A few weeks ago we were contacted by Chirag Pancholi, a Roach Post follower and fellow tech entrepreneur. One of the things Chirag mentioned in his email to us was that his company (which is currently in stealth mode) had gone through the Founder Institute program. In fact, they were a member of the inaugural Palo Alto graduating class.

For those who may not know, the Founder Institute is an incubator program geared towards very early stage tech startups. The program centers on sessions focused on pertinent topics like corporate structure, liquidity events, ideation, strategy, etc., led by a good collection of successful tech startup CEOs (e.g., Aaron Patzer, Founder & CEO of Mint.com). At the end of the program all the companies are introduced to a group of local angel and venture investors. The cost to enroll is $800 and 3.5% of your company’s equity, the latter of which you are “asked” to contribute towards a Founder Institute common pool

I asked Chirag to write an account of his experience at the Founder Institute. There’s been a good amount of press around FI and it’s founder Adeo Ressi since the program’s launch last year, and on it’s face it appears to be a good addition to the handful of other programs geared towards early stage (i.e., napkin-stage) startups. However, nothing beats a firsthand account.

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Why I chose the Founder Institute

By Chirag Pancholi

Our journey to build a world-class startup included a very important step –that is being a graduate of a professionally managed incubator.  While not every startup requires an incubator, I felt it was important to get the formal training and tactical assistance from a community of likeminded folks.

Back in the 90s there was Idealab and a number of others that caught the wave of the dotcom bubble.  Today there are a new coterie of incubators; The Founder Institute, Y-Combinator and SeedCamp to name a few.  Some even provide funding (seed level <$100K), while others do not.  But all provide a jumpstart to new “startupers”.

I chose The Founder Institute – now a global incubator that launched in 2009.  I was fortunate to be selected to be in the inaugural class of The Founder Institute in Palo Alto, CA.    While the process of acceptance was demanding – a battery of IQ and EQ tests followed by interviews, and a fairly thorough professional background check, the journey was well worth it for me.

So, why did I choose an incubator?

Simply put, I chose to apply to an incubator to quickly employ the detailed elements of starting a business, and to shorten the time to launch.  I also wanted to make sure that I did not spin my wheels focusing on the wrong things (like 5 year plans).  Incubators have a knack for forcing entrepreneurs to focus on the immediate and tangible.

Why did I choose the Funded Institute?

I chose The Founder Institute because of two reasons: 1) legitimacy and 2) tactical help from real CEOs of real companies.

The program is structured such that everyone involved is constructively aligned to help each other build great companies.  Participating entrepreneurs and mentors are bound by confidentiality agreements and an innovative warrant sharing program which gives each entrepreneur and mentor stake in the success of each others’ efforts.

The curriculum is structured into weekly sequentially compounding sessions taught by CEOs of well-known startups.  Weekly topics ranged from ideation to liquidity events, branding to operational metrics.  Each week has assignments that are tangible to building the business—things you have to do to make a great company.  In the process, introductions are made to investors as well as top-flight lawyers who will help incorporate the business appropriately.  By the end of the program, the entrepreneur has been able to go through all the steps needed to create a company.

I recall a key interaction that shaped the way I approached team building.  I was able to chat in the hallway with Aaron Patzer (CEO of Mint.com) about how he was able to recruit and retain key team members at such embryonic stages.  Having these types of close (unforced) interactions and sessions was very helpful to my fellow FI founders and I because we got candid and personal attention from folks who had “been there and done that.”

I would personally recommend the FI for entrepreneurs who fit the following profile:

• Pre-funded
• Idea generated but needs focus and sharpening
• Entrepreneurs thoroughly intent on building a great company
• Entrepreneurs who don’t have a large network of VCs, or Lawyers or other service providers
• Entrepreneurs who think they are onto something, but don’t know how to get tactical traction.
• SW, HW, retail and any type of business model in between.

Our company is in stealth mode because we are still tweaking on some features and need the “elbow room” to work on them.  But, we aim to employ the skills learned as a portfolio company of The Founder Institute soon as we bring our services to the world.