The Guide to Atlanta's Start Up Scene

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July 2014

The Guide To The

Atlanta Startup Scene


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1995-1998Morehouse College

1998-2002Georgia Tech

2000-2014CipherTrust

Secure ComputingPurewireBarracudaPindropTechSquare Labs

1995Moved to Atlanta

TIMELINEIm often asked about the Atlanta startup scene and thought thereshould be something that tries to explain all of the excitement andprogress. Allen convinced me to stay up one night and pull together mythoughts. (And then it took 3 nights.) I hope that you find it useful.Please send me any questions or mistakes: [email protected]. Weare happy to host anyone that would like to visit the Atlanta startupscene.

Bio written in third-person: (Imagine Samuel Jackson voice)Paul is a serial entrepreneur and noted scholar. He was CTO ofCipherTrust acquired by Secure Computing then McAfee, cofounder of

Purewire acquired by Barracuda and cofounder of Pindrop. He hasinvested in 30 tech startups. He currently holds over 30 patents and wasrecognized by MITs Technology Review Magazine as one of the Top 100young innovators in the world. Paul has contributed to national mediaoutlets including Wall Street Journal and TechCrunch. He is based inAtlanta and spends one week per month in Silicon Valley.

ABOUT ME - AND WHY I MADE THIS

Paul Judge, PhD@PaulJudge


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1. Atlanta's past tech success2. 25 startups to watch3. startups by sector4. investors

5. spaces6. schools7. government8. content, media & events9. service providers

10. F1000 companies11. culture12. living in Atlanta

THE GUIDE TO THE ATLANTA STARTUP SCENEOUTLINE


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High expectations are the key to everything.Sam Walton

ATLANTAS TECH SUCCESS - A LOOK AT THE PAST


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5VENTURE DEALS IN GEORGIA - Q1 2012 - Q1 2014

1.1%OF USDEALS

$781MILLION

104VENTURE

DEALS

TOTAL DEALS104 Deals since 2012

TOTAL DOLLARSThe average

investment was$7.5 Million

PORTION OFMARKET

This represented1.1% of all deals anddeal dollars in the USin that period.

Source: pwcmoneytree.com
http://pwcmoneytree.com/http://pwcmoneytree.com/


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6OVER 100 EXITS IN ATLANTA-TOTAL $60 BILLION IN VALUE


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7THE ACQUIRERS - ACQUIRED ATLANTA COMPANIES


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8PUBLICLY TRADED TECH COMPANIES - IN ATLANTA


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1. AirWatch was acquired in 2014 for $1.4 billion by VMWare.

(founded in 2003, acquired in 2014)

2. Radiant Systems was acquired in 2011 by NCR for $1.2 billion.

(founded in 1985, IPOed in 1997, acquired in 2011)

3. Witness Systems was acquired in 2007 to Verint for $1 billion.

(founded 1988, IPOed in 1997, acquired in 2007)4. Per-Se Technologies was acquired in 2007 by McKesson for $1.8 billion.


5. Internet Security Systems was acquired in 2006 by IBM for $1.3 billion.


6. Scientific Atlanta was acquired in 2006 by Cisco for $6.9 billion.


7. TradeX was acquired by Ariba for $5.6 billion in 2000.

8. MindSpring merged with EarthLink in 2000.

MindSpring was worth about $1.3 billion at the time.

9. WebMD merged with Healtheon in 1999 in a $7.9 billion deal.

UNICORNS - IN ATLANTA


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10INFOSEC EXITS IN ATLANTA - $4 BILLION

$4BINFOSEC

EXITS

CURRENT INFOSECCOMPANIES

IonicPindrop

Endgame

Damballa

$4 BILLION IN INFOSEC EXITS IN ATLANTA

Airwatch, Alan Dabbiere and John Marshall , $1.5B

ISS, Chris Klaus and Tom Noonan, $1.3 B

Secureworks, Mike Cote and Jon Ramsey, $612 M

CipherTrust, Jay Chaudhry and Paul Judge, $273 M

AirDefense, Jay Chaudhry and Mike Potts, $90 M

SPI Dynamics, Caleb Sima and Brian Cohen, $90 M

Purewire, Paul Judge and Mike Van Bruinisse, $XX M


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11MARKETING AND SALES AUTOMATIONEXITS IN ATLANTA - $750 MILLION

$750MS&M AUTO

EXITS

CURRENT S&M AUTOMATIONCOMPANIES

MailchimpWhatCounts

SalesloftInsightPool

$750 MILLION IN SALES AND MARKETING AUTOMATION EXITS INATLANTA

Vitrue, Reggie Bradford $300 M

Silverpop, Bill Nussey, $270 M

Pardot, David Cummings, $95 M

BLiNQ Media, David Williams, $90 M


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12RANKED #8 METRO AREA FOR ACQUISITIONS- 13 IN 2013


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1325 ATLANTA STARTUPS TO WATCH -GROWTH STAGE

The way to get started is to quit talking andbegin doing.

