David Cummings on Startups

Tag: Atlanta

  • ATV Sylvan Downtown Grand Opening

    This past week, we opened our new Atlanta Tech Village location downtown in the historic Sylvan Hotel on Hotel Row. It was incredible to see over 100 friends and community supporters in attendance, including the mayor, several members of City Council, local civic groups like Central Atlanta Progress and the Metro Atlanta Chamber, as well as numerous entrepreneurs and startup leaders from the community. It’s truly a special feeling to be so supported and encouraged in our efforts to revitalize downtown and help local Atlantans rediscover an important part of our city.

    Exactly one year ago, we were walking the neighborhood, brainstorming where to start and gathering as much information as we could to think through a master plan. One of the documents we found during due diligence was a test fit build-out of office space in the Sylvan building, created by Gensler, one of the most prominent architecture firms in the world. After reviewing this document and the proposed layout, combined with walking through the building many times and seeing the two office tenant spaces already in use, the proverbial lightbulb went off: this was the perfect spot to build out a flagship Atlanta Tech Village location downtown.

    As part of our collection of 56 buildings, the Sylvan building had already undergone some improvements by the previous owners. They had renovated six of the buildings, mostly core and shell, meaning the exteriors were restored, but the interiors were empty spaces. Among these buildings on Hotel Row were 10 retail spaces that had been white-boxed, creating a blank canvas for future retailers. A few weeks into starting work on the new Atlanta Tech Village flagship location, we were discussing the retail spaces and potential tenants. That’s when the lightbulb went off again—we realized that to make the building more inviting and accessible, one of the 10 retail spaces should serve as the lobby and reception area for Atlanta Tech Village.

    Initially, I suggested the retail space on the right side of the building because it was closer to the center of the block. However, I was quickly shown that the retail space on the left side of the building, directly across the hall from Spiller Park Coffee, was a more natural entrance for ATV. Now, we have a beautiful street-level entrance with a lobby, reception, and small event space. Upstairs, the building features 40+ private offices, several conference and board rooms, multiple kitchens, and another event space that can accommodate 50 to 75 people comfortably.

    One of my favorite moments is seeing people experience the new space for the first time. Walking the halls, they take in the textures on the walls, from the plaster to the exposed brick and heavy timber. Looking out the windows, they see a mix of Art Deco, mid-century modern, and glass-and-steel buildings surrounding them. The vibe and character of this space are unlike anything else in the city.

    Atlanta Tech Village Sylvan in downtown Atlanta is now open for business. The next time you’re in the neighborhood or want to experience an incredible piece of Atlanta’s history, please come by for a tour. We’re excited to celebrate this next milestone in building the largest startup and innovation district in the country. 55 more buildings to go!

    Photos Courtesy of Gensler

  • Why Atlanta for Startup Investing

    Last week, I was asked to speak at a friend’s limited partner investor meeting. We covered all the usual topics, like what to look for in a founder and in a startup. Then, she asked me to share why investors should care about investing in Atlanta. Easy.

    Let’s look at what makes Atlanta a great place for startup investing:

    #1: Population Growth

    For decades, one of the best indicators of a region’s vitality is when people “vote with their feet” by moving there. Atlanta has been one of the fastest-growing metro areas in the country and is now the sixth-largest in the United States, recently surpassing Washington, D.C., Miami, and Philadelphia in size. Compared to these other regions, Atlanta is growing much faster and will continue to outpace them in population growth. People flock to areas with ample personal and professional opportunities, and Atlanta wins purely based on population growth.

    #2: College Town

    Atlanta is a college town with hundreds of thousands of students, led by Georgia Tech. Georgia Tech is one of the most highly regarded universities in the country, with every engineering discipline ranked in the top 10 nationally and more graduates per year than Stanford, MIT, and Carnegie Mellon combined. When it comes to a continuous pipeline of top-tier technical talent ready to invent the future, Georgia Tech is unmatched. Add to that the graduates from Emory, Georgia State, Spelman, Morehouse, and other esteemed schools in the great region like the University of Georgia, Clemson, and Auburn, and it’s easy to see why Forbes ranks Atlanta as the most educated city in the country. Demographics are destiny, and Atlanta’s are top-notch.

