Two years ago, the Alchemist Accelerator started with the goal of creating a platform to help promising enterprise seed-stage startups. The accelerator has announced $2.1M in funding that should give enough capital to keep the company afloat through the first quarter of 2018.
The round is led by Mayfield (the Menlo Park-based venture capital fund, not the dairy product company) with help from Tyco and previous investor Cisco. Other investors include Draper Fisher Jurvetson, Foundation Capital, Khosla Ventures, Salesforce, SAP Ventures, Siemens and US Venture Partners.
Danielle D’Agostaro, Alchemist partner, VP of operations in an email:
“The fact that Mayfield — which is one of the oldest, traditional enterprise-focused venture funds — is putting a stake in the ground is intriguing.”
This really isn’t about money. Participating companies get $30,000 for six months, but they get trained on customer development and fund-raising. They get to test and refine their ideas with companies like Procter & Gamble, Siemens and Samsung. They can meet with these companies and drive their proofs of concepts, get meaningful critiques and help them focus their ideas.
So far, their results have been impressive. Since their January 2013 launch, three acquisitions have occurred thanks to them, including Cisco’s acquisition of Assemblage and Dropbox’s grabbing of Mobilespan last June.
According to the accelerator, half of the remaining 30 companies have gone on to get funding with an average raise of $2 million.
The problem culminates in their Demo Day in which participating companies get to show off their work.
The announcement also included new faculty members including former O’Desk CEO Gary Swart, former DocuSign CEO Steve King, Tabula co-founder and CTO Steve Teig and Flurry co-founder and former CTO Sean Byrnes.
Yammer houses the Alchemist Accelerator workspace in their San Francisco headquarters and Yammer staff like company co-founder Adam Pisoni are involving in the mentoring process of participating companies.