@TechSquare

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July 2014
The Guide To The
Atlanta Startup Scene
@TechSquare
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1995-1998
Morehouse College
1998-2002
Georgia Tech
2000-2014
CipherTrust
Secure Computing
Purewire
Barracuda
Pindrop
TechSquare Labs
1995
Moved to Atlanta
TIMELINE
Im often asked about the Atlanta startup scene and thought there
should be something that tries to explain all of the excitement and
progress. Allen convinced me to stay up one night and pull together my
thoughts. (And then it took 3 nights.) I hope that you nd it useful.
Please send me any questions or mistakes: PJudge@PJudge.com. We
are happy to host anyone that would like to visit the Atlanta startup
scene.

Bio written in third-person: (Imagine Samuel Jackson voice)
Paul is a serial entrepreneur and noted scholar. He was CTO of
CipherTrust acquired by Secure Computing then McAfee, cofounder of
Purewire acquired by Barracuda and cofounder of Pindrop. He has
invested in 30 tech startups. He currently holds over 30 patents and was
recognized by MITs Technology Review Magazine as one of the Top 100
young innovators in the world. Paul has contributed to national media
outlets including Wall Street Journal and TechCrunch. He is based in
Atlanta and spends one week per month in Silicon Valley.


ABOUT ME - AND WHY I MADE THIS
Paul Judge, PhD
@PaulJudge
@TechSquare
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1. Atlanta's past tech success
2. 25 startups to watch
3. startups by sector
4. investors
5. spaces
6. schools
7. government
8. content, media & events
9. service providers
10. F1000 companies
11. culture
12. living in Atlanta
THE GUIDE TO THE ATLANTA STARTUP SCENE
OUTLINE
@TechSquare
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High expectations are the key to everything.
Sam Walton
ATLANTAS TECH SUCCESS - A LOOK AT THE PAST
@TechSquare
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VENTURE DEALS IN GEORGIA - Q1 2012 - Q1 2014
1.1%
OF US
DEALS
$781
MILLION
104
VENTURE
DEALS
TOTAL DEALS
104 Deals since 2012
TOTAL DOLLARS
The average
investment was
$7.5 Million
PORTION OF
MARKET
This represented
1.1% of all deals and
deal dollars in the US
in that period.
Source: pwcmoneytree.com
@TechSquare
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OVER 100 EXITS IN ATLANTA
-TOTAL $60 BILLION IN VALUE
@TechSquare
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THE ACQUIRERS - ACQUIRED ATLANTA COMPANIES
@TechSquare
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PUBLICLY TRADED TECH COMPANIES - IN ATLANTA
@TechSquare
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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.
(founded in 1985, IPOed in 2004, acquired in 2007)
5. Internet Security Systems was acquired in 2006 by IBM for $1.3 billion.
(founded in 1994, IPOed in 1998, acquired in 2006)
6. Scientic Atlanta was acquired in 2006 by Cisco for $6.9 billion.
(founded in 1951, IPOed in 1959, acquired in 2006)
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
@TechSquare
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INFOSEC EXITS IN ATLANTA - $4 BILLION
$4B
INFOSEC
EXITS
CURRENT INFOSEC
COMPANIES

Ionic

Pindrop

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
@TechSquare
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MARKETING AND SALES AUTOMATION
EXITS IN ATLANTA - $750 MILLION
$750M
S&M AUTO
EXITS
CURRENT S&M AUTOMATION
COMPANIES

