local affiliates with content that meets the needs of their local entrepreneurs, Birmingham is the first program to include executive coaching for founders. For this year’s cohort, Executive Coach and Endeavor NWA Board Chair Elise Mitchell will hold one-on-one Executive Coaching and will facilitate Hogan 360 reviews for each of our ScaleUp founders. Our local Endeavor staff will also host monthly “Focus and Fuel Forums” led by successful operators and founders from Endeavors’ regional network. The team will pair founding teams with leading entrepreneurs and industry experts for founder-to-founder mentor sessions and tactical advice on challenges the founders have identified. 

Creating The Blueprint with Mark Wilson

Mark Wilson may have been told in his early years to follow a traditional path to success, but this father of a family of entrepreneurs blazed his own trail. It’s a road that few people who share Mark’s humble beginnings growing up in a housing project in Fort Smith, Arkansas manage to travel. 

At an early age, Mark says he was taught to “work, get a job, and grow professionally” to build a successful career. And while he may have adopted his family’s guiding advice and followed a corporate path at Dun & Bradstreet for twenty years, he eventually struck out to be his own boss. 

When Dun & Bradstreet prepared to outsource employees, Mark “approached the company about [providing] some of the work they were about to outsource and they liked the idea.” Thus, Ryla Inc. was born. Over the next decade, Ryla grew to $150 million in revenue with 4000 employees.  Mark led Ryla until 2 years after it was acquired by Alorica. Looking for a new venture, Mark purchased eVerifle, a background screening company, with 2 other partners. Mark moved into the CEO position at eVerifile but shortly after, they lost their largest client. To supplement this revenue, Mark returned to his roots and launched a BPO and call center subsidiary. While the call center was gaining traction, the eVerifile board wanted to pursue more software solutions.  Mark, however, once again saw potential in the call center industry and an opportunity in Black communities across America. With a focus on creating higher-paying jobs in underserved suburban areas, Mark launched his next venture, Chime Solutions. 

Located just miles south of downtown Atlanta, Chime Solutions delivers high-touch customer care solutions for global enterprise clients like AT&T and Kaiser Permanente. For years, the outsourcing industry was dominated by international companies delivering impersonal solutions to their client’s outsourcing needs, often through offshore labor. Chime Solutions is different; providing personal and attentive interactions for customers while employing people in underserved domestic communities. Chime Solutions’ bottom line is supporting people. “I don’t know that I’d ever say that ‘we’ve arrived,” laughs Mark, “but early on I knew that we had a different model by the reception that we got from different customers, and we had a team that rallied around us. I knew we had something special.” 

The path was not always an easy one, and like every entrepreneur, Mark says he faced his share of challenges. “I’m like any other person – I generally feel like we will figure it out. We’ve never missed a payroll, but there have been days where we have been close. And those are bad days,” he says. 

Mark wants Black founders who most resemble him and his experience to be able to learn from his struggles and successes. “I think that whatever I’ve learned along the way should be available to others who are in similar situations as I’ve been in…I feel a strong conviction that [founders] like me…that are African American, or minorities, and have experienced success can [make that success] available for those that can benefit from it.” 

For Mark, those lessons are the seeds for what he calls ‘the blueprint’ – a playbook and initiative he’s hoping to create for other founders to follow. 

“So the blueprint for me is taking the day in the life of an entrepreneur and making those things available to people. Like raising capital: what is the lifecycle of a capital raise? [And] acquiring talent: what are the thought processes? What are the things that you should look for, the [factors] that should influence your decision about a senior hire? How do you manage growth? What are the tenets of that?”

Mark sees the initiative as a way to counterbalance the misguided mentoring attempts that define most corporate entrepreneur support programs. Those programs, Mark says, place the emphasis on the wrong part of the entrepreneur’s journey by assuming a lack of knowledge.  “The default within the corporate community towards minorities is to assume you are ‘uneducated’ about whatever it is,” Mark says. 

He continues, “People are at the center of everything you do. Even if it’s not a labor-intensive process, you have to sell your product to a person. So you gotta be, in my view, connected to and understand what drives people. You can’t be successful if you can’t connect with people. You have to move the product to someone who, at the end of the day, is the person who is buying it.” 

Mark says that one of the defining features of the Endeavor program is its ability to provide real-world advice about business-building rather than general platitudes or education about a marketplace. “When I joined, I didn’t think it would be that helpful to me, but it has been extremely helpful,” says Mark. "They have connected me with folks for the particular thing that I’m dealing with. And that person has experience with the particular issue I’m dealing with.” The Blueprint Mark is building will resemble the specificity and curated nature of the Endeavor network. 

