Introducing Zebra Labs
Q: Can you introduce yourself and your startup?
A: I’m Scarlett Li, the founder of Zebra Labs. Our startup is focused on creating virtual humans and idols, as well as producing content for the metaverse, including virtual concerts. My background spans music TV content production for an Asian music brand Channel V and many years in organizing real-life concerts and festivals, I used to organize a famous EDM festival EDC in China. This experience has given me valuable insights into the potential of virtual idols and assets, which I believe will play a significant role in the future of entertainment within the metaverse over the next decade.
Currently, Zebra Labs has developed two virtual idols, one is focused on a 3D AI chat companion for teens, and the other with plans for her to perform at physical concerts. This approach merges traditional and digital entertainment, paving the way for our eventual full venture into virtual concerts.
Why SOSV?
Q: What motivated you to join the SOSV accelerator?
A: Joining SOSV was a decision heavily influenced by my relationship with William Bao Bing, who manages the accelerator and has been a friend for over a decade. After selling my last business, one of China’s largest concert and music festival enterprises in 2019, I took a sabbatical in the US and France. Upon returning to China, I decided to pursue the virtual idol business. Sharing this idea with William led to his immediate interest in investing.
The Application Process for SOSV
Q: Did you go through the application process for SOSV?
A: While there was a formal process of submitting information for the SOSV accelerator, my acceptance into the program was somewhat direct, thanks to William’s quick decision to invest in my project. Despite our friendship, I provided all the required details for the application. William’s familiarity with my entrepreneurial journey, having successfully founded and sold companies before, played a significant role in my swift acceptance into SOSV.
Inside the SOSV Accelerator Program
Q: Which specific SOSV accelerator program did you join?
A: I joined what was originally known as the SOSV China Accelerator. It was tailored to help entrepreneurs like myself dive into the metaverse and leverage technology in our ventures, bridging my past experience in traditional entertainment with the future of digital engagement.
Q: How long was the duration of the SOSV accelerator program?
A: The program lasted for about 6-7 months, providing comprehensive coaching that covered a wide range of essential skills for startup founders. This included crafting an investment PowerPoint presentation, mastering the art of pitching to investors, and effectively presenting my business within a tight five-minute timeframe. Despite having previous experience with these aspects in my earlier ventures, the accelerator served as a valuable refresher course, helping me to hone these skills once again.
Q: What was your experience like inside the SOSV accelerator program?
A: The SOSV accelerator program was a transformative experience for me. Having spent a decade running my own business in the traditional entertainment sector, I found myself somewhat disconnected from the startup mindset of beginning from scratch.
The program effectively reacquainted me with the initial stages of business development, especially in an industry that was new to me. Transitioning from the conventional entertainment business to the realm of the metaverse and technology required a significant shift. SOSV played a crucial role in this transition, providing access to a network of VCs and resources within the metaverse and technology sectors. This support was invaluable both mentally and in terms of resources, facilitating my venture into a new and unfamiliar industry.
Q: Did you have access to mentors during the program?
A: The program facilitated numerous meetings with mentors through a format akin to speed dating, where we engaged with each mentor for about five minutes before moving on to the next. This setup allowed me to connect with a wide array of mentors, offering diverse perspectives and advice suited to different stages of my startup’s development.
Q: How did the mentorship and networking opportunities work within the program?
A: The SOSV accelerator provided a robust network for reaching out to mentors, designed to cater to the evolving needs of a startup. Recognizing that the requirements for mentorship change as a company progresses, the program made it possible to connect with mentors who could deliver targeted advice and support at each stage. One of the critical areas of support was in recruitment, which is vital for a growing startup. Through SOSV’s network, I was able to hire my first HR professional and set up our initial accounting processes, which were crucial steps in establishing the company’s foundation. This support was instrumental in the early days before we transitioned to managing these functions in-house.
Funding and Support from the SOSV Accelerator Program
Q: Did the SOSV accelerator program provide funding?
A: SOSV contributed funding towards the end of my friends and family’s fundraising round. This investment was crucial in elevating our startup from its initial stages to a more established position.