Mailchimp

WhatCounts

Salesloft

InsightPool
$750 MILLION IN SALES AND MARKETING AUTOMATION EXITS IN
ATLANTA

Vitrue, Reggie Bradford $300 M
Silverpop, Bill Nussey, $270 M
Pardot, David Cummings, $95 M
BLiNQ Media, David Williams, $90 M
@TechSquare
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RANKED #8 METRO AREA FOR ACQUISITIONS
- 13 IN 2013
@TechSquare
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25 ATLANTA STARTUPS TO WATCH -GROWTH STAGE
The way to get started is to quit talking and
begin doing.
Walt Disney
@TechSquare
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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
@TechSquare
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Embrace what you dont know, especially in the
beginning, because what you dont know can
become your greatest asset. It ensures that you
will absolutely be doing things different from
everybody else.
Sara Blakely, SPANX founder
ATLANTA STARTUPS - BY SECTOR
@TechSquare
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SALES & MARKETING AUTOMATION - IN ATLANTA
@TechSquare
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FINANCIAL TECH STARTUPS - IN ATLANTA
FYI:
70% of all US credit card transactions
are processed in Georgia

including
[Elavon, First Data, Global Payments, TSYS, WorldPay]
@TechSquare
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HEALTH TECH STARTUPS - IN ATLANTA
15,000
employees
$11 Billion
annual budget
Based in Atlanta
@TechSquare
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ENTERPRISE STARTUPS - IN ATLANTA
@TechSquare
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CONSUMER STARTUPS - IN ATLANTA
@TechSquare
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OTHER STARTUPS - IN ATLANTA
@TechSquare
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Chase the vision, not the money; the money will
end up following you.
Tony Hsieh, Zappos CEO
INVESTORS - ACCELERATORS, SEED, AND VC
@TechSquare
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ATDC

Atlanta Ventures Accelerator

Flashpoint

ForgeATL

Global Center for Medical

Innovation

Startup Chicks

Tech Square Labs

INCUBATORS AND ACCELERATORS
@TechSquare
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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
@TechSquare
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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
@TechSquare
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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
@TechSquare
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Risk more than others think is safe. Dream
more than others think is practical.
Howard Schultz, Starbucks CEO
PLACES - COWORKING AND HANGOUTS
@TechSquare
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ATDC

AT&T Foundry

Atlanta Tech Village

Collider

The Goat Farm Arts Center

Hypepotamus

Kollective South

151 Locust

OHub at 200 Peachtree

NEX Atlanta

ROAM

Strongbox West

Switchyards

Tech Square Labs

WORK - COWORKING, ETC.
@TechSquare
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Octane

Cypress

Starbucks on 5th & Spring

Spence

Ormsbys

The Vortex

The Ivy

Terminal West
HANGOUTS - COFFEE SHOPS & BARS
@TechSquare
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Tech Square (Midtown)

Buckhead

Alpharetta

Ponce City Market

CLUSTERS - HOT AREAS OF STARTUP ACTIVITY
@TechSquare
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Georgia Techs Technology Square is a mixed-use
development in midtown Atlanta that houses over
700,000 square feet of business, educational,
research and retail space. It is the epicenter of
technology innovation and entrepreneurship in
Atlanta and the Southeast. Georgia Techs
business school is one block to the east and
Georgia Techs computer science school is one
block to the west. The land that is Technology
Square was originally purchased by Georgia Tech
in 1997 and the development opened in 2003.
TECH SQUARE - MIDTOWN, ATLANTA, USA
@TechSquare
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The more that you read, the more things you will
know. The more that you learn, the more places
you'll go.
" Dr. Seuss, I Can Read With My Eyes Shut!
SCHOOLS - COLLEGES AND UNIVERSITIES
@TechSquare
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Atlanta ranks 7th in college enrollment with 275,000 students
Atlanta ranks 5th in university research with $1.49 billion in
expenditures
Atlanta has 60,000 students enrolled in 7 technical colleges
STATS ABOUT SCHOOLS - TALENT AND RESEARCH
@TechSquare
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Georgia Tech

Emory

Georgia State

SCAD

Morehouse

Spelman

Clark Atlanta University

Ogelthorpe University

Kennesaw State

Mercer

Agnes Scott

University of Georgia (1 hr away)

SCHOOLS - HIGHER EDUCATION IN ATLANTA
@TechSquare
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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 the

nation's top ve by the magazine.

Techs industrial engineering program has been ranked #1 for more

than 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 in

the top 10.

