AlphaLab FAQs

1) What is AlphaLab?

AlphaLab is a startup accelerator focused on launching innovative software, web services, mobile, gaming, and agile hardware startups quickly and successfully.

Created by Innovation Works, AlphaLab provides funding, hands-on business assistance, advisors, services, and office space to up to six companies at a time through an intensive program.

AlphaLab helps companies rapidly develop early versions of their product, reach the critical stage of initial customer feedback and validation, and hone their go-to-market strategies.

2) What is Innovation Works?

Innovation Works (IW) is the Pittsburgh region’s largest and most active seed-stage investor. Since the creation of its seed fund in late-1999, IW has invested over $50 million in almost 140 technology startups in the Pittsburgh region – a track record that places IW among the most active seed-stage investors in the United States.

IW is a private non-profit corporation, which is largely funded by the Commonwealth of Pennsylvania’s Ben Franklin Technology Development Authority.

The IW portfolio is comprised of many of the most promising high-growth technology companies in the Pittsburgh region.

To date, these companies have been successful in attracting over $1 billion in follow-on funding from VCs, angels and other investors. IW’s combination of capital and expertise helps companies move quickly and effectively to commercialize products, gain customers, and form relationships with investors and advisors.

3) How is AlphaLab different from other investors? Startup accelerators?

Program Structure

To accomplish AlphaLab’s goal in helping companies develop and launch innovative web, mobile, gaming, and hardware-based ventures, both fast and effectively, the program is structured in a certain way.

AlphaLab’s 20-week immersive program is longer than most startup accelerators to give your company the opportunity to gather more feedback and go through more iterations before presenting to a large audience of potential investors at AlphaLab Demo Day.
No more than six companies at any one time are in the program to ensure startups receive ample amounts of attention and hands-on assistance from our team and network.
An interim Demo Day takes place in the middle of the cycle to both act as a marker of progress and to prep companies for the AlphaLab Demo Day.

Relationship with Innovation Works (IW)

Companies in the program have access to the expertise and contacts at one of the nation’s most respected and active seed-stage investors. IW’s seed fund is also a potential investor in promising AlphaLab companies.

Working Space

Each company participating in the program receives their own office space in addition to the collaborative working space shared with fellow companies. Essentially, this setup essentially gives you the best of both worlds: privacy and the ability to easily bounce ideas off others at any point in time. And because AlphaLab’s space is a hub of events dealing with entrepreneurship and technology, on any one day, merely stepping outside of your office gives you the opportunity to meet the connections that just may help you take your business to the next level.

4) How can we apply to be part of AlphaLab? Do we need a business plan?

Just fill out the online application before the deadline. No business plan is required. (See question #5 for more information regarding how far along we like our applicants to be.)

5) What kinds of companies do you accept? Do you think our company is too early/too late to apply?

We get this question a lot. So much so that Jim Jen, Director of AlphaLab, has written a blog post on it, Too Early, Too Late, Or Just Right: When is my company ready for AlphaLab?

The short version? We're looking for any capital-efficient company in the software, web, mobile, gaming, or agile hardware space comprised of driven entrepreneurs that will be able to reach significant milestones (e.g. a working version for customer feedback, early customer acquisition) during their time in the AlphaLab program.

Odds are your company isn’t “too early” of a stage to apply--we have accepted companies still in the ideation phase of development. And you probably aren't "too late"--we've had companies come into our program with a few paying customers secured. Basically, we will accept any company we feel would benefit from the acceleration in growth and development the AlphaLab program provides.

6) Do we have to be developing a software product to be considered for AlphaLab?

We are looking for the best companies and concepts that can make rapid progress and reach critical product and market development milestones (e.g. a working version for customer feedback, early customer acquisition) in a short amount of time with a $25,000 investment.

Software, web and entertainment technology-based startups have traditionally best fit these criteria but we are open to your idea - an agile hardware product, for example, would be a great match for our program.

7) Does our company need to be incorporated?

No. If you are accepted into the program, we will help you think through issues surrounding incorporation and also connect you with experienced legal providers our companies have worked with before.