Q: How does SOSV’s investment approach compare to typical accelerators?
A: Unlike some accelerators that offer a predefined amount of funding as companies join the program, SOSV’s approach was to invest as part of our fundraising efforts. This support, combined with their mentorship, significantly propelled our growth. With their help, we were able to successfully raise a $5 million round, marking a significant milestone in our development. Now, two years later, we can look back and appreciate the substantial impact SOSV’s program had on our success.
Achieving Milestones and Overcoming Challenges
Q: What was the most significant milestone you achieved during your time with the SOSV accelerator?
A: The most profound milestone wasn’t a specific financial goal or product launch; it was the realization of the value of being part of an accelerator community. The journey of starting up can often feel isolating, filled with challenges and “lonely nights.” However, being part of SOSV’s accelerator meant having a network of peers and a supportive organization to reach out to, which significantly alleviated the sense of isolation. This community acts akin to having a co-founder or an extended team, offering support through every difficulty faced by a startup. The ability to connect with co-founders, mentors, and the accelerator’s staff for immediate needs or advice was invaluable. Beyond just business issues, the comprehensive support system provided by SOSV was the most significant milestone, fostering a sense of belonging and resilience throughout the startup journey.
Q: Looking back, did you encounter any challenges or aspects you would approach differently now?
A: Reflecting on the journey, it’s evident that challenges were a constant companion, though it’s hard to say if I would do things differently. However, with the perspective I have now, especially considering the advancements in AI and other technologies over the past two years, my advice to new founders would be to lean towards a leaner operational model. Initially, I wouldn’t recommend hiring full-time roles for HR, accounting, or other administrative functions. Instead, outsourcing these tasks can be more cost-effective and help maintain a healthier cash flow, which is crucial in today’s economic environment. This approach allows for more flexibility and efficiency, especially in the early stages of a startup’s development.
Q: Would you change anything about the accelerator program?
A: While the SOSV accelerator program was incredibly beneficial, there’s an aspect I believe could be enhanced: the precision in mentor matching. Reflecting on my own experience as a third-time entrepreneur, my needs from a mentor, especially someone deeply knowledgeable about my specific industry, were quite distinct. In contrast, a first-time founder fresh out of university might require guidance of a different nature. Improving the accuracy and specificity of mentor matching to better align with the founders’ stages and industry needs would significantly enhance the value derived from the program. This tailored approach to mentorship could provide more targeted support and insights, making the mentorship experience more impactful for each participant.
Current Status and Future Milestones of Zebra Labs
Q: What is the current status of Zebra Labs and what milestones are you looking forward to?
A: Two years into our journey, Zebra Labs remains in a strong financial position, preparing to enter an A+ funding round. Despite the challenges posed by COVID, our strategic fundraising during the pre-A round has left us well-capitalized, enabling us to sustain operations for another two years without immediate financial pressure. We’re actively expanding our business by integrating new ventures to enhance cash flow and profitability. I’m optimistic about our trajectory and the progress we’re making.
Q: Has Zebra Labs started generating revenue?
A: We’ve begun booking revenue and our virtual idols have garnered international awards, affirming the quality and appeal of our content within the industry. Our active engagement on social media platforms has also built a significant following, contributing to our visibility and popularity. These achievements reflect the positive reception of our work and mark satisfactory progress in our development.
Final Advice for Founders Considering SOSV
Q: Do you have any final advice for founders thinking about applying to SOSV programs?
A: The journey of starting a company is filled with unpredictability, and my key piece of advice for founders considering SOSV or any accelerator is to be prepared for constant change. Despite starting with a solid business plan, you’ll inevitably encounter numerous challenges that may require significant adjustments to your strategy. The investment landscape can also shift, affecting your fundraising timelines and strategies. It’s crucial to monitor your cash flow closely and be willing to adapt your business model based on the current fundraising climate. This flexibility and readiness to pivot, while keeping a close eye on market dynamics, are essential for navigating the early stages of your startup successfully.