Mark’s commitment to Chime’s mission of transforming customer service and improving the trajectory of unemployment has a trickling effect: the thousands of lives already positively impacted by the company is just the start. 20 years from now Mark would be proud “that [he] had too many people to count that reached their full potential because they were associated with [him] or something that he was involved in…[That] his person and his leadership facilitated a number too high to count of people having reached their full potential.”

Scaling Endeavor’s Impact Through ScaleUp

Early-stage entrepreneurs often have a large array of resources at their disposal preparing them to start their business, test their ideas, and find their first customers. Incubators and accelerators do a great job guiding and supporting founders at this stage. But what comes next? Between seed and Series A, companies find themselves with many challenges these support programs and networks can’t address. According to a recent study by Dealroom, 70-80% of Seed stage (funded) startups never reach their Series A.

For this reason, Endeavor offices around the world have launched pre-Endeavor programs called ScaleUp, with Endeavor Brazil starting the first in 2014. Our office launched its first last year in Birmingham and ScaleUp ATL this year. Over the past 2 years, ScaleUp has been an influential and transformative program for Birmingham and Atlanta’s most promising early stage founders. We are excited to share our lessons learned after two years and three cohorts of experience.

“ScaleUp is an impactful program that will help your company grow and scale in a more efficient way, while also helping strengthen your local network of entrepreneur connections.”

-Matt Pierce, Co-founder & CEO of Immediate

Why Is The Seed to Series A Stage So Hard?

Participants in the ScaleUp program normally generate somewhere between $500K to $2M in revenue, with triple-digit growth rates. This sounds promising, with real product-market-fit in sight. Companies at this stage are increasing their team size, understanding and building their culture for the future, and putting the initial pieces of their go to market strategy in place. They are also iterating on their product based on early customer feedback and learning to work with and leverage their first professional investors. With all these moving parts, relationships to manage and decisions to make, it’s no wonder so many companies stall at this stage. As LinkedIn Chairman and Former CEO Jeff Weiner once said, “One of the most valuable lessons I've learned in business is that managing a hyper-growth company is like launching a rocket - if your trajectory is off by inches at launch, you can be off by miles out in orbit.”

How Does ScaleUp Address Stage Specific Challenges?

Entrepreneur to Entrepreneur Mentorship: After being selected as a ScaleUp company, entrepreneurs have access to a wide breadth of services and programming, all curated for their specific challenges. Founders are matched with mentors within the Endeavor network through the eight-month program. Each founder/founding team will have a founder-to-founder match with a peer entrepreneur who is several stages ahead of them. These mentors are able to provide critical advice to determine the trajectory of the founder’s business and highlight the mistakes they made at their stage. Entrepreneurship is never easy, but having a fellow founder share their “war stories” makes it just a bit easier. 

“This is a great opportunity to hear from successful entrepreneurs who have been in your shoes and are, "on the other side." You gain access to useful information and resources without a huge time commitment.”

-Tiffany Whitlow, Cofounder & CDO of Acclinate

Curated Expert Mentors: Founders are also connected with industry experts and issue-specific mentors. During their monthly meetings with Endeavor staff, founders share their most pressing issues. Endeavor staff then find highly relevant mentors to assist with the founder’s challenges. These mentor connections assist the founders with their most pressing issues, provide critical advice and feedback and introduce effective business-building solutions. In addition, Endeavor schedules monthly “focus and fuel” forums with successful founders and functional experts to cover broadly relevant topics such as strategic planning, building organizational health, and defining metrics that matter. Founders have said that 40 minutes with an Endeavor mentor often saves them 40 hours.

“Imagine 5 years of networking, reading, coaching sessions, and feedback opportunities from the best in your industry, and having that condensed and handed to you over the course of 6 months from a group of folks that truly want to see you succeed. That is Endeavor ScaleUp. ScaleUp was by far one of the most valuable experiences on my founder journey. The courses, mentorship sessions, coaching, and feedback forums helped me to gain clarity and perspective about my business that I'm not sure I could have gotten elsewhere. I am super grateful for this experience. It was a real game-changer.”

-Tracey Pickett, Founder & CEO of Hairbrella

Capital Connections: Founders who are looking to raise capital have an opportunity to utilize the Endeavor network as well. The Endeavor team will facilitate several connections between founders and investors. During these connections, founders receive candid pitch evaluation, business advice, and in some cases, actual investment opportunities. In one particular event, a “Behind the VC”, one ScaleUp company was chosen to pitch in front of two VCs. The founder received live feedback and in the end, one of the VCs expressed interest in investing in the founder.