Through Cohen & Grigsby's AlphaLaw program, all AlphaLab companies participating in the program will be eligible to receive complimentary legal services and documents (e.g. certificate of incorporation, restricted stock purchase agreement, stockholders agreement, proprietary rights agreement) from the firm, and have the option of working with C & G at favorable rates post-AlphaLab. Read more about the AlphaLaw program on this blog post.

8) Will you sign a non-disclosure agreement (NDA)?

We look at hundreds of business plans each year. We don’t sign NDAs, but we will work with you to find the balance between understanding your company’s unique advantage without requiring you to divulge proprietary information. In your application, please avoid disclosing any technical information that you consider to be your ‘secret sauce,’ but be as clear as possible about your competitive advantage.

9) What's the selection process like?

A review committee consisting of our advisors, investors, and the AlphaLab team will review all of the applications and select a subset of the companies for in-person meetings. After the face-to-face meetings and follow-up due diligence, we will select the companies based on the concept's originality, the technology’s market potential and the teams’ ability to develop and launch a winning product/service.

10) How is the investment structured?

Innovation Works receives 5% common stock in the company in return for the $25,000 AlphaLab investment, plus space and services. More important than financial return, however, is the opportunity for AlphaLab and Innovation Works to help create the next great technology companies in Pittsburgh. As a non-profit, any financial returns to Innovation Works are re-deployed into the community to support future generations of technology entrepreneurs.

11) Where are you located? What is the office like?

AlphaLab is located at 2325 East Carson Street in the heart of Pittsburgh’s historic Southside neighborhood. Conveniently situated between coffee shops, restaurants, and other startup tech companies, our space has become a local hub of entrepreneurship and tech-related activities.

AlphaLab’s 5,000 square foot facility contains individual offices for each company, open space for working or collaborating, conference rooms for large/private meetings, and a full kitchen.

You can check out our Flickr page to get a better feel for the atmosphere.

12) Do we have to stay in Pittsburgh after the program ends?

Companies are expected to remain in the Pittsburgh region after the end of the AlphaLab program. Our goal is to help you build a successful technology company and to add to the critical mass of flourishing tech companies in the Pittsburgh region. We believe that Pittsburgh is a great place to build a company and after your experience at AlphaLab we are confident that you will agree.

13) What happens if our company fails?

We recognize that not all startup companies succeed. While we want to give you every chance for success, sometimes market and customer feedback says otherwise. In that case, it’s better that you had the opportunity to find out that data earlier and more cost-effectively than might have otherwise been possible. And we believe that your experience with AlphaLab will be extremely valuable for your next venture.

14) Tell me more about AlphaLab's educational sessions.

Once or twice a week, speakers are brought in to talk exclusively to our companies about their areas of expertise. We try to bring in a diverse group of speakers who can cover a wide range of topics—sales, investment, design, branding, accounting--all startups need to be thinking about.

Previous speakers have included: Josh Kopelman, Phin Barnes (First Round Capital); Sean Ammirati (ReadWriteWeb); Brad Burnham (Union Square Ventures); Ed Engler and Steve Robinson (Pittsburgh Equity Partners); Lynsie Camuso and Josh Dziabiak (Showclix); Eric Koger and Adil Wali (Modcloth); and Tom Marchok (Intel Capital).

15) Tell me more about Pittsburgh. Why is it a good place to start a company?

Named America’s Most Livable City for the past two years due to cost of living, crime rates, jobs, and entertainment, Pittsburgh has transformed itself from its manufacturing past to a vibrant and green community characterized by arts, culture, and technology.

Home to over a dozen great universities (including Carnegie Mellon University, University of Pittsburgh, and Duquesne University), Pittsburgh has many opportunities for talent acquisition, causing many high-tech companies (including Google and Apple) to begin establishing presence here.

Networking opportunities are aplenty, with many of the tech, design, and social media events taking place in AlphaLab’s very own space. (See a list of local tech events here.)

For more on what makes Pittsburgh a great place to start a business, we suggest you read Sean Ammirati's (ReadWriteWeb COO and AlphaLab advisor) blog post, Why I Love Pittsburgh.

16) Whom should we contact with other questions?

Send an email to info@alphalab.org and a member of our team will be happy to answer any additional questions for you.

Look for information regarding upcoming Office Hours and other open events on our Facebook page or through Twitter.