    #3: Development in the City Core

    Over the last 10+ years, two economic miracles have been taking place within Atlanta’s city limits. First is the urban revitalization of Midtown Atlanta, an area immediately adjacent to Georgia Tech and between downtown Atlanta and Buckhead. This several-mile stretch has seen $10 billion worth of new developments, creating a modern live-work-play urban core with dozens of new skyscrapers. The second economic miracle in the city has been the development of the Beltline and new construction around it. This project has also seen $10 billion in new developments, creating an urban trail that reconnects dozens of historic neighborhoods and has contributed to Atlanta being the fastest-growing large city in the country. The Beltline will remain a critical economic driver for the next 20 years and will play a major role in moving Atlanta residents beyond a car-centric lifestyle. Combine that with billions of dollars being invested in downtown Atlanta to revitalize it, and you have a playbook for continued growth while maintaining 50% tree canopy coverage.

    #4: The World’s Busiest Airport

    Last year, Atlanta’s Hartsfield-Jackson Airport had 105 million passengers, making it the busiest airport in the world. From a regional perspective, this translates into direct flights to every major and mid-sized market in the United States, as well as international routes to every major city worldwide. For both business and personal travel, frequent direct flights are a real advantage and continue to fuel the region’s growth.

    #5: Positive Can-Do Attitude

    Atlanta has been punching above its weight class for the ~180 years of its existence. Originally a point where railroad lines intersected to ship goods from the Northeast to the Mississippi River, Atlanta has grown into the sixth-largest metro in the United States. This growth is largely driven by a warm, inviting culture that embraces progress and ambition. The city’s “can-do” attitude is much like the little engine that could, continuously moving forward and defying the odds. The past is the best predictor of the future, and Atlanta’s continued growth is a great bet.

    From population growth to college students to recent developments and a major airport, Atlanta has everything needed for startups to thrive. Startup investors should invest both their time and money in Atlanta.

  • New Series: Atlanta Startup Advantages

    I’m going to start a new series titled Atlanta Startup Advantages and talk about some of the many great attributes Atlanta has for young technology companies. With today’s technology, companies are able to be so much more capital efficient, and take advantage of the many resources a city like Atlanta has to offer. Here are some topics that come to mind:

    Please let me know of other topics to add to the list.

  • Y Combinator for Atlanta – Part 2

    My previous post on a Y Combinator for Atlanta has generated a good bit of off-line interest. Here are the most common questions I’ve been asked:

    • How would you choose the teams?
    • Do you think there will be enough interest and applications?
    • How will it differ from the original Y Combinator?
    • What happens to the teams at the end of the program?
    We’ll find out these answers and more over the next 12 months.

  • Y Combinator for Atlanta – Costs?

    Lance Weatherby has an interesting post titled “Who Wants Seed Money?” in which he discusses the idea of a Y Combinator for the Southeast. I’m a proponent of the idea and was part of the discussions last year with the people he mentions. Mike Landman and I hashed out the idea once again today at lunch and concluded that Atlanta really needs such a program. Mike is heading up the EO Accelerator program for Atlanta which helps entrepreneurs with businesses between $250k and $750k grow to $1 million plus so as to be eligible to join EO (which I highly recommend).

    Naturally, Mike and I dove right into some of the details of doing a Y Combinator for Atlanta. We each have a couple thousand extra square feet at our respective corporate offices to provide a co-working environment. What are some of the other costs? Here are the initial thoughts on costs on an annual basis:

    • Managing Partner – volunteer (~$5k in expenses to talk at regional organizations and schools)
    • Part-time Program Coordinator – $20k
    • 5 teams in one summer class @ $20k investment per team – $100k
    • Office space (2,000+ sq feet for 20 people) – $25k (possibly less)
    • Legal – $5k
    • Accounting – $3k
    • Miscellaneous (food, infrastructure, etc) – $7k
    • Cushion (more people per team than expected, legal/accounting in future years) – $10k

    Total: $175k annually