Meet Ted Spare from Rubric Labs
Q: Can you introduce yourself and your startup?
A: I’m Ted Spare, and I lead Rubric Labs, an AI-focused software agency. This agency emerged from a product startup my team and I advanced through Forum Ventures. Unfortunately, that original company didn’t survive.
Q: Did you pivot during the program?
A: Yes, the pivot happened after the program. Initially, we struggled to secure a seed round after participating in two accelerators, including Forum Ventures and another one called Soma Ventures in San Francisco. A mentor from Forum suggested we shouldn’t just shut down but instead offer our services to other startups to keep the business alive. This advice resonated with two of us, leading to the creation of what Rubric Labs is today.
Q: Was the pivot influenced by the program?
A: The pivot wasn’t directly motivated by the program but by our situation afterward. We found ourselves unable to raise the funds we hoped for and took the advice of a Forum Ventures mentor. This mentor recommended we transition to working for other startups, which allowed us to stay operational and explore new avenues. Our initial focus was on general full-stack development, but we’ve since specialized more in AI.
Q: What inspired the current direction for Rubric Labs?
A: Our journey to Rubric Labs was grounded in practicality. Initially, we focused on working for other startups, developing full-stack applications to maintain our operations independently of external funding. This approach not only provided us with a sustainable way to keep our lights on but also offered us the freedom to dabble in our own projects. We saw an opportunity to balance between consulting work and experimenting with our own products, without the need for venture capital investment. This shift was driven by a mix of necessity and a slight disenchantment with the VC model, steering us towards a more self-reliant and exploratory approach in the tech space.
Choosing Forum Ventures for Startup Acceleration
Q: How did you decide on Forum Ventures for your startup?
A: The decision to go with Forum Ventures was influenced by several factors. Firstly, the geographic proximity played a significant role since both Forum Ventures and our company were based in Toronto. This allowed us to utilize their co-working space, providing a vibrant and industrious environment that greatly contributed to our development. The access to mentorship exceeded our expectations, significantly impacting our journey. Another key factor was the connection with one of Forum’s partners, Jonah Medanik, who had a background that resonated with ours. Jonah’s experience in full-stack development and his transition towards building platforms and outsourcing work mirrored our trajectory, leading him to see potential in our team. Although there was skepticism about our product, Jonah believed in our team’s capability, which was a crucial consideration in our choice. Ultimately, we applied to several accelerators, but Forum Ventures stood out for these reasons, making it a fitting choice for our needs at the time.
The Application Process for Forum Ventures
Q: Can you describe the application process for Forum Ventures?
A: Reflecting on the application process to Forum Ventures, it was relatively straightforward, which was refreshing. The process involved the typical elements you might expect, such as submitting a pitch, filling out forms, and possibly including a video demo. Additionally, there were some video interviews. What stood out to me was the sense that they respected our time throughout this process. It didn’t feel overly burdensome or excessively competitive, but rather a well-structured and respectful experience. This approach made the whole application phase seem less daunting and more about mutual discovery, contributing to a positive start to our relationship with the accelerator.
Daily Life Inside Forum Ventures
Q: What was your experience like once you joined Forum Ventures?
A: Inside Forum Ventures, the days were filled with high-value activities, notably the lectures which we made an effort to attend regularly. These sessions provided significant insights and learning opportunities. Beyond the structured learning, a crucial part of our experience was the vast shared Slack channel. This platform connected us not only with current participants but also with alumni, serving as an invaluable resource for mentorship and advice. An especially unique feature was the “five-minute favor” channel within Slack. This initiative encouraged a spirit of mutual support among teams, particularly for those launching products on platforms like Product Hunt. It was a space where everyone could request quick assistance or advice, and in turn, contribute their expertise to others. This aspect of Forum Ventures fostered a strong sense of community and collaboration, significantly enhancing our experience and providing benefits both in receiving and offering support to fellow startups.