“Startup entrepreneurs are racing against time to achieve escape velocity. Endeavor gets that. Its ScaleUp program helps entrepreneurs cover more ground, faster and better.”

-Ortez Gude, Founder & CEO of Citiri

Creating Community: ScaleUp also provides a platform for community and camaraderie between the founders. Through the program, founders meet monthly for workshops and group check-ins. ScaleUp founders have also met outside the program to mentor and support each other. Similar to the Endeavor network, ScaleUp founders operate within a network of trust. Information shared within the ScaleUp program stays within the ScaleUp program so founders build trust that allows them to share and solve their business’s most intimate problems. 

“ScaleUp is the fastest way to avoid mistakes that others have made, saving you time, money, and heartache. Because of the access to a robust advisory group, I learned about the icebergs ahead before I had to go through them myself.”

-Delphine Carter, Founder & CEO of Boulo Solutions

Coaching to Fuel Personal Growth: Founders also receive executive coaching as part of the program. Elise Mitchell, a successful entrepreneur turned executive coach who serves on Endeavor NW Arkansas’ Board, met with each group of founders. Each founder was offered 3 coaching sessions, a Hogan 360 review, and a copy of Mitchell’s book. Founders labeled their time with Mitchell “a must” and “a non-negotiable aspect of the program.” For founders, they were able to strengthen their bond with their Cofounders, have candid conversations with their C-suite, and take a step back from the business to evaluate leadership ability.

“Especially as first-time founders I don't think Linq and us as the co-founders would be where we are without this program and the introductions it was able to make for us.”

-Patrick Sullivan, Cofounder and CTO of Linq

Assessing Growth Trajectory: The program’s capstone session, the Endeavor Readiness Panel, helps founders hold a mirror to themselves and their business. ScaleUp entrepreneurs interview with up to three pairs of mentors in a panel-style interview. Each mentor assesses the businesses’ current growth trajectory, the founder’s ability to articulate their vision, and their plan to implement it. Several ScaleUp founders mentioned the program highlighted major issues as well as the current trajectory of the business - things that would have been missed without intentional reflection. One company believed they were on the high-growth, VC track, but the Readiness Panel highlighted to them that their business was on an Early Acquisition path. This important insight helped the founders optimize their decisions to match the reality of their business, the market and their own personal goals.

“ScaleUp gets you into the habit of focusing on the most important actions necessary to scale your business.”

-Del Smith, Co-founder & CEO of Acclinate

Lessons Learned

Over the past two years, we’ve learned many things that are unique to seed to series A stage, high-growth startups. First, each founder and company’s needs are unique - so frameworks and generic programming is generally ineffective for entrepreneurs at this stage. Thankfully Endeavor’s model is already set up for curated support, so the ScaleUp program is a natural extension of the work we already do with full Endeavor Entrepreneurs. Second, just because a ScaleUp company is high-growth by definition doesn’t mean it’s on a venture-backed path. This is the right time for founders to understand their trajectory very clearly before they pursue venture capital or make decisions that don’t match the style of business they are building. Third, the importance of community amongst similar stage founders cannot be overstated, especially in such uncertain times. Having a trusted space to discuss your biggest challenges, have others listen and get useful ideas from peers propels entrepreneurs, their companies and their ecosystem forward. Lastly, executive coaching was a critical component to the success of the program the past two years and will be into the future. A professional sounding board that can dig into the messy leadership issues each founder faces increases their confidence and accelerates their ability to make clear, thoughtful decisions in real time.

If you’ve worked with seed to series-A stage startups, we’d love to hear what you’ve learned in the comments below!

Reflecting on our first year in Birmingham: Why focus on growth stage entrepreneurs?

When I made the decision to leave my role as Director of Marketing at Pack Health to lead Endeavor Atlanta’s Birmingham operations, I knew there would be a learning curve. Those first few months were marked by existential questions for which I had hypotheses and data points but no definitive answer. Did we have enough companies at the scale and growth rate required for Endeavor’s global network? Once entrepreneurs lock in on product market fit and achieve meaningful year over year growth, shouldn’t they be focused on executing the model? Beyond a few impressive connections and the buzz of international affiliation, what value could another network or program really add? 