Walt Disney


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1. Autotrader: $1Billion in revenue.2. Cardlytics: $50M revenue in 2013 and $104M in funding.

3. Clearleap: $20M in revenue and $16M in funding.4. CloudSherpas: $75M in revenue in 2012.5. Damballa: $44M in funding.6. eFolder: $26M in funding.7. Endochoice: $30M revenue in 2012.8. IngeniousMed: $11M revenue in 2012.

9. Ionic Security: $38M in funding.

10.Kabbage: $10M in revenue.11.MailChimp:12.News Distribution Network: 573 M monthly views.13.Paymetric: $14M in revenue in 2012.

14.Pindrop: $12M in funding.15.PlayOn Sports: $35M in funding.

16.Purchasing Power: $200M revenue in 2012.

17.Salesfusion: $4.8M in revenue and $10 in funding.

18.SalesLoft: >$1M in revenue.19.ShareCare: $91M in funding.

20.SoloHealth: $25M in funding.21.Suniva: $224M in funding.22.The Rainmaker Group: $20M revenue in 2012.23.Vendormate: $25M revenue in 2013.24.WhatCounts: $30M in funding.25.Yik Yak: $10M in funding

25 ATLANTA STARTUPS TO WATCH - RIGHT NOW


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Embrace what you dont know, especially in thebeginning, because what you dont know canbecome your greatest asset. It ensures that you

will absolutely be doing things different fromeverybody else. Sara Blakely, SPANX founder

ATLANTA STARTUPS - BY SECTOR


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16SALES & MARKETING AUTOMATION - IN ATLANTA


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17FINANCIAL TECH STARTUPS - IN ATLANTA

FYI:70% of all US credit card transactions

are processed in Georgia

including[Elavon, First Data, Global Payments, TSYS, WorldPay]


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18HEALTH TECH STARTUPS - IN ATLANTA

15,000employees

$11 Billionannual budget

Based in Atlanta


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19ENTERPRISE STARTUPS - IN ATLANTA


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20CONSUMER STARTUPS - IN ATLANTA


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21OTHER STARTUPS - IN ATLANTA


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Chase the vision, not the money; the money willend up following you.Tony Hsieh, Zappos CEO

INVESTORS - ACCELERATORS, SEED, AND VC


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ATDCAtlanta Ventures AcceleratorFlashpointForgeATLGlobal Center for Medical

Innovation

Startup Chicks

Tech Square Labs

INCUBATORS AND ACCELERATORS


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!Buckhead Investment Partners

!Cox Venture Fund!Forte Ventures!Fulcrum Ventures!Imlay Investments!Mosley Ventures!Noro-Moseley

!TechOperators!TTV Capital

VENTURE FUNDS


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!Atlanta Ventures, David Cummings and Johnson Cook!BLH Ventures, Ashish Mistry!BIP Early Stage Fund, Jamie Hamilton!Tech Square Labs, Paul Judge and Allen Nance!Tech Square Ventures, Blake Patton

SEED FUNDS


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!Angel.co/TechSquare!Syndicate is focused on promising Atlanta startups!Expected deal quantity: 7-10 per year

ANGELLIST SYNDICATE -FOCUSED ON ATLANTA STARTUPS


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Risk more than others think is safe. Dreammore than others think is practical.Howard Schultz, Starbucks CEO

PLACES - COWORKING AND HANGOUTS


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ATDCAT&T FoundryAtlanta Tech VillageCollider

The Goat Farm Arts CenterHypepotamusKollective South151 LocustOHub at 200 Peachtree

NEX AtlantaROAMStrongbox WestSwitchyardsTech Square Labs

WORK - COWORKING, ETC.


