Apps are open. Here’s why you shouldn’t miss out on Techstars Retail’s next class

To all the founders, funders, and friends out there, I have a simple message: There’s never been a better time to get into the retail tech space than now.

And there’s never been a better place to do it than in Minneapolis with the Techstars Retail Accelerator with Target. Applications open January 8 for our 2018 class (APPLY HERE).

Here’s why we’re so stoked about our program (and our city).

Since we launched in 2015, we’ve seen amazing growth—and helped reinvent Minneapolis in the process.

So far we’ve worked with 20 startups and built a community of 150 retail-specific mentors. In 2016, we saw our startups raise $25M in funding, and Target rolled out team Inspectorio’s factory-inspection tech worldwide, while Branch raised over $10M. Last year, we built off that momentum, disrupting spaces from warranties to food-delivery with our companies, all while growing our top-notch network of engaged mentors and retail executives.

That’s taught us that despite the daily predictions of doom and gloom for the industry, retail is still ripe with opportunity for disruption and innovation, and retailers of all stripes want to engage with Techstars Retail startups to find out what’s next.

This momentum has helped reinvent Minneapolis, turning it into the national leader in the retail tech space, and an anchor for the Midwest startup scene.

We’ve been there every step of the way, and we want you to join us. You can find the app for our next class HERE.

This ain’t flyover country any more. It’s fly-here country. Let’s make something great together.

Onward!

Ryan

 

What Actually Motivates a Corporation to Pilot with a Startup?

Working with a corporation can offer all kinds of opportunities to a startup. It lets you test new functions of your app, figure out implementation techniques, and, most importantly, learn from and build a lasting relationship with a potential partner.

I’ve watched this process first-hand at the Techstars Retail, where many of our startups have run successful pilots with major retailers. We kicked off our second class on July 17, and I’m watching our latest class set themselves up for potential pilot opportunities in the near future.

Sadly, many pilots end up failing, and I think one of the main reasons is startups do not clearly understand the motivations of their pilot partners.  

So, why would a corporation run a pilot with a startup?

  1. Learning – None of us knows everything, even in our own field of expertise. Pilots let corporations explore areas of strategic interest without betting the whole house on something new or unfamiliar.
  2. Testing – A pilot lets a corporation test your startup’s idea, and whether a potential partnership is actually feasible and worthwhile for it.
  3. Assessing Workflow – Few things derail a partnership faster than two systems that just don’t work well together. You want to be peanut butter and jelly, not peanut butter and…sushi. A pilot gives you a way to better understand the contours of a potential relationship without risking too much.
  4. Employee Motivations – While the corporation’s strategic motivations get you in the door, the motivations of the employees you’ll be working with are what ultimately get you the deal.  Always ask yourself, “Does the success of this pilot somehow influence your internal champions’ bonus?” If the answer is “yes,” you will have much higher engagement.  If the answer is “no,” you may not ultimately have a path forward with this company.
  5. Find Budget – Running a free or discounted pilot allows the testing to move forward while a corporation actually finds budget for a larger roll out. Sometimes this is just a matter of budget cycles, but it could also be budget reprioritization, which takes longer.
  6. Customers – In a B2B pilot, it’s ultimately your customer’s customers who will vicariously sustain your business—i.e., if your customers die, you die. A good pilot can teach corporations more about their customers, and whether your product helps serve them better. That’s the ultimate return on their investment in you.
  7. Iteration – In addition to thinking big picture, pilots also teach you what granular tweaks separate good ideas from great ones. In a pilot, you can experiment with what changes to a product bring the best results, and what trainings for employees supercharge adoption and boost impact.

Now that you (hopefully) understand the motivations behind piloting, how do you actually pull off a successful pilot? Check back soon as we lay out the key steps to actually implementing a successful pilot.

Onwards!
– Ryan

 

Techstars Retail with Target: Driving Innovation for Retail

I’m excited to announce that we’ve opened applications for the 2017 class of Techstars Retail in partnership with Target. You can apply online by going to www.techstars.com/apply. Applications are open through April 9th and the program starts in July.

Watch this video for a great overview of the program.

Recapping Last Year

In case you missed it, our first year of the Techstars Retail accelerator was a massive success. We had 11 startups from all over the world descend upon Minneapolis for the summer.  They received mentorship throughout the program from Target’s senior leadership, successful retail-tech entrepreneurs, and investors from across the country.

Our Demo Day was a blur but it was incredibly exciting to see almost 1,000 investors, mentors, Target team members, and supporters from all over the Twin Cities startup community show up and support our companies.

And wow — did they kill it! Here are some highlights of what was accomplished by our startups during the program:

  • Nexosis – Announced the company saved more than $90,000 in one location in a pilot with Pepsi this past summer and they are integrating into the Shopify e-commerce platform. They recently announced closing a $5M Series A round
  • Branch – Shared the results of their successful pilot program with Target stores and plans to move headquarters to Minneapolis. Branch is will soon announce the closing of their seed round.

Since our program has wrapped up, our companies have already collectively raised almost $15M, with another $5M to $10M coming soon. Stay tuned, as many more partnerships and deals are in the works to be announced this year.

What to expect in 2017

For 2017, we expect to once again find the top Retail Tech startups from around the world and welcome them to Minneapolis for the summer to our beautiful working space located, literally, within Target HQ.  

Have a disruptive retail technology startup?  We’d love to chat.  We’ll be visiting New York City, Cincinnati, Toronto, Waterloo, Minneapolis, Seattle, Portland, Miami, Austin, Washington DC, Boulder/Denver, San Francisco and Los Angeles to discuss our program. Simply send an email to ryan@techstars.com to coordinate.

All in all, it was an incredibly successful first program and we are already looking forward to the next! Apply here.