It is absolutely possible to build a business without a curated network or program, but here’s what I’ve learned. With the growth of a team and customer base, entrepreneurs’ needs become more specific and complex, the risk of failure becomes higher, and (on a more positive note) the impact of success can grow exponentially. Looking back on our first year in Birmingham, I’m excited to report that the time is truly ripe for Endeavor to select and support high impact entrepreneurs.

Birmingham is having a moment.

I was quite thrilled when, at a virtual Endeavor Event a few months ago, a global mentor observed: “I keep hearing about all these amazing companies in Birmingham, where did they come from?” Help Lightning’s $8M round and impact with enterprise customers, Fleetio’s $21M Series B, and more recently Landing’s $100M raise have put a national spotlight on Birmingham Tech.

Birmingham’s ecosystem of support for early stage founders is now light years ahead of where it was when I moved here for VFA in 2015, with much of the momentum building this past year. The passing of the Alabama Incentive Modernization Act catalyzed the launch of Techstars Alabama EnergyTech and Bronze Valley’s Accelerators. Innovation Depot and the EDPA are leveling up their programming under new leadership. Birmingham Bound and RedHawk Ventures have spearheaded a new initiative to redefine relationships between larger businesses and startups.  

These resources can all be pivotal in helping entrepreneurs access capital, search for product market fit, and establish year over year growth. It would be unrealistic, however, to expect entrepreneurs to graduate these programs ready to start Endeavor’s global selection process, where the typical company selected in 2020 made over $5M in 2019 and is doubling their revenue year over year. And what about companies that did not leverage these programs to establish their model, but do need mentors and investors to realize their full potential?

Our solution to nurture a robust pipeline of Endeavor Entrepreneurs in Birmingham was launching ScaleUp: a non-dilutive program that exists in different forms around the Endeavor world to select and support the most promising pre-Endeavor founders and accelerate their growth. 

Zooming with the ScaleUp 2020 Cohort: Josh, Mandi, and Jared of O3 Solutions, Hassan and Wayne of Smart Alto, Andy and Lauren of Case Status, and Ethan and Weida of Fledging.

High growth drives high impact.

Endeavor selects and supports the fastest growing, highest potential entrepreneurs because they predictably create the most jobs, reinvest the most capital, and become the best mentors for other entrepreneurs in their communities. What really excites me about Endeavor in Birmingham is that the same way international business leaders unlock doors for Endeavor Entrepreneurs, we have seen our national and local networks of Endeavor Entrepreneurs provide lightbulb feedback for ScaleUp participants. ScaleUp founders are similarly primed to pay their success forward in mentoring earlier stage entrepreneurs. 

Endeavor’s merit-based approach to selecting and supporting entrepreneurs protects an intimate “Network of Trust” that ensures connections of real value. Making 10 connections without focused goals or relevant skill sets at best is a pleasant diversion and at worst wastes 10 people’s time. Making just one connection with clear context and applicable experience to address a strategic priority can completely change the game. Time being the most precious of resources in the world of high impact entrepreneurship, careful curation builds trust with entrepreneurs and mentors alike.  

This test proves particularly critical in the event of touchy topics like changes in executive leadership or industry news that threatens a company’s market position. In the words of one of our 2020 ScaleUp participants, there are times where mentors who “don’t pull any punches” are essential. The empathy and rapport of shared experiences, combined with the commitment across the network that individuals’ specific challenges will not be repeated in other contexts, is in many ways Endeavor’s “secret sauce”. 

Birmingham can also go bigger!

When Endeavor selected Tony Summerville of Fleetio, many asked: who else has made it to this stage and is growing at this pace? A year later, we actually have two Birmingham entrepreneurs who have passed Regional Selection Panels and are on track to interview at an International Selection Panel (ISP) for Endeavor’s global network in 2021.

Endeavor Entrepreneur Tony Summerville after passing his International Selection Panel, October 2019

Looking back, it’s likely not a coincidence that both ISP candidates have past experience founding and leading companies through substantial exits and IPOs.  Another thing they have in common is that they see an opportunity for outsized growth and Endeavor is a network that can provide them the resources to go bigger than any of their earlier ventures.

The “Big Hairy Ambitious Goal” 

As you may have gathered, Endeavor is an organization of, by, and for entrepreneurs. This means that everything we do is designed in partnership with the entrepreneurs we serve and relies on entrepreneurs who give back.