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OctaneCypressStarbucks on 5th & SpringSpenceOrmsbysThe VortexThe IvyTerminal West

HANGOUTS - COFFEE SHOPS & BARS


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Tech Square (Midtown)BuckheadAlpharettaPonce City Market

CLUSTERS - HOT AREAS OF STARTUP ACTIVITY


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Georgia Techs Technology Square is a mixed-usedevelopment in midtown Atlanta that houses over700,000 square feet of business, educational,research and retail space. It is the epicenter oftechnology innovation and entrepreneurship in

Atlanta and the Southeast. Georgia Techsbusiness school is one block to the east andGeorgia Techs computer science school is oneblock to the west. The land that is TechnologySquare was originally purchased by Georgia Techin 1997 and the development opened in 2003.

TECH SQUARE - MIDTOWN, ATLANTA, USA


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The more that you read, the more things you willknow. The more that you learn, the more placesyou'll go.

"Dr. Seuss, I Can Read With My Eyes Shut!

SCHOOLS - COLLEGES AND UNIVERSITIES


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Atlanta ranks 7thin college enrollment with 275,000 students

Atlanta ranks

5thin university research with

$1.49 billionin

expenditures

Atlanta has 60,000 studentsenrolled in 7 technical colleges

STATS ABOUT SCHOOLS - TALENT AND RESEARCH


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Georgia TechEmoryGeorgia State

SCADMorehouseSpelmanClark Atlanta UniversityOgelthorpe UniversityKennesaw StateMercerAgnes ScottUniversity of Georgia (1 hr away)

SCHOOLS - HIGHER EDUCATION IN ATLANTA


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In 2014, Georgia Tech was ranked #7 among public universities in the

country by U.S. News & World Report.

The Georgia Tech College of Engineering is consistently ranked in thenation's top five by the magazine.

Techs industrial engineering program has been ranked #1 for morethan two decades.Eight of the undergraduate engineering programs and all 11

graduate engineering programs are in the top 10.

Georgia Tech's graduate computer science program is also ranked inthe top 10.

400-acre campus in the heart of Atlanta100 interdisciplinary research units14,500 undergraduate students and 6,900 graduate students

source: gatech.edu

PresidentBud Peterson

GEORGIA TECH - WE CAN DO THAT
http://gatech.edu/http://gatech.edu/


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ATDCEnterprise Innovation InstituteGeorgia Tech Research Institute

Georgia Research AllianceInVenture PrizeInvention StudioCapstone DesignVenture Lab

StartupExchangeStartup LabStartup Summer

GEORGIA TECH & ENTREPRENEURSHIP - COMMITTED


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In Atlanta Since 2014

In Atlanta Since 2014

Merged with Highgroove in

2012

PROGRAMMING EDUCATION - IN ATLANTA


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entrepreneurs also play a critical role inexpanding our economy and creating jobs."President Barack Obama

GOVERNMENT - SUPPORTIVE OF STARTUPS & TECH


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39CITY OF ATLANTA - STARTUP AND TECH SUPPORT

Mayor Kasim ReedCity Council President Ceasar MitchellCouncilman Kwanza Hall

Invest AtlantaStartup AtlantaAtlanta City Hackathon


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40STATE OF GEORGIA - STARTUP AND TECH SUPPORT

HB 958: Video Game $25M Tax BreakApril 2014, extending 2008 law

HB 318: Georgia Angel Tax Investor Credit

March 2013, extending 2010 lawInvest Georgia Exemption: Intrastate Equity-basedCrowdfunding for non-accredited investors.

December 2011: Rule 590-4-2-.08


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Entrepreneurial communities have to be led byentrepreneurs"Brad Feld

CONTENT & EVENTS - MEDIA AND GATHERINGS


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42MEETUPS - WEEKLY EXCUSES TO SPEAK GEEK

Atlanta Web Design Group (2800+)Atlanta Startup Village (2700+)PyAtl: Atlanta Python (1300+)The Atlanta Javascript (1700+)

Atlanta Big Data User Group (800+)Atlanta Ruby Meetup (1600+)Atlanta Scrum Users Group (1400+)Atlanta Hadoop Users Group (700+)Atlanta Game Developer Meetup

Group (800+)Atlanta Spring Users Group (400+)Atlanta Microsoft Developers (500+)DevOps ATL (600+)


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43ASSOCIATIONS - SUPPORTING THE MEMBERS

Technology Association of GeorgiaTiE AtlantaMetro Atlanta Chamber

Atlanta CEO CouncilChooseATL.comTechnology Executive Roundtable
http://chooseatl.com/http://chooseatl.com/


