Frequently Asked Questions: Program

What is the application process?

Momentum will accept up to five start-ups for its 2011 program. Applications open November 5, 2010, and a complete application with a 90-second video pitch must be submitted by February 5, 2011. The Momentum vetting committee will review the applications and contact the top 25 teams. Each of those teams will be asked to submit a pitch deck demonstrating their idea, and the top 10 to 15 teams must be prepared to come to West Michigan for personal interviews on March 17, 2011.

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Should I bring a business plan to the interview?

No, but you and your team will be expected to expound on and answer detailed questions about your application.

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When will we find out if we have been accepted?

Decisions will be made within days of the personal interviews.

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What if I’m accepted?

You and your team will move to the Grand Rapids area during the second week of May 2011. We will help you incorporate, make initial investments in your company and provide housing assistance. Then it’s time to get to work! Your team will build a functional prototype, test customer adoption, and work on your pricing, messaging and distribution channels. The Momentum Leadership Team and mentors will guide you and connect you with resources that will quickly accelerate you to market, using the lean process principles honed to perfection here in the Midwest. You can expect weekly programming, events and networking opportunities. The program will end with a Demo Day.

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What is Demo Day?

On Demo Day, you will present your technology and business model to potential investors and people who will help you take it to the next level. You may even get another round of funding and resources from Momentum!

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What happens after Demo Day?

A number of things can happen.

  • Momentum may choose to reinvest and you will enter Phase 2 of our program.
  • You may attract the interest of another investor.
  • You may continue to bootstrap yourself to the next level.
  • You may decide to call it a day.

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What type of company will Momentum fund?

We fund Internet technology start-ups. If you’re developing a web-based application, software or service that has a national or global reach, we’d like to hear more from you. We don’t fund medical device companies, biotechnology companies, inventions, consultancies, restaurants or other local service-oriented companies.

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Do you only fund companies that take part in the Momentum program?

Yes, you must apply and participate in all 12 weeks of our program.

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What is the Elevator Pitch video?

Sell us on your idea in 90 seconds! Applicants are asked to post their elevator pitch videos on Vimeo, then submit their Vimeo URL in the application. (Later, we’ll add your video to our Momentum channel on Vimeo.)

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What is the Hypothesis Pitch Deck?

If we ask you to return with a hypothesis pitch deck, it means we see potential in your idea. This is where you share your assumptions on your problem/solution, unique value proposition, unfair advantage, customer segments, cost structure, and revenue streams.

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How does the funding work?

Momentum makes an initial investment of up to $20,000 in your company in exchange for 8% equity. We also cover up-front incorporation costs associated with the seed funding.

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How will this money help me?

The money should cover the development of your prototype and your living expenses during the Momentum program.

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How will my company get incorporated?

We help you become incorporated and cover the up-front incorporation costs.

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What about confidentiality?

Momentum doesn’t sign non-competes, non-disclosures or confidentiality agreements. We can’t, because we see hundreds of ideas, and a lot of them are similar. We won’t share your application beyond our investment committee. Of course, you don’t have to disclose your secret ingredients in your application. Think of it as serving your favorite meal without sharing the recipe.

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What if I don’t live in West Michigan?

We have access to off-campus housing with a number of universities in downtown Grand Rapids. It’s not free, but our funding should cover your housing (and other living expenses). Plus, the housing is within easy walking distance of a bunch of great coffee shops, pubs, restaurants, stores and parks that’ll show you how cool it is to live in West Michigan.

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Do I have to relocate to West Michigan?

Yes, but only for the 12 weeks of the program. We’re here to help you succeed; we can help you best if you engage in all that we have to offer.

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Where will my office be?

Momentum Headquarters is located in the heart of downtown Grand Rapids. Just bring your laptop and we’ll take care of the rest.

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Who’s behind Momentum?

Pomegranate Studios, The Windquest Group, and a community of mentors and advisors who love working with start-ups.

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Do you accept teams without developers?

We highly recommend that someone on your team has the technical expertise to build your product. Twelve weeks goes by very quickly, and your entire team will need undivided focus and teamwork to keep pace with the program. We do accept individual applications from developers who are interested in working with start-ups. We can help facilitate those introductions but encourage you to find someone on your own.

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