Addressing Early-Stage Startup Needs
Q: Were there any aspects of the program that were frustrating or could be improved?
A: While there weren’t many negatives to speak of, one area that felt slightly misaligned with our needs was the program’s strong focus on enterprise sales. For us, being a younger, early-stage team, this emphasis was less relatable and offered fewer actionable insights that we could directly apply. This focus inherently catered more towards startups that were either at a larger scale or had founders with more experience in navigating complex sales cycles and enterprise-level deals. The sentiment that the program didn’t fully cater to super early-stage startups like ours was palpable. It would have been beneficial to have more resources aimed at early-stage founders, similar to what Y Combinator provides. For example, lectures on product development, user interviews, and hiring could have offered more pertinent guidance for our stage of growth. Essentially, a broader range of resources catering to the foundational aspects of building a startup could have enhanced our experience and development during the program.
Financial Investment and Equity Exchange in the Program
Q: Did Forum Ventures provide a financial investment to your startup?
A: Yes, Forum Ventures did commit to a financial investment as part of their program. The amount was either $100,000 or $200,000, though I’m not entirely certain if it was in Canadian dollars or USD.
Q: Was this investment in exchange for equity?
A: The investment was made on a SAFE note, which is a form of agreement used in early-stage financing. This method is typically chosen for its simplicity and efficiency, allowing startups to receive funding without immediately setting a valuation. The details of this arrangement, including the specific terms and equity involved, are generally standardized and publicly available for those interested in the specifics of such agreements.
Impact of Forum Ventures on Current Success
Q: Do you believe your current success is a result of completing the Forum Ventures program?
A: The impact of Forum Ventures on our development as founders and on our current venture is undeniable. I’d say 90% of the positive outcomes we’ve experienced can be attributed to the insights and behaviors we observed from the team at Forum Ventures, especially how they worked and interacted with professionals. A significant figure in this journey was Jonah Midanik, who believed in our early-stage team and provided us with invaluable direct advice. His mentorship and the overall environment at Forum Ventures have been pivotal in shaping our approach to building and running our business, highlighting the profound influence the program has had on our trajectory.
Post-Accelerator Relationship with Forum Ventures
Q: How has your relationship with Forum Ventures evolved after completing the accelerator program?
A: Our relationship with Forum Ventures has remained positive and productive post-acceleration. We’ve successfully secured a few clients for our agency through the Forum network, which speaks volumes about the enduring and supportive connection we’ve maintained. This ongoing interaction suggests a strong, ongoing working relationship, even after transitioning away from the startup we initially brought into the program. Despite not having reached out for introductions to VCs or angel investors as of yet, I feel confident that such a request would be welcomed if the need arises. Our decision to wind down the initial company was met with understanding from Forum Ventures. They expressed a willingness to engage with us in the future, indicating an openness to continuing our professional relationship. This level of support and openness to future collaboration has been incredibly reassuring, affirming the value of ending on good terms and maintaining a network of supportive relationships in the startup ecosystem.
Advice for Aspiring Entrepreneurs and Venture Seekers
Q: What advice do you have for those looking to start their own venture or join the startup ecosystem?
A: For entrepreneurs aiming to launch or scale their startups, particularly in the AI space, there’s an encouraging trend towards achieving significant growth without relying on external capital. Companies like MidJourney are exemplifying the potential to reach unicorn status through bootstrapping, demonstrating the viability of maintaining independence and staying closely aligned with user needs and company goals. This perspective might diverge from conventional startup wisdom, but it underscores the opportunity for impactful AI products to thrive outside the traditional venture capital model. For those specifically interested in entering the venture scene or exploring startup opportunities, my recommendation is to consider local accelerators. My experience with Forum Ventures, particularly the in-person interactions and the network it provided, was invaluable. The direct engagement and community support found in such environments can be profoundly beneficial, offering resources, mentorship, and connections that are crucial in the early stages of a startup’s journey.