[October 30, 2011] St. Louis Post-Dispatch David Nicklaus column Tweet Oct 30, 2011 (St. Louis Post-Dispatch - McClatchy-Tribune Information Services via COMTEX) -- Anthony Favazza has just made his elevator pitch for DiningCircle, a software company that he says will revolutionize the way restaurant reservations are made. One of his listeners, fellow entrepreneur Ryan Bell, suddenly becomes animated. He once ran a restaurant, and he knows intuitively what sort of problems, such as keeping track of tables, DiningCircle's software can solve. Bell suggests that Favazza mention such specifics in his pitch. It's a small thing, but the exchange illustrates the benefits of a relatively new concept called a technology accelerator, which moves entrepreneurs into a common space for a short period of intense mentoring. Capital Innovators, a St. Louis venture capital fund, brought the concept here in September, when it moved its first five companies into the Railway Exchange Building downtown. The companies, including DiningCircle and Gremln, Bell's social-media company, are now halfway through the three-month mentoring program. The entrepreneurs knew they would benefit from Capital Innovators' investment of $50,000 per company, and they figured that having access to experts in marketing and finance would be helpful. What surprised them, they say, was the serendipity that comes from working next to like-minded people. "What's been good for me has been the energy of being in the same place with similar companies that have similar ambitions," said Jim Dolan, founder of Action Online, a network of websites for collectors of action figures. A Starbucks was Bell's office before he moved to the Railway Exchange. The baristas knew him by name, but it was a lonely existence. Having other entrepreneurs nearby "keeps you motivated and keeps you focused," he said. The accelerator program has only a few structured hours each week. On Wednesday mornings, for instance, the entrepreneurs gather to hone the sales pitches that they'll use with clients and potential investors. The rest of the time, the entrepreneurs meet with mentors or work on their own. All say they've made considerable progress. Gremln just released a beta version of its software, which will help companies manage and measure their social media exposure. NorseCorp, an Internet security firm, has landed two customers. JBara Software already has revenue coming in from its customer-management software. Capital Innovators may, however, make an important change to its plan. Judy Sindecuse, the fund's chief executive, says she may postpone Demo Day, a graduation event at which the entrepreneurs will speak to venture capitalists and other potential investors. The first such event may be in May instead of December. The companies have good stories to tell, she says, but don't yet know how to tell them. She has attended similar programs around the country, and she says investors expect slick multimedia demonstrations, not dry PowerPoint presentations. She wants to spend more time with these entrepreneurs before showing them -- and her fund, and St. Louis -- to the world. "I don't think it would be worthwhile to bring that money to St. Louis to attend a Demo Day if the companies are not ready to ask for the money," Sindecuse said. Is the delay a disappointment? Perhaps, but Sindecuse thinks investors will eventually like what they see. Meanwhile, Capital Innovators is accepting applications for its second group, which starts in February. It has already heard from entrepreneurs in the Netherlands and India, as well as several U.S. states, who are willing to move to St. Louis to take advantage of the accelerator program. If you know anyone who's still writing code at the local Starbucks, point him or her toward this downtown technology oasis. The coffee may not be as good, but the serendipity is excellent. ___ (c)2011 the St. Louis Post-Dispatch Visit the St. Louis Post-Dispatch at www.stltoday.com Distributed by MCT Information Services [ Back To TMCnet.com's Homepage ]