400-acre campus in the heart of Atlanta

100 interdisciplinary research units

14,500 undergraduate students and 6,900 graduate students

source: gatech.edu
President
Bud Peterson
GEORGIA TECH - WE CAN DO THAT
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ATDC

Enterprise Innovation Institute

Georgia Tech Research Institute

Georgia Research Alliance

InVenture Prize

Invention Studio

Capstone Design

Venture Lab

StartupExchange

Startup Lab

Startup Summer
GEORGIA TECH & ENTREPRENEURSHIP - COMMITTED
@TechSquare
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In Atlanta Since 2014 In Atlanta Since 2014
Merged with Highgroove in
2012
PROGRAMMING EDUCATION - IN ATLANTA
@TechSquare
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entrepreneurs also play a critical role in
expanding our economy and creating jobs."
President Barack Obama
GOVERNMENT - SUPPORTIVE OF STARTUPS & TECH
@TechSquare
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CITY OF ATLANTA - STARTUP AND TECH SUPPORT

Mayor Kasim Reed

City Council President Ceasar Mitchell

Councilman Kwanza Hall

Invest Atlanta

Startup Atlanta

Atlanta City Hackathon

@TechSquare
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STATE OF GEORGIA - STARTUP AND TECH SUPPORT

HB 958: Video Game $25M Tax Break

April 2014, extending 2008 law

HB 318: Georgia Angel Tax Investor Credit

March 2013, extending 2010 law

Invest Georgia Exemption: Intrastate Equity-based

Crowdfunding for non-accredited investors.

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

@TechSquare
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Entrepreneurial communities have to be led by
entrepreneurs"
Brad Feld
CONTENT & EVENTS - MEDIA AND GATHERINGS
@TechSquare
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MEETUPS - 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+)

@TechSquare
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ASSOCIATIONS - SUPPORTING THE MEMBERS

Technology Association of Georgia

TiE Atlanta

Metro Atlanta Chamber

Atlanta CEO Council

ChooseATL.com

Technology Executive Roundtable

@TechSquare
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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
add AP, AJC
@TechSquare
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facebook.com/groups/techsquare

www.bizjournals.com/atlanta/blog/atlantech

hypepotamus.com

AcademicVC.org

AllenNance.com

atlantatechblogs.com

DavidCummings.org

JonBirdsong.com

blog.weatherby.net

notonlyluck.com

blog.salesloft.com

ventureatlanta.org
STARTUP BLOGS IN ATLANTA - RECOMMENDED LIST
@TechSquare
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HACKATHONS - FUN & PRODUCTIVE

HackGT @ Georgia Tech

Startup Weekend Atlanta

Coca-Cola Startup Weekend

AT&T Foundry Hackathon

Govathon by Startup Atlanta

Emory Hackathon

Healthcare Hackathon
@TechSquare
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CONFERENCES - AND OTHER EVENTS

Digital Summit

Venture Atlanta

TAG Business Launch Competition

Southeast Venture Conference

MIT Enterprise Forum - Atlanta

Startup Lounge

Hacker Halted

Startup Chowdown

Startup Drinks

Startup Riot

Founder Fables
@TechSquare
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If youre not a risk taker, you should get the hell
out of business.
Ray Kroc, McDonalds founder

PROFESSIONAL SERVICES - PROVIDERS
@TechSquare
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LEGAL

HA&W

TechCXO

Cheery Bekaert

Acuity CFO
ACCOUNTANTS REAL ESTATE
BANKS

Silicon Valley Bank

Square 1

CBRE

Cushman Wakeeld

Icon

DLA Piper

Morris Manning &

Martin

Nelson Mullins

Sutherland
OTHER

Arketi

Friendly Human

Peachtree Supplies

TriNet

ZAG PR
PROFESSIONAL SERVICES - PROVIDERS
@TechSquare
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Your most unhappy customers are your
greatest source of learning.
Bill Gates, Microsoft co-founder
ENTERPRISE COMPANIES - FORTUNE 1000
@TechSquare
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source: Metro Atlanta Chamber, Fortune Magazine
FORTUNE 1000 IN ATLANTA - STATS
27 FORTUNE 1000
companies headquartered in metro Atlanta


