Startup Rounds is an online business competition and product accelerator that gives power to consumers by letting them crowdfund what they believe are the best ideas. The company has narrowed their current competition down to 10 startups. They will be announcing the winners on January 27, 2015 at the Microsoft New England Research and Development Center in Cambridge, MA. One of the company’s co-founders, Paul Hammond, explains:
“We are creating not only a funding space, but a platform where customers are empowered to be the judges, essentially democratizing business competitions to let the people who use these products determine the most deserving winners.”
The company’s other co-founder, Daniel Sandland, is the founder of JobAware – a job search app for i0S with high user ratings. With this new venture the team’s mission at Startup Rounds is to help deserving startups get product validation by offering pre-sales to customers at great prices. At the same time startups are also given access to mentoring, funding, and other tools to help them succeed. Past winners have gone on to compete at Y Combinator and other accelerators.
The top three contenders this round include: 1) Freight Frog, a micro-moving company that aims to make moving more affordable and eco-friendly, 2) Karma Crew Yacht Charters, LLC, who want to “restore a ’65 1948 Grebe Classic Motor Yacht for chartering and a Bed and Breakfast at Sea … on Boston Harbor,” and 3) Hunter Green, watches made using non-GMO, non-toxic materials and corn resin, which is biodegradable and environmentally friendly.
Applicants are screened using several criteria: the startup needs to have a working prototype of their product, have a visually compelling profile and product (with video, images, and logo), and have made no more than $1M in annual revenue or equity based investment. This is to help ensure that projects chosen have shown proper need and innovativeness. If a project application is not accepted, the team gives the creators feedback on what needs work and holds the application for future competitions.
One of the interesting aspects of Startup Rounds’ crowdfunding model is the way that consumers are encouraged to become influencers and choose which startups they want to succeed. Unlike most crowdfunding sites, success doesn’t just come down to the dollar – projects are also awarded points based on the merit of their contributors. The more projects supported by a backer, the more points their dollars are worth in competitions (because it suggests they aren’t just on the platform to support a friend but actually like the product).
The round starts with many entrepreneurs applying to pre-sell on the platform before a Top 50 is chosen. They are then narrowed down to 25. For the final round, “Startup Rounds invites ten elite startups from more than ten industries to compete at the Microsoft NERD Center for $30,000 in cash and over $100,000 in resources.” The final competition gives the companies the opportunity to attract more investments and gain access to advice and guidance from the company’s sponsors, which include Pepper Hamilton LLP and Samuel Goldstein & Co.
