World Class Mentors For Scalable Startups
“What I’ve gotten has been so far beyond what I was seeking.”
Stratex / B2B Services & Technology
“The accountability, assistance, and support gained from fellow Bloxers is priceless.”
Delco / Product Manufacturing
“With their advisement and consultation, we have been able to grow from just an idea to a full rapidly growing technology company in a short amount of time.”
Weather Battle / B2C Mobile Software
"A Mini Business Empire"
Average annual revenue growth rates for our portfolio companies since 2012
Number of applications received for our program
Community on Facebook, Twitter, and Instagram
Attendees at our investment showcases
Survival Rate of our startups (SBA definition of making it to at least year three)
What is BetaBlox?
“BetaBlox is not an easy program and the feedback we get is honest with no sugar coating. But for those who are serious and committed for the long haul, BetaBlox absolutely pays off.”
Filimin / Technology Hardware [ACQUIRED]
“What I love most about Betablox is the knowledge and wisdom you gain from your mentors.”
FlexPro Meals / Food Entrepreneur
“The mentors helped me set a course that was aggressive but very strategic, and the community of other entrepreneurs helped inspire and push me to keep going, even when things were really hard.”
Custom Trailer Pros / B2B Manufacturing
Frequently Asked Questions About The Program
Gimme the gist of the program...
The first portion of the program is largely virtual education. You can get through it in a couple weeks if you’re really hustling. This is done virtually and thus can be done at your own pace.
You’ll then be paired with one of our early-stage, phase one experts. How do we get your startup pointed in the right direction with whatever resources and time we have available? To be honest, they’re dream killers (for now). They’re not going to help you raise several million dollars and build your baby from a lush office that would make Google blush. They’re going to ask the hard questions that will demand action from you regardless of circumstances. Their job is to strangle whatever last semblance of wantrapreneur perfectionist out of your body so the only thing left is an action-oriented entrepreneur. This process could last anywhere from 3-to-12 months dependent upon your speed. Although this sounds bleak, this is the difference between us an other things ‘like us’. We’re only paid when you become uber successful; thus we don’t have time to ‘play entrepreneur’. No stickers and t-shirts. No business plans. No networking events. Little planning. No reports. Build, promote, tweak – repeat. Forever. Deviate from that course. and our team will professionally set you straight.
You’ll THEN be paired with growth-stage mentors who will take your proven foundation and help you scale. This mentorship is a lot more like one would assume startup consultation is like. Still gritty. Still realistic. But a little more on fundraising, team building, next-level technology, etc. Your meetings with them will be regular and scheduled months ahead of time.
The goal of these three phases is to act like a co-founder that wants zero power or credit. We want to mirror the advice that you need, at the right time which is why we have different people and tools for each stage. As you get bigger, we shed our skin and grow a new layer of protection.
What is the cost?
5% equity ownership.
Our goal is that the BetaBlox platform will increase the likelihood that you grow big and fast; at which point one-of-three things will happen. Either (a) you’ll be acquired by a larger company for hopefully a large amount of money, (b) you’ll go public, (c) you’ll start paying dividends. Only once any of these three things happen will we take our 5%. In other words, we won’t ever charge you a dollar until you become successful; if you are unsuccessful at accomplishing any of these feats we won’t charge anything. We’ve been referred to as “success insurance”. This pricing model ultimately puts our money where our mouth is. It’s like we’re personal trainers that don’t charge you until you have abs.
A quick note on these three hopeful options: we don’t require any sort of power or voting rights. This means it’s your decision when/if you are acquired; when/if you go public; when/if you distribute dividends. We want you to grow a healthy and happy business. We’re patient, and we know that the chips will fall into place if we help you build a great company.
It mutually aligns both sides of the partnership towards long-term success and allows start-ups to acquire expensive services with no capital. If you fail, we fail. When you succeed, our percentage is far smaller than what an angel or venture capitalist typically seeks.
We are the first to admit that paying in equity is not for everyone. This is why we have The Blox: a free app with countless hours of advice and tools; AlphaBlox: for getting the education and mentorship you require; and BuildingBlox: for acquiring the services you need to build your company. These things are priced more traditionally. But for some startups finding long-term partners with skin-in-the-game is exactly what they need. If this is you, we look forward to hearing from you.
What exactly do you mean by equity?
Equity refers to the true, all-encompassing ownership of your business and its assets. This does not mean salary, revenue, or profit. We want to help businesses that reinvest the revenue they generate towards further growth. When this occurs, the equity partners’ share of profits is continually reinvested into the growth and proportionate value of the business itself. The end result is that equity partners (like ourselves) will traditionally only take a share of your incoming cash flow at liquidation periods. The average successfully liquidated business won’t reach this point until after year six and a half. Examples of liquidation events would be an IPO or acquisition (such as AT&T purchasing your business outright). To sum all of this up, we won’t collect a single cent until you reach extremely rare, long-term milestones, at which point we only take 5%.
What types of things do you look for in an aspiring BetaBlox startup?
We are looking for scalable startups with grand visions (within reason). This typically means they have a path towards selling nationally. We’re not looking to help the next coffee shop or day care center (although we love those; we have other services for them).
We love technology.
We love food companies.
We love e-commerce.
We LOVE companies in boring industries.
We LOVE weird companies.
What stage of business should I be in?
There is no stage that you are required to be in. Diversifying the businesses we choose (through industry and stage) is in our best interest. We target “start-up” companies, which traditionally means companies within their first year or two—perhaps even pre-revenue. In other words, we actively take on companies that see themselves fitting into our environment during any stage of their business. BetaBlox is designed to serve true start-ups, as well as high-growth oriented private businesses.
We always have and always will take on the occasional pre-revenue company. BUT, traction separates you from the pack. And the pack is large. What is traction and how do you get it? This is the basis for AlphaBlox.
Does it matter where I live? Where is BetaBlox located?
Honestly, it doesn’t and shouldn’t matter. We are a virtual accelerator. All of our services are provided digitally and over video/phone conferencing. The mentors/investors whom run the program live all over. Our job is to transfer our knowledge and experience to you; contrary to popular belief this doesn’t need to be done in-person.
That said, we have formal offices in Kansas City and Tulsa. KC is where we were founded, and Tulsa is where our anchor VC financiers reside.
Do you have any success stories?
We’ve successfully raised capital, created many jobs, liquidated out of more than a handful of companies, and most importantly watched some of our startups turn into the fastest growing (by revenue) startups in the Midwest.
Learn more about some of our success stories here.