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!Atlanta Business Chronicle!Atlanta Journal Constitution!Atlanta Tech Edge!PandoDaily!TechCrunch!GigaOM!CNN!Booth 61 with Ricky Steele

TECH MEDIA AND NEWS - LOCAL AND NATIONAL


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facebook.com/groups/techsquarewww.bizjournals.com/atlanta/blog/atlantechhypepotamus.com

AcademicVC.orgAllenNance.comatlantatechblogs.comDavidCummings.orgJonBirdsong.comblog.weatherby.net

notonlyluck.comblog.salesloft.comventureatlanta.org

STARTUP BLOGS IN ATLANTA - RECOMMENDED LIST
http://davidcummings.org/http://ventureatlanta.org/http://ventureatlanta.org/http://davidcummings.org/


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46HACKATHONS - FUN & PRODUCTIVE

HackGT @ Georgia TechStartup Weekend AtlantaCoca-Cola Startup Weekend

AT&T Foundry Hackathon

Govathon by Startup AtlantaEmory HackathonHealthcare Hackathon


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47CONFERENCES - AND OTHER EVENTS

Digital SummitVenture AtlantaTAG Business Launch Competition

Southeast Venture ConferenceMIT Enterprise Forum - AtlantaStartup LoungeHacker Halted

Startup ChowdownStartup DrinksStartup RiotFounder Fables


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If youre not a risk taker, you should get the hellout of business.Ray Kroc, McDonalds founder

PROFESSIONAL SERVICES - PROVIDERS


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LEGAL

HA&WTechCXOCheery Bekaert

Acuity CFO

ACCOUNTANTS REAL ESTATE BANKS

Silicon Valley Bank Square 1

CBRE

Cushman Wakefield Icon

DLA PiperMorris Manning &

Martin

Nelson Mullins

SutherlandOTHER

Arketi Friendly Human Peachtree Supplies

TriNet ZAG PR

PROFESSIONAL SERVICES - PROVIDERS


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Your most unhappy customers are yourgreatest source of learning.Bill Gates, Microsoft co-founder

ENTERPRISE COMPANIES - FORTUNE 1000


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source: Metro Atlanta Chamber, Fortune Magazine

FORTUNE 1000 IN ATLANTA - STATS

27 FORTUNE 1000companies headquartered in metro Atlanta

15 FORTUNE 500companies headquartered in metro Atlanta

$359.6 Billionrevenue of Metro Atlantas headquartered FORTUNE 1000


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FORTUNE 500 IN ATLANTA - REVENUE


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FORTUNE 500 IN ATLANTA - LOGOS


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FORTUNE 1000 IN ATLANTA - LOGOS


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source: philanthropy.com

NON PROFITS IN ATLANTA - Five of the Top 20

Five of the Top 20 Non-profits in the US are based in Atlanta

CULTURE


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And a lot of things in hip hop are very instructivefor being in business. Particularly, hip hop is alot about business, and so it was very useful for

me in any job.- Ben Horowitz

CULTURE- KEY TO CONSUMER INNOVATION AND ADOPTION


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Home to GRAMMY winners in multiple categories and genres 300 music studios Over 40 annual music festivals statewide

Pop, R&B and hip-hop: 2 Chainz, Akon, B.o.B., Cee Lo Green, Ciara,Jermaine Dupri, Future, Keri Hilson, Kris Kross, Lil Jon, Ludacris,Monica, OutKast, Soulja Boy, TLC, T-Pain, Toni Braxton, T.I., Usherand Young Jeezy. Execs: L.A. Reid, Babyface

Country music: Jason Aldean, Zac Brown Band, Luke Bryan, BillyCurrington, Brantley Gilbert, Lady Antebellum and Sugarland.

