Draper Startup House Launches Austin Accelerator Program

Austin Emerges as a Hub for Innovation and Entrepreneurship

Austin, Texas, is rapidly gaining recognition as a prime location for established corporations, like Tesla, as well as investors and emerging startups.

The city is now also the site of Tim Draper’s latest venture designed to bolster early-stage founders: the Draper Startup House Accelerator Program.

The Draper Startup House Network

With backing from Draper, the program is scheduled to commence in April 2022. Draper, renowned as the founder of the prominent Silicon Valley venture capital firm Draper Fisher Jurvetson (DFJ), initially introduced the Startup House concept in 2018.

Currently, over 15 locations worldwide function as either hostels or co-working spaces, catering to traveling startup founders, digital nomads, and remote professionals. These locations span the globe, including Bali, Indonesia; Bangalore, India; and Valencia, Spain.

Beyond Austin, the only other U.S. location is situated in San Mateo, California, operating as a co-living space within Draper University.

Introducing the Accelerator Program

According to Daniel Wiegand, co-founder and president of DSH Accelerator, this new initiative represents Draper Startup House’s sole accelerator program.

DSH plans to host two cohorts in 2022, both based in Austin, each comprising 10 startup teams originating from across the globe. The first cohort will begin in April, followed by a second in August.

As an integral part of the program, DSH will provide investments of up to $100,000 to pre-seed startups.

Program Structure and Focus

Each cohort will span three months, occurring twice annually. In 2022, all cohorts will be held in Austin, with plans to expand to global locations in 2023.

“This accelerator will differ from conventional models by incorporating not only standard elements like investment from the Draper Startup House Accelerator Fund, mentorship, workshops, and a demo day, but also a robust leadership development component and unique challenges designed to test founders’ resilience and creativity,” Wiegand stated.

He further added that the program will blend aspects of Draper University with a traditional accelerator framework.

A Global Vision

Wiegand conveyed to TechCrunch that the program will feature “unconventional approaches to the standard accelerator model,” concentrating on early-stage ventures across diverse industries. While accepting applications from startups worldwide, DSH anticipates that many will choose to continue their expansion from Austin.

Participating startups will be required to live together throughout the program’s duration, fully dedicating three months to business development. Entrepreneurs, founders, or startups interested in learning more or applying can access the application here.

Focus on the Founder

“We prioritize identifying exceptional founders who are building substantial companies with ambitious ideas,” Wiegand explained to TechCrunch. “The founder is paramount, which is why the program will emphasize leadership training to assess their potential to guide their company toward its objectives.”

From Hostel to Accelerator

Draper initially envisioned launching the first U.S. location in Austin during SXSW as a hostel for entrepreneurs, aiming to create a welcoming hub for those visiting the local startup ecosystem and the broader Draper network.

However, the cancellation of SXSW and subsequent city-wide closures due to the COVID-19 pandemic necessitated a change in plans.

Founders Katie Russel and Wiegand swiftly adapted, transforming the intended hostel into a flexible co-working space for startups and entrepreneurs in response to the pandemic’s challenges.

Early Successes

Over the past 18 months, Draper Startup House has facilitated funding rounds for several Austin-based startups, including CoachTube, Mentor Method, and Tabella.

“We recognized the wealth of talent in Austin, as well as the influx of inquiries from startups globally seeking entry into the U.S. and the vibrant Austin ecosystem,” Wiegand said. “We sought a means to concentrate our efforts and invest more deeply in the startups demonstrating significant potential. This led us to conclude that a pop-up accelerator was the optimal path forward.”

Expanding the Reach

The program’s design is intended to enable DSH to reach an even wider range of startups worldwide. While the accelerator will maintain at least one cohort in Austin, DSH Accelerator plans to relocate the second cohort to a different global destination each year, with aspirations for simultaneous programs in multiple cities.

A Strategic Location Choice

Wiegand and Russel deliberately chose a location outside of Silicon Valley.

“Having worked in Silicon Valley for four to five years, we’ve witnessed the abundant opportunities, tools, and resources available here, but they aren’t universally accessible,” Wiegand clarified. “Silicon Valley is exceptionally expensive, particularly for bootstrapping startups. Therefore, we proposed to Draper that we leverage this ecosystem and brand, built over the last 20-30 years, to disseminate everything we’ve cultivated in San Mateo across the globe.”

Draper’s Endorsement

Draper stated: “We are very excited about how the Draper Startup Houses around the world are becoming beacons for entrepreneurs everywhere. The DSH Accelerator, based in Austin, will take advantage of the amazing startup environment in Austin and bring more activity to the Draper Ecosystem.”

DSH will conduct a month-long pilot program in January.