Addison accelerator Collide Village has launched CoBuild, a startup studio aiming to provide entrepreneurs resources and hands-on partnerships to launch successful startups.
“There’s no other program of this nature with hands on execution in Dallas,” said Tahir Hussain, founder of Collide Village. “Entrepreneurs need a lot of help, not just one hour of mentoring. They need day-to-day help.”
Hussain has teamed up with Matt Warmuth, a serial entrepreneur and local investor, for CoBuild, which launched Sept. 1. Together, the two have invested in about 50 startups. Warmuth and Hussain will serve as co-founders, offering hands-on support and execution, for every company that goes through CoBuild.
CoBuild is currently raising a $3 million fund, which will come from angels, venture capitalists, and Hussain and Warmuth, who plan to invest $400,000 together. The program will invest $200,000 to $300,000 in companies based on specific milestones. Equity percentages will be determined on a case-by-case basis. If the entrepreneur wants to quit the company, he or she will keep a small stake while Hussain and Warmuth continue the company through CoBuild. The program will also be equipped with a development team, marketing team and operations team that collectively will include up to about 12 people, which are currently still being hired. Those resources will be shared between all of CoBuild’s companies.
The vision of this project came after Hussain helped guide startups as a part of the Collide Village accelerator program in 2014 and 2015. There, he watched entrepreneurs get guidance, mentorship, and programming under the traditional accelerator model, but struggle with development and execution. Collide Village offered entrepreneurs a 12-week program, mentorship, and $25,000i n exchange for 6 to 10 percent equity. So in 2016, Hussain halted new classes and did a little research. The goal: Understand what model is most impactful to help startups and entrepreneurs achieve success.
“The accelerator model has gaps,” he said, adding that mentoring and funding is just not enough. “You give them money and hope for the best. We want to change that.”
CoBuild already has one company under its wing, real estate technology company AvantaRisk Management. CoBuild received 30 inbound ideas from current and aspiring entrepreneurs before officially launching. Collide Village will continue to serve its portfolio, as CoBuild serves as the growth vehicle. Both will be based out of the Addison TreeHouse.
