A New York tech startup, RockThePost, is aiming to revolutionize seed funding for other tech startups. If it proves a success, the number of vacancies for tech product managers in the Big Apple could expand significantly.
Online pitching to multiple investors
Launched in October 2010 as a donation-supported crowdfunding platform, RockThePost capitalized on the implementation of the Jumpstart Our Businesses Startup Act in March to remodel itself as an equity-based site. Essentially, it lets up-and-coming New York tech firms pitch live online to a huge audience of accredited investors. These digital demo days are scheduled on a monthly basis, giving rising firms access to a raft of potential investors in one fell swoop.
It’s a simple but potentially transformative idea, and product managers and others seeking media jobs in the city’s burgeoning tech sector are likely to be amongst the beneficiaries. The first digital demo took place on Tuesday July 30th, and the four firms selected to make a pitch before the assembled investors had commended themselves by trending strongly on the startup’s investment platform.
Tuesday’s investor lineup included a mix of angel funds and venture capitalists, amongst them Battery Ventures, Charles River Ventures and FirstMark Capital.
Instead of the traditional method of approaching investors one at a time, RockThePost’s platform promises to give up-and-coming firms a major leg-up in one go. The startup’s co-founder and CEO, Alejandro Cremades, explained:
“In the offline world, it takes, on average, eight months to close a seed round. Now, the fundraising process is being brought online and it is being streamlined in a way that lets entrepreneurs get in front of hundreds of investors.”
Product managers ambitious for their firm’s success will probably feel a surge of gratitude. One of the tech startup CEOs pitching on Tuesday, 39-year-old Matthew Tolin, said that he’d spent a vast amount of time to date raising funds for his firm wireLawyer, which is based in New York’s Meatpacking District. It usually involves “knocking on doors, emailing and going through your network,” he said.
He was optimistic that he’d raise an additional $300,000 on Tuesday, adding, “It’s definitely possible with the caliber of investors they have put together.”
So far, for a monthly fee of $99, RockThePost has helped ten NY startups secure $44.1 million.
This idea has got wings.