Brief Snapshot on the Impact of Hawaii Accelerators Over the Last Four Years.

1. Tarik Sultan
Managing Partner, XLR8UH
Managing Partner, Sultan Ventures
Treasurer, Hawaii Venture Capital Association
State of Startup Paradise
Brief Snapshot on the Impact of Hawaii
Accelerators Over the Last Four Years

2. Disclaimer:
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@sultanventures
Data was collected and aggregated from four different accelerator programs in less
than a week to produce this snapshot of the Startup Paradise ecosystem.
Each entity tracked, defined, and interpreted their metrics slightly differently, using
self-reported data (both from their portfolio startups as well as from themselves). This
data snapshot therefore very likely contains inaccuracies.
The key takeaway from this presentation is that despite the fact that the numbers may
not be exact, there is an overall positive trend developing in our ecosystem, Startup
Paradise.
Finally, as with any venture fund, and especially with accelerators, the Power Law plays
a significant role – i.e. a few outlier companies that are outperforming are raising the
average for the rest of the startups. While, those outliers are exactly what the venture
capital sector is seeking, they do skew the results fairly significantly.

3. Background

4. Startup Paradise: What are Accelerators?
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Incubators Angel Investors Accelerators
Duration 1 to 5 years Ongoing 3 to 6 months
Cohorts No No Yes
Business model Rent; non-profit Investment
Investment; can also be
non-profit
Selection Non-competitive Competitive, ongoing Competitive, cyclical
Venture stage Early or late Early Early
Education
Ad hoc, human
resources, legal
None Seminars
Mentorship Minimal, tactical As needed by investor Intense, by self or others
Venture location On - site Off - site On - site
Table Courtesy: Cohen, Susan. “What Do Accelerators Do? Insights from Incubators and Angels.” innovations 8.3-4 (2013): 19-25.

5. SULTANVENTURES
@sultanventures
Startup Paradise: Circa 2011
FOR MORE INFORMATION ON STARTUP PARADISE EMAIL INFO@SULTANVENTURES.COM

6. Startup Paradise: Origins
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2012 2013

7. 4-Year Results

8. Startup Paradise:
Four Year Accelerator Impact
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Startups Total Startups
Includes data from four Startup Paradise Accelerators@sultanventures

9. Startup Paradise:
Startup Type
SULTANVENTURES
Includes data from four Startup Paradise Accelerators
@sultanventures

10. Startup Paradise:
Startups vs. Total Capital (Revenue + Funding Raised)
SULTANVENTURES
Includes data from four Startup Paradise Accelerators
TOTALCAPITAL
000s
STARTUPS
@sultanventures
4818
96
145

11. Startup Paradise:
Average Capital per Startup
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Includes data from four Startup Paradise Accelerators
AVGCAPITAL000s
@sultanventures

12. Startup Paradise:
Startup Status
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Includes data from four Startup Paradise Accelerators
STARTUPS
Dead Zombie Growing Exit (Acquisition, IPO, etc.)
@sultanventures

13. Startup Paradise:
Average Capital per Startup, Less Dead
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Includes data from four Startup Paradise Accelerators
AVGCAPITAL000s
@sultanventures

14. Startup Paradise:
Average Capital per Startup, Less Dead + Zombie
SULTANVENTURES
Includes data from four Startup Paradise Accelerators
AVGCAPITAL000s
@sultanventures

15. Startup Paradise:
Average Investment Dollars Deployed per Startup (Hawaii vs Non-Hawaii)
SULTANVENTURES
Includes data from four Startup Paradise Accelerators
TOTALCAPITAL
000s
@sultanventures

16. Startup Paradise:
Investment Dollars Deployed (Hawaii vs Non-Hawaii)
SULTANVENTURES
Hawaii Non-Hawaii
Includes data from four Startup Paradise Accelerators
TOTALCAPITAL
000s
@sultanventures

17. Startup Paradise:
Hawaii vs. Non-Hawaii Startups (Revenue + Funding)
SULTANVENTURES
Hawaii Non-Hawaii
Includes data from four Startup Paradise Accelerators
TOTALCAPITAL
000s
@sultanventures

18. Startup Paradise: 4-Year Summary
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@sultanventures
Total Hawaii Non-Hawaii
Startups 145 87 58
Jobs Created ~1000 >400 >500
Investment Deployed $10.6M $4.2M $6.4M
Avg Investment per
Startup
$73.1K $48.5K $110.0K
Funding Raised $207.3M $62.2M $145.1M
Revenue Generated $44.8M $11.2M $33.6M
Total Capital
(Funding + Revenue)
$252.1M $73.4M $178.7M

19. Today

20. SULTANVENTURES
@sultanventures
Startup Paradise: Circa 2011
FOR MORE INFORMATION ON STARTUP PARADISE EMAIL INFO@SULTANVENTURES.COM

21. SULTANVENTURES
@sultanventures
HIR
FOR MORE INFORMATION ON STARTUP PARADISE EMAIL INFO@SULTANVENTURES.COM
Startup Paradise: 2016

22. Startup Paradise:
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Startup Paradise:
National Headlines

23. Moving Forward

24. Startup Paradise:
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• Partner Organizations
– E.g. corporate involvement
• “Quality” Applicants > Quantity
– IP (patents, copyrights, and trademarks)
– Teams with college degrees
– Teams with prior (for-profit) experience
What Improves (Accelerator) Program Performance?

25. Startup Paradise: Ideas Moving Forward
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Increased Corporate Engagement
Focus on Hawaii strengths in high tech, STEM industries
Focus on the Human Capital
Support and Invest in Education
Support and Promote Commercialization at UH
Invest your time and provide guidance to a startup
Encourage legislation to create an investor and startup friendly State

26. Startup Paradise: Conclusion
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This presentation only skims the surface of the overall startup ecosystem activity that is occurring
in Startup Paradise Hawaii.
We at Sultan Ventures look forward to collaborating with future reports that include more data
and detail, not only in terms of startup / investment activity, but also in terms of all of the holistic
elements that create a successful ecosystem including activity from Co-Working / Incubator
spaces, Government, Educators, Non-Profits, Startup Initiatives, and other supporting entities.
We hope this presentation sparks greater interest in Startup Paradise and ignites efforts of
others to generate reports with more comprehensive data.
And finally to all those involved in the startup community, locally and nationally, we hope this
presentation helps shines some light on the amazing progress and momentum we have here in
Hawaii.
Aloha from Startup Paradise!

27. SULTAN VENTURES