15 FORTUNE 500
companies headquartered in metro Atlanta


$359.6 Billion
revenue of Metro Atlantas headquartered FORTUNE 1000
@TechSquare
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source: Metro Atlanta Chamber, Fortune Magazine
FORTUNE 500 IN ATLANTA - REVENUE
@TechSquare
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source: Metro Atlanta Chamber, Fortune Magazine
FORTUNE 500 IN ATLANTA - LOGOS
@TechSquare
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source: Metro Atlanta Chamber, Fortune Magazine
FORTUNE 1000 IN ATLANTA - LOGOS
@TechSquare
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source: philanthropy.com
NON PROFITS IN ATLANTA - Five of the Top 20
Five of the Top 20 Non-prots in the US are based in Atlanta
@TechSquare
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And a lot of things in hip hop are very instructive
for being in business. Particularly, hip hop is a
lot about business, and so it was very useful for
me in any job.
- Ben Horowitz
CULTURE
- KEY TO CONSUMER INNOVATION AND ADOPTION
@TechSquare
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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., Usher
and Young Jeezy. Execs: L.A. Reid, Babyface

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

Gospel and Contemporary Christian: Francesca Battistelli, Casting

Crowns, 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
@TechSquare
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FILM AND TV - DEEP HISTORY AND FAST GROWTH

In FY 2013, $3.3 billion invested in Georgia by television

networks, Hollywood studios, and producers

700 feature lms, TV movies, TV series, single episodes and

pilots produced in Georgia since 1972
source: georgia.org
HEADQUARTERED
IN ATLANTA
@TechSquare
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NBA NFL
WNBA MLS
coming in
2017
SPORTS - EVERY PROFESSIONAL LEAGUE
MLB
@TechSquare
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Work Hard, Play Hard
Unknown
LIVING IN ATLANTA - QUALITY OF LIFE
@TechSquare
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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 by

women 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
@TechSquare
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COST OF LIVING - BELOW U.S. AVERAGE
source: Metro Atlanta Chamber
@TechSquare
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Most traveled airport in the world

95 million passengers a year

Nonstop flights to 160 domestic

destinations and almost 70
international destinations in 45
countries

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
@TechSquare
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"See we do it for that boy that graduated/
That looked you in your eyes real tough and said preciate it
Andre 3000 of Outkast
SUMMARY - AND NEXT STEPS
@TechSquare
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WAYS 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.

ATLANTASTARTUPJOBS@TECHSQUARE.CO
3. GET FUNDING

HAVE A STARTUP (IN ATLANTA OR THAT WANTS TO MOVE TO ATLANTA)? SUBMIT TO OUR SEED
INVESTMENT TEAM: INVESTING@TECHSQUARE.CO
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: TOUR@TECHSQUARE.CO
5. JOIN MAILING LIST FOR UPDATES

BIT.LY/ATLANTASTARTUPS
@TechSquare
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TechSquare Labs was founded by Paul Judge and Allen Nance to continue their
passion for early stage technology company building and investing. They are
both graduates of Georgia Tech, accomplished entrepreneurs, and technology
community influencers. Over the last ten years they have helped start seven
companies, created 1000 jobs, and raised over $100 million from notable
investors.

Now they are aiming to help create more unicorns in Atlanta. So far their active
portfolio includes 4 startups located in Technology Square that employ over 70
team members, 40 of which attended Georgia Tech including 7 Ph.Ds. These
companies 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 been
recognized by both Georgia Trend and the Atlanta Business Chronicle as a 40 Under
40 to watch. As CEO he led WhatCounts to three Inc. 500 awards representing the
fastest growing private companies in America. He is also a member of Young
Presidents Organization (YPO).
@TechSquare
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THANKS - COME PARTICIPATE
It is better than ever.
Come participate.
Create, Build, Invest, Grow.



The Atlanta Startup Scene


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