7 Things to Make Your Incubator Application a Winner

As one of the top 5 startup incubators in the United States, EvoNexus, has combined capital raised and acquisition outcomes approaching $1 billion. Its founder, Rory Moore has seen thousands of deals and only selects those that are the best of the best.I recently sat down with Rory to get insight as to what he looks for when selecting startups.You see hundreds of applications, what is it exactly that you are looking for?Moore: The biggest thing we look for are companies who know how to time things right. It doesn't matter how great your team is, how much money you have, or how much Intellectual Property you have. If the timing is not right with the market, nothing will happen.We see a lot of amazing research from the government and university research levels, but the timing is not always in line with what the market wants. The business opportunity must be timed just right, and we look for signals from the entrepreneurs about how aware they are of this dynamic. Timing is key, as long as there is a strong team who can execute. As AOL founder Steve Case puts it, “vision without execution is hallucination.”You mention a strong team. Can you share what you look for in a team?Moore: We look for founders with domain expertise in what they are trying to build. Founders require real industry experience, but occasionally they lack the proper experience for their startup. Applications from first-time entrepreneurs are put in the higher risk category, but if they are coachable and dedicated, we can work with them.Assuming the timing is right and the jumper is a domain expert, what do you look for next?Moore: How the startup will make money. It might not be obvious at the start. Google was a search engine for years, building users and a brand before they discovered what would generate revenues that scaled. Know how you plan to make money, but be open to this changing as you grow.With almost $1B in funding and outcomes for the EvoNexus portfolio companies, you have picked some real winners. What is one thing new applicants must have to get accepted into your incubator?Moore: To quote Dr. Andy Grove (founding team and early CEO of Intel), “Only the Paranoid Survive.” Startups must have incredible work ethic. There are no short cuts. It’s not an ordinary 9-5 job, it’s 24/7 of physically working and keeping business on your mind. Your worst nightmare as far as competition is another startup working in stealth mode and discovering that their solution is better than yours.Run fast, work smart, hire the best. Iterate fast and often, raise capital (more than you believe you will need) and know exactly what you customer needs and can’t get. To quote my co-founder, Dr. Ron Reedy of Peregrine Semiconductor, “Use the rule of pie.” It will take 3.14 times longer than you plan and 3.14 times more money than you think you will need.”From a non technical standpoint, what should startups focus on when applying?Moore: Being open and honest. This is crucial. Investors prefer brutal honesty over anything else. If your idea is nearly impossible to pull off, then own that fact. To quote FPGA inventor and Xilinx co-founder, Bernie Vonderschmidt, “The risk protects you.” The riskier the idea, the more barriers to entry your competition The applicants that are very open and honest about the difficulties they will face get our attention.How can startups stand out among all of the applications?Moore: Do your homework. When you present your venture, for us or for anyone else, you can’t just know your idea and how it works. You will be asked by investors about your sector, the competition and the science that is being worked on outside of your sphere. We want to know more than the key elements of your technology. We want to understand why it is going to be something that will be needed in five years and ten years. You have to prove that it has legs by understanding the industry and how the technology will stay relevant.An example of this from the early days was ecoATM, a Kiosk that recycles cell phones, which went on to be acquired by Outter Wall (formerly Coinstar) for $350 million. When they pitched us, they could tell us everything about the entire cell phone salvage and refurbishing business. They knew what happened to each and every piece of electronics that come out of cell phones, including countries that were the biggest violators of sending electronics to landfills. They definitely did their homework and this made them stand out. It was a big reason why we took them on. Research everything you can about your idea.Finally, how important is a startup’s presentation in the application process?Moore: Stop thinking that there is a magic formula. People have been admitted after showing only five slides. The ability to stand up and articulate the vision dynamically and compellingly is the most important piece of any presentation. Describe the vision of what you are doing with conviction and passion, but with a real degree of honesty. Say what you believe. Let me know where you want to go and let me know that you will probably have three to four near death experiences along the way.