The underlying premise is that high growth entrepreneurs become high impact leaders when they think bigger, scale up, and pay forward their success to support the next generation of founders. Without this transformation, moments pass and opportunities for an ecosystem multiplier effect are lost. Endeavor’s “Big Hairy Ambitious Goal” for Birmingham is that the entrepreneurs we select and support will have an enduring impact on local, regional, and potentially global scales.

Mentor Spotlight: Sean O’Brien

Name: Sean O’Brien 
 
Current Title: Managing Partner, Overline VC

Location: Atlanta, GA 

This month’s mentor spotlight goes to Sean O’Brien. Sean is a Co-founder and Managing Partner at Overline, an Atlanta-based, founder-operator-led VC firm focused on investing in seed-stage startups in Atlanta and the Southeast region. 

He’s been an Endeavor mentor since the early days of our Atlanta office in 2017. We would like to appreciate all the mentorship and dedication he’s put into our Entrepreneurs. Sean has donated over 25 hours of mentorship to our local and regional entrepreneurs by conducting second opinion reviews (SORs) and Local Selection Panels (LSP). Additionally, he’s served on two Endeavor Atlanta Entrepreneur Advisory Boards. 

Most of our entrepreneurs come to Sean for advice on their fundraising, M&A, corporate strategy, and business development challenges. As an operator by nature, he takes pride in supporting early-stage founders by helping them discover their blind spots and navigate as they grow and scale their businesses. His tenacity when it comes to asking the difficult questions while helping founders think big is what has stood out the most. Speaking of questions, we asked Sean a few so you could get to know him better!

What are you looking for the most when the pandemic is over?
Eating out. Don’t get me wrong, I love a home-cooked meal. But I am ready to get back to supporting our amazing local restaurants and sharing meals with friends and business connections.

What is one thing that might surprise people about you? 
I went to a performing arts high school and play(ed) all the woodwinds. (Related: I have also been on the boards of three professional ballet companies.)

What do you think is the next big opportunity for the Atlanta ecosystem? 
I think that 2021 will be the year that Atlanta is (finally!) recognized as the top-tier city for startups and entrepreneurship it has always been. Over the last year, there has been a large increase in available early-stage capital in our city, with the recent launch of a number of new local funds and coastal funds being more active here now that COVID has begun to erode the geographic barriers that have traditionally existed in early-stage investing. Combined with an accelerated inflow of talent to our city and our maturing support ecosystem, the increased availability of early-stage capital bodes well for the health of the local startup scene. As the T-shirt says, Atlanta Influences Everything—a truism that is quickly extending beyond culture and politics into the venture landscape as well.

Sean, thank you for all you do for our Endeavor entrepreneurs, the Atlanta ecosystem, and beyond!

The Endeavor SaaS Model: Selection as a Service

Selection as a Service: How Endeavor’s Selection Process Adds Value to Entrepreneurs

At the end of 2019, Endeavor reached a significant milestone: selecting its 2,000th entrepreneur into the global network. Historically, fewer than 7% of the companies Endeavor screens get selected, leaving many prospective Endeavor Entrepreneurs to wonder: 

What happens if I’m not selected, and is the process really worth the effort?

“After learning about the six to twelve month, multi-staged process, I was pretty skeptical”, reflects Endeavor Entrepreneur Dave Keil, Global COO of Tricentis (formerly CEO of QASymphony). 

Photography by Hannah Cohen

Endeavor’s selection process requires a founder’s two most coveted assets – time and trust. We ask for about a week of effort, spread out over 6-9 months, and dig in on the entrepreneur's personal journey, company vision, and most pressing challenges. Selection into the global network is never guaranteed. Who wouldn’t be skeptical?

When asked what advice she had for founders considering starting Endeavor’s selection process, Anisa Telwar-Kaicker, Founder and CEO of Anisa Beauty advised, “Give it the time and attention it deserves. Talk to someone who has been through it before and understand the takeaways that you want.” For Anisa, who says she’s “gotten a ton of value without being selected,” the Endeavor Selection process is “not about winning or being selected, but about getting feedback on areas of your business from a network of people that has the founder’s best interest at heart.” 

Photography by Featherstone Moments

Here’s how selection works:

Step 1: Getting to Know Each Other

The first step is really understanding the unique story, challenges, and goals of each entrepreneur at the time selection starts. If the founders are committed and Endeavor believes there is a fit to move forward with the process, the Endeavor team scours its global network to find the best mentors to conduct second opinion review interviews.

Step 2: Thinking Bigger with Experienced Mentors

Second Opinion Reviews are an aspiring Endeavor Entrepreneur’s first taste of the Endeavor network. We take great care to select the right mentors that can provide valuable feedback on the entrepreneurs’ challenges and goals.

