High Alpha Studio and Seed

Earlier today, Scott Dorsey, the former CEO of ExactTarget, and a great team of entrepreneurs, launched High Alpha Studio and High Alpha Seed (see Dorsey, Gravity investors raise $35M to Launch High Alpha) in Indianapolis, Indiana. The idea is a startup studio focused on building business-to-business (B2B) Software-as-a-Service (SaaS) applications combined with a separate seed fund to invest in the startups that spin out of the studio as well as other unrelated startups.

Here are a few thoughts on High Alpha Studio and Seed:

  • Entrepreneurs are drawn to starting incubators, and this is a great way to do it with a combo incubator and fund
  • Scott and his team have already shown the ability to generate great returns by starting and selling ExactTarget to Salesforce.com for $2.5 billion in cash
  • Having the seed fund ready at the same time as the studio is smart since a number of startup incubators build products but don’t have the corresponding funding to spin the ideas out into their own standalone business
  • Hiring 15-20 people for High Alpha Studio, per the article, makes for a serious staff (assume $100k/year/person and that’s a couple million dollars per year for staff)
  • Getting anchor investments from Emergence Capital (lead investor in SalesLoft) and Greenspring Associates provides a nice institutional investor tie-in for future financings

I’m excited for Scott, Kristian, Mike, and Eric and look forward to following their progress at High Alpha. Also, if you’re in the Indianapolis area, High Alpha is hiring for a number of positions.

What else? What are some other thoughts on High Alpha Studio and Seed?

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