Gospel and Contemporary Christian: Francesca Battistelli, CastingCrowns, Jeff & Sheri Easter, Jamie Grace, Canton Jones, LeCrae,Karen Peck & New River, Laura Story, Third Day and Chris Tomlin.

source: georgia.org

ATLANTAs MUSIC INDUSTRY - WORLDWIDE INFLUENCE


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58FILM AND TV - DEEP HISTORY AND FAST GROWTH

In FY 2013, $3.3 billion invested in Georgia by televisionnetworks, Hollywood studios, and producers

700 feature films, TV movies, TV series, single episodes andpilots produced in Georgia since 1972

source: georgia.org

HEADQUARTEREDIN ATLANTA
http://georgia.org/http://georgia.org/


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NBA NFL

WNBA MLS

coming in

2017

SPORTS - EVERY PROFESSIONAL LEAGUE

MLB


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Work Hard, Play Hard Unknown

LIVING IN ATLANTA - QUALITY OF LIFE


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1. GROWTH IN POPULATION

5.5 million people, 9th largest metro area Since 2000, grown by 1.1 million people, 26% increase Atlanta grows by about 200 people per day

2. DIVERSITY

International population; Percentage of companies owned by African Americans and bywomen exceed national averages

Central role in civil rights movement and now helps drive global culture Recognized as a supporter of the LGBT community

3. QUALITY OF LIFE

36% Tree coverage, highest of any major city Moderate cost of living and Wide range of social activities Foodie town: More restaurants per capita than any other city More about food and neighborhoods, please see: http://mailchimp.com/about/atlanta/

LIFE IN ATLANTA - GROWING, DIVERSE, QUALITY
http://mailchimp.com/about/atlanta/http://mailchimp.com/about/atlanta/


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62COST OF LIVING - BELOW U.S. AVERAGE

source: Metro Atlanta Chamber


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Most traveled airport in the world 95 millionpassengers a year Nonstop flights to 160 domestic

destinations and almost 70internationaldestinations in 45countries

80% of US market within 2 hrs 2 hrs to New York or Miami 4.5 hrs to San Francisco or San Jose 8.5 hrs to London

EASE OF TRAVEL - HARTSFIELD INTL AIRPORT


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"See we do it for that boy that graduated/That looked you in your eyes real tough and said preciate itAndre 3000 of Outkast

SUMMARY - AND NEXT STEPS


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65WAYS TO PARTICIPATE - GET INVOLVED

WE BELIEVE IN THE FUTURE OF THE STARTUP SCENE IN ATLANTA.WE WILL HELP YOU GET INVOLVED IN IT.SOME OPTIONS:

1. FOLLOW ANGELLIST SYNDICATE:

ANGEL.CO/TECHSQUARE

2. JOIN A STARTUP WANT TO WORK AT AN ATLANTA STARTUP? WELL HELP PLAY MATCHMAKER.

[email protected]

3. GET FUNDING

HAVE A STARTUP (IN ATLANTA OR THAT WANTS TO MOVE TO ATLANTA)? SUBMIT TO OUR SEEDINVESTMENT TEAM: [email protected]

4. COME VISIT

WE ARE HAPPY TO HOST TOURS OF THE FULL ATLANTA STARTUP SCENE AND ORGANIZE ON-DEMAND DEMO DAYS BASED ON YOUR INTERESTS: [email protected]. JOIN MAILING LIST FOR UPDATES

BIT.LY/ATLANTASTARTUPS
http://angel.co/TECHSQUAREmailto:[email protected]:[email protected]:[email protected]://bit.ly/atlantastartupshttp://bit.ly/atlantastartupsmailto:[email protected]:[email protected]:[email protected]://angel.co/TECHSQUARE


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TechSquare Labs was founded by Paul Judge and Allen Nance to continue theirpassion for early stage technology company building and investing. They areboth graduates of Georgia Tech, accomplished entrepreneurs, and technologycommunity influencers. Over the last ten years they have helped start seven

companies, created 1000 jobs, and raised over $100 million from notableinvestors.

Now they are aiming to help create more unicorns in Atlanta. So far their activeportfolio includes 4 startups located in Technology Square that employ over 70team members, 40 of which attended Georgia Tech including 7 Ph.Ds. Thesecompanies have raised $20 million of funding and are trying to change the world.

Company Building Studio

ABOUT TECH SQUARE LABS - BUILDING THE FUTURE

About Allen: Allen is a serial entrepreneur and popular blogger. He has beenrecognized by both Georgia Trend and the Atlanta Business Chronicle as a 40 Under40 to watch. As CEO he led WhatCounts to three Inc. 500 awards representing thefastest growing private companies in America. He is also a member of YoungPresidents Organization (YPO).


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67THANKS - COME PARTICIPATE

It is better than ever.Come participate.Create, Build, Invest, Grow.

The Atlanta Startup Scene

Thanks,Paul Judge

Documents

The Guide to Atlanta's Start Up Scene