Amplifier Ventures to Help Entrepreneurs Launch in a Down Economy

In response to a dimming economy, many venture capital firms have scaled back their current obligations and future investment plans. Faced with hostile capital markets and an absence of exit opportunities, the reluctance of VCs to take on new investments has led to a breakdown in the startup ecosystem, at least according to one local venture capitalist. Striking a decidedly different tone, Amplifier Ventures has announced a new initiative in an attempt to rebuild the investment cycle. Managing partner Jonathan Aberman was kind enough to talk with Contribune about its new Amplifier Business Accelerator Program.

The program will offer six existing DC-area businesses an initial investment of up to $50,000 plus a host of intangible benefits: private bi-weekly meetings with managers of the program to direct and track progress of the business’ development, exclusive members-only classes taught by recognized experts on a variety of topics of interest to growing businesses, access to numerous networking contacts and relationships mediated by program leaders, and a continuing relationship with Amplifier Ventures after conclusion of the program.

While the program’s basic structure might seem similar to LaunchBox or CTI’s GAP Fund (two programs whose vision the Amplifier Ventures team fully supports), Aberman pointed out a critical difference. Unlike incubator programs whose focus is on creating new business models, the program targets ventures with existing business models that require additional resources to scale successfully.

Aberman stressed that the program’s goal is that an infusion of capital and expertise will have a meaningful effect on the trajectory of the businesses.

We’re just trying to find the best six businesses to help, where we can make a material difference. The money’s not a lot, and we’re not taking a big ownership stake — it’s far from that — it really is a sweat equity deal on our part. It’s got to be a business where we can make a difference in three months. Those are the kind of companies we’re looking for.

Successful applicants to the program will benefit not just from a quick infusion of funding, but from the deep pool of knowledge and experience found within the Amplifier community.

$50,000 and some good experienced help is more useful in many circumstances than $500,000. It’s a better way for my team to spend our time now…developing relationships that will help people get through this time, and who will be part of our network when the economy gets better.

Some observers might be surprised that a group of investors would eagerly roll out a new initiative in a time of grave economic uncertainty.  Aberman and his partners think now might be the perfect time to make a big difference with a small amount of capital and a personal touch. In fact, Aberman sees the program as an opportunity to combat the present negativity in the business community.

Entrepreneurs are very optomistic people. There is so much negativity; I want there to be a positive force for people to respond to – to help people get their strength back.

So far, the response to news of the program’s launch has been quite positive, indeed. In fact, Aberman himself has been surprised by the variety of companies that have responded. In addition to the expected web startups, Aberman noted that he’s seen applications from clean tech, life sciences, and consumer products, among others. Because this is a new venture, the program is actively soliciting applications from teams of various sizes and experience, and from businesses at various stages of maturity. Amplifier Ventures is eager to match their resources with the specific developmental needs of the businesses with which they work.

If the best opportunity is a tech product with an entrepreneur who could use an experienced manager, we know lots of guys right now who’d be happy to do a new startup if it was interesting – we can do some matching up.

Aberman is particularly excited about working within the local DC startup community. Like many local entrepreneurs, Aberman feels that breadth and promise of the DC startup community is highly underrated.

Nobody’s ever done this in DC before. Nobody’s ever come up and said, ‘I don’t care what your business is, let’s start there and see if we can make something happen in a bad economy.’ Since nobody’s ever asked the question before in Washington, let’s see what comes out of it.

To learn more about Amplifier Ventures Business Accelerator Program, view the program details or join the Amplifier Network startup World community.