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What problem does your solution solve?
The most innovative group of society is barred from entrepreneurship. Audacious and open-minded, teens are well suited for entrepreneurship. In fact, 4/10 teens want to start their own businesses, including 3.5 million underserved teens. Yet, only 15% of high schools teach business classes & mostly in privileged districts. If unaddressed, 3.5 million underserved teens will have their entrepreneurial solutions go untested. We just can't stand for that.
So, we created Elix Incubator. The world's first social impact incubator for teen entrepreneurs. Elix offers seed money, helps with web design, prototyping, piloting, legal consulting, and much more to deserving founders with sustainable solutions for social issues. The best part? We don't take equity.
What’s the market potential for your solution?
Our target market is teens who have bold social concepts but don't know where to start. We're looking for bold teen innovators from anywhere on the globe. Preferably, they already a team in place and a concept they're passionate about.
Worldwide, incubators in 2015 grossed $20 billion. Teen incubators in 2015 grossed roughly $7 million. We can expect to reasonably obtain a 15% market share in the next two years, grossing $1.5 million.
Who are your customers?
We're a B2B company for teen social enterprises from any country. We welcome international companies into our program. In addition to US teams, we've worked with teams in Moldova, Thailand, Costa Rica, India, and through out Europe. As an incubator, our incubatees and portfolio companies are our consumers.
Check out our pitch deck for more: https://www.elixincubator.com/blog/deck
How will you reach your customers?
Elix attracts underserved teens via social media ads, outreach through school counselors, and partnerships with teen-oriented community organizations like 7 Teepees and SPARK. Once in the Elix program, we’ve seen that teens begin to involve their peers in entrepreneurship, naturally spreading our reach.
How will you make money?
To provide our incubatees with the resources they need, we draw on the Elix Innovation Fund, which acts as both a reserve of seed money for our ventures, and a safety net for the struggling ones. And how do we get money into our EIF? It’s simple: we collect 20% quarterly royalties from each venture’s PROFITS during incubation, reduced post incubation royalties, and through our pyramidal exit sale clause. So far our ventures have welcomed and supported these intentions.
Additionally, we rely on grants and corporate sponsors to support our fund.
What kind of partners will you need to make, support and distribute your solution?
We have many pro bono partners, including the world class law firm Morrison & Foerster, who helped us become an LLC. We’ve also secured custom curriculum and work space, from partners like the Stanford-backed Decision Education Foundation and MindTank co-working office. As an incubator, we rely on institutions like the Stanford Graduate School of Business for courses on Social Enterprise. For Example, Russell Siegelman, a former VP of Microsoft and Partner at Kliener Perkids, gave us access to some of his course materials. VEER, an ed-tech start up, has also provided great curricula thus far.
Some of our other partners include Amazon Web Services, United Nations Global Compact, the Diamond Challenge, and the Barowsky School of Business.
What will your expenses include?
Our expenses include our office space ($375/month), our website ($25/month), our G-suite accounts ($110/month), and most importantly, our seed grants for prototyping and piloting with our portfolio companies.
Who is your competition and how do you differ?
Elix is the first TUITION FREE social impact incubator. The CATAPULT Program, another teen incubator, is an alternative option for our ideal client. However, Elix is distinctly different. First, CATAPULT charges a steep tuition fee, alienating teens of low socioeconomic backgrounds. Elix charges no tuition at all. Additionally, CATAPULT only last for a few months and doesn’t guarantee seed money, whereas Elix lasts for one to three years and promises ventures at least one installment of seed money. Other competitors include Young Entrepreneurs Academy and start up camps like MIT Launch.
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