“We were pushed to think bigger from the very first interview,” reflects Travis Terrell, Co-Founder and Co-CEO of Nashville based Soundstripe, the world’s leading platform of royalty free music for creators. “Endeavor set us up with a very successful music CEO who challenged us to figure out how to build a $1B revenue business and was even willing to connect us to several industry CEOs in his network. It was really eye opening for our team.”

“After my first mentor interview with successful founder and investor Kevin Ryan, someone I tracked throughout my technology career, I was convinced Endeavor’s network had something special to offer and the process would be worth it,” adds Dave Keil. “These people (Endeavor mentors and Board Directors) are completely on the side of the entrepreneur, which was very unique.”

It takes three to five second opinion reviews to determine if the entrepreneurs are a good fit to interview at a local selection panel. 

Step 3: Local Selection Panel

Founders must receive unanimous approval at the local panel (and then again at an International Selection Panel) to be selected into the Endeavor network. Panelists are looking to answer three main questions:

• Entrepreneurs: Can this founder(s) achieve their ambitions, take feedback along the way, and be willing to pay it forward in the future?

• Business: Can this business scale to create significant revenue, jobs and wealth creation in the local ecosystem?

• Timing: Is now the right time for founders to join Endeavor’s global network to super-charge growth?

Panelists will pressure-test business assumptions and provide specific feedback to the entrepreneurs, whether they “pass” the panel or not. They also offer connections within their network that can benefit the founders.

Photography by Jess Amburgey

“Chris (Chris Ramsey, CRO) and I literally spent hours after the local selection panel digesting the feedback. We grew our business so much faster than we would have otherwise based on the advice we received from Endeavor’s mentors,” reflects Endeavor Entrepreneur George Azih, Founder and CEO of leading lease accounting software platform LeaseQuery.

Step 4: An International Event to Remember

The final stage of the selection process, the International Selection Panel (ISP), is a 2.5 day event held eight times a year all over the world, but has moved virtual amidst the COVID-19 pandemic. Some of the world’s top entrepreneurs and investors network and interview founders from Endeavor’s 35 markets. But the environment is very intimate and egalitarian given Endeavor’s merit-based approach.

Courtesy of Endeavor

Kyle Porter, Cofounder and CEO of SalesLoft notes that his Endeavor experience ”really came together at the ISP [he] attended in Ecuador. You interact with amazing founders and Endeavor mentors and board members from all over the world. It provides such a unique perspective on the challenges to scale a business in each market. It’s a true network of peers that are 100% founder focused.”

Photography by Featherstone Moments

“I literally had dinner with Jason Green, one of Silicon Valley’s top venture capitalists, alongside Steve Case, Founder of AOL and Rise Ventures, at my ISP,” adds Andrew McConnell, Founder and CEO of Atlanta based Rented, Inc., a leading revenue management platform for vacation rentals. “The level of access balanced with Endeavor’s founder first approach is truly unique.

What happens if I don’t pass?

Entrepreneurs that do not pass the local or international selection panel are usually asked to come back in the future after achieving certain milestones or implementing specific feedback. The Endeavor team continues to meet with the founders on a regular basis to support their growth.

Courtesy of Endeavor

“I can honestly say their approach and selection process is world-class,” commented Kristin Stafford, Co-Founder and CEO of Vital4, a leading compliance and risk-management software platform. “Although we haven’t been selected into the Endeavor network yet, we gained amazing feedback on our business, found several new advisors, and they introduced us to capital that is helping fuel our growth. It has changed the trajectory of our business, helping us think bigger and scale faster. The Endeavor team continues to meet with us monthly and we hope to come back through the selection process in the near future.”

Endeavor selects first cohort of ScaleUp Birmingham entrepreneurs

Endeavor Atlanta has selected four Birmingham companies for the inaugural cohort of ScaleUp Birmingham: a non-dilutive 6-month program that equips founders who’ve achieved strong product-market fit and high year over year growth with the resources and confidence they need to take their companies to the next level. 

