Energy software accelerator to Surge ahead with $1.2 million
Tuesday, January 8, 2013/
A US-based energy software accelerator is considering late applications for its second class of companies, chosen from around the world, after raising $1.2 million in an equity offering.
Surge Accelerator, based in Houston, describes itself as the only start-up, mentor-driven venture accelerator in the world that was built for entrepreneurs solving energy problems using software.
According to Surge, Houston is the energy capital of the world, with more than 5,000 energy-related firms, several energy-focused venture firms and a strong angel network.
Every year, Surge selects companies from around the world to participate in a 13-week intensive program.
In addition to advice and mentoring, each company receives $30,000 in operation funding and support to offset the costs associated with program participation while living in Houston.
Companies agree to commit 6% of their equity in return. Surge can also choose to invest up to $50,000 more in convertible notes in its companies.
The program culminates in an investor demo day, known as Surge Day, when the companies showcase their progress and plans to more than 500 investors and mentors from the industry.
According to a regulatory filing with the U.S. Securities and Exchange Commission, Surge recently raised $1.2 million in an equity offering.
It’s understood Surge will use the funds for its second class, which starts next month.
Melanie Jones, Surge’s marketing and operations fellow, told StartupSmart Surge would consider investing in Australian companies.
“We are currently considering companies from several countries including Ireland, Norway and Spain,” Jones says.
To attend Surge, participants are required to relocate to Houston for the three months of the program, but there are no requirements to remain in Houston after the program.
Of the companies that apply for the program, some will be selected to pitch to Surge’s mentors, Jones says.
“International companies selected to pitch can either pitch online or in person. After that process, we make a final selection of 10 companies to offer a spot in our next class,” she says.
“While our applications for our next class are officially closed, we are considering late applicants on a case-by-case basis.
“Our team evaluates applicants on multiple points such as what pain point is addressed in the market (and the size of that pain point), the management team and the uniqueness of the idea.”