The ScaleUp Birmingham application process included a written application, panel interview with the Endeavor team, and Second Opinion Review with a mentor in the Endeavor network. Candidate companies were rated according to the following evaluation matrix:

• Business Model: Market size, go to market strategy, scalability

• Business Timing: Growth rate, customer traction

• Entrepreneur Mindset: Entrepreneur focus, coach-ability, ambition, “pay it forward” mentality

• Financial Position: Months cash on hand, burn rate, access to capital 

In order to keep the bar high and ensure an intimate experience focused around the dynamic challenges that come with scale, Endeavor selected only 4 of the 14 teams that qualified for interviews:

● Case Status enables law firms to engage and update clients with ease. CEO Lauren Sturdivant and cofounder Andy Seavers (CTO) completed the Techstars Atlanta program in 2018 and moved their headquarters to Birmingham after receiving investment from Alabama Futures Fund in 2019. Their recently announced funding round from BIP capital was well timed as the influx of legal firms adapting to remote work fuels a period of hyper-growth.

● Fledging provides premium electronics for everyone, starting with storage products. Cofounders Weida Tan (CEO) and Steven Robbins (CSO) met at the University of Alabama Birmingham and completed the Velocity Program at Innovation Depot in 2019. Ethan Summers (Director of Commercial Operations) joined the team in June 2019. The rapid and steady growth in sales of Fledging’s flagship product is fueling their dominance on e-commerce platforms and expansion into key peripherals categories such as hubs and docking stations in 2020.
 
● O3 Solutions is an agile project management solution for industrial construction. CEO Josh Girvin previously worked with cofounders Mandi Coker (VP Education & Engagement) and Jared Elliott (VP Product) to scale a company in the same industry before founding O3 in 2016, and the team has leveraged their shared experience to build strong partnerships and customer traction.

●  Smart Alto engages leads and schedules appointments to help realtors achieve their revenue goals. Hassan Riggs (CEO) and Wayne Anderson (CRO) founded Smart Alto and completed the Y-combinator program in San Francisco in 2017, but are both Birmingham natives dedicated to scaling the business in their hometown. Their unique combination of inside sales assistants, live website chat, custom scripts, and text message follow-up increases appointment conversion from 4% to 25% on average, driving $40,000 in increased revenue for the average realtor client.

 While Endeavor’s ScaleUp Program is offered in other Endeavor affiliate offices around the world, each affiliate designs the content based on the needs of their local entrepreneurial ecosystems. The ScaleUp Birmingham program is unique in that it incorporates leadership development from Executive Coach Karen Walker. ScaleUp Birmingham will also match founding teams with a more experienced entrepreneur for ongoing, founder-to-founder mentorship, and plug them into Endeavor's regional network for tactical advice around specific business challenges. 

To customize their ScaleUp roadmap, entrepreneurs will undergo a strategic, growth-focused assessment through EY’s proprietary 7 Drivers of Growth workshop to identify ways to accelerate growth and achieve market leadership. The program will conclude with a mock selection panel in which entrepreneurs sit down with top regional mentors and entrepreneurs and receive tactical, meaningful feedback, and qualifying participants will be invited to begin the selection process for Endeavor’s global network. 

The end goal of Scale Up is to accelerate the growth of high-potential entrepreneur-led businesses and further Endeavor’s mission of scaling up, going big, and giving back.

Birmingham's Heroes: 5 ways businesses have adapted to do well and do good in these unprecedented times

As Endeavor Global Board Director Reid Hoffman pointed out in a recent webinar for Endeavor Entrepreneurs, “one of the interesting things about crises is that they really sort between heroes and villains”. In Birmingham, Alabama, we’re lucky to have a lot of heroes. 

Over the last few weeks, we’ve seen entrepreneurs step up and ecosystem partners rally behind them. Businesses all over Jefferson Country are being forced to adapt in all sorts of ways, very few of them comfortable.

We recently shared how Endeavor’s ScaleUp Birmingham program is adapting to meet the evolving needs of the ecosystem. Today we want to celebrate the many ways Birmingham entrepreneurs are adapting to do well and do good in these unprecedented times.

1. Expanding offerings to meet new needs

Other entrepreneurs have jumped on the opportunity to develop new features or offerings to meet the needs of clients in a post-COVID world. 

• In addition to its core services (Payroll, Compliance, HR, and Employee Benefits), PEO Simpeo is assisting organizations with the Paycheck Protection Loan process and helping small and medium sized businesses adapt to the expansion of FMLA. 

• Kerry Schradar and Ashlee Ammonds are rolling out Virtual Mixtroz and a Progressive Web App to help employers, educators, and event organizers connect people in real-time and provide valuable data from those connections. 

• Wyndy is working with healthcare facilities and other essential industries to cover the cost of babysitting for their workers. Founders Tommy and Ginger Mayfield also brought Wyndy user and infectious disease doctor Dr. Ellen Eaton of UAB on as an advisor to help families navigate and minimize health risks through these unprecedented times.

2. Bringing Birmingham favorites home

Businesses all over Birmingham are adapting to sell online and offering curbside pickup and delivery options for a physically distanced world. A few local brands have taken this a step further with collaborations and digital experiences that let you bring them home in new ways.

• Nourish Foods has stepped up as a partner of local producers and a stellar solution to spring holidays. Find treats from Holmsted Fines, Stone Hollow Farmstead, Alasaw and others in their Southern Charcuterie Box. Pair Mom’s celebratory dinner with an Elia Fulmen 14K gold vermeil "Peace of Mind" charm and chain when you spring for the Ultimate Mothers Day Box.

• You can now pre-order and pick up from local farmers and producers at Pepper Place’s contactless drive-through Farmers Market.

• From BlueRoot’s Supper Club, to storytime with ThankYou books, to virtual sessions with fitness studios such as Ignite Cycle and The Gauntlet, InstagramTV is getting a local twist. 

3. Building on what they’re best at

A number of Birmingham businesses are rising to the challenge of increased demand as the pressures of shelter-in-place orders increase the urgency of clients and users jumping onboard.

• CaseStatus is helping lawyers adapt to remote work with their world class Client Management Platform. The firm is also hosting virtual happy hours for the legal community and hiring for its implementation and development teams.

• Guideway Care continues to support and extend clinical care teams with their technology-enabled care guidance programs. Care Guides have become a lifeline to patients with chronic diseases, and their pre-screening protocol is helping healthcare organizations more quickly identify potential cases. 

• Pack Health was quick to spin up an information hub, capture how COVID-19 is impacting high risk patients in their own words, and offer its services to healthcare workers free of charge. They’ve also partnered with Immediate to provide on-demand pay and financial wellness for their employees

• In addition to hiring more shoppers and full time staff, Shipt is introducing contactless delivery, providing all shoppers with a set of gloves and mask, providing up to 2 weeks of financial assistance to shoppers who are diagnosed with coronavirus or placed under mandatory individual quarantine, and donating $150,000 to FeedingAmerica to help communities in need.

4. Lowering barriers and opening doors

Several Birmingham founders are making it easier to adopt their technology to help clients and workers weather the storm.

• Gary York’s HelpLightning, a merged reality and virtual interaction platform, launched two programs that allow customers to obtain additional/new licenses at no cost.

• Matt Pierce of financial health platform Immediate was quick to coordinate with both his investors and bank to waive all ImmediatePay early access fees during the COVID-19 season. They’ve seen unprecedented adoption among new clients in the healthcare and senior living space and are rolling out a new Return to Work program that will waive all employee transaction fees for the first 60 days.

• Delphine Carter’s Boulo Solutions, a platform that matches talented women with flexible remote jobs, is offering not only to match companies with the right Boulo talent to execute their pivots, but to cover the cost of the part time hires.

• Jim Cavalle of INFLCR is offering free access to their personalized content delivery platform for any collegiate department, professional team, organization, or agency to streamline external communication and engage with fans on social media. 

5. Rallying around the cause

The hashtags #BhamStrong, #BhamCares, and #BhamSupport are catching like wildfire as the community comes together to support healthcare workers and local businesses affected by COVID-19. 

• Local physician Dr. Brandon White gave us a way to help our local businesses affected by the coronavirus pandemic while helping alleviate some of the stress of the pandemic felt by healthcare workers. Local artist Shawn Fitzwater of Fitz Hand Painted Signs teamed up with Vulcan Apparel Company and Battle Republic to raise money for this project by selling custom t-shirts. Now 13 local restaurants and delivery partner Ultra Motorcars are currently delivering meals to 8 hospitals in the Birmingham area!

• Eco-Friendly Design & Print Studio Yellow Hammer Creative has launched a series of t-shirt designs to support local small businesses.

• Local Startups Conserv.io, Fledging, and Purilan Technologies together with Hardware Park, bDot Architecture, PrintSmart, Local Bicycle Racks, TechStars Alabama EnergyTech Accelerator, Stream Innovations, and Red Mountain Makers are repurposing 3D printers and CNC machines to help supply our city with emergency PPE. So far, they have produced and distributed over 750 face shields to healthcare providers in the Birmingham area.

What else are you seeing Birmingham entrepreneurs do to serve customers and community while sustaining their businesses through this crisis? We’d love to hear your stories in the comments below.