Q: What types of companies are you seeking for HubX-LifeSciences?

A: We’re seeking primarily digital health care IT companies and companies who deliver innovative health care services. However, we’re also open to companies attempting to commercialize a medical device. Unfortunately, we won’t be able to accept companies specializing in therapeutics and diagnostics.

Q: How much investment capital will each HubX-LifeSciences company receive – both initially and at the conclusion of the program – and for what amount of equity?

A: Each health care IT and health care services company will receive $25,000 of up-front investment, and each medical device company will receive $50,000. Front-end investments will be made via a SAFE agreement, with a $2.5 million cap and a 15% discount rate. The holders of this future equity will be the financial investors: Baptist Health and Arkansas Blue Cross and Blue Shield. There will be a sizeable pool of additional capital available for back-end investments, as well. These investments could come from Baptist Health and Arkansas Blue Cross and Blue Shield as well as from Arkansas’ well-developed angel investment community. Back-end investments will be made on terms negotiated between the company and investor(s).

Additionally, the Arkansas Regional Innovation Hub will receive $25,000 in future equity in your company (again, via the SAFE agreement), in exchange for administering the accelerator. We believe these terms are founder-friendly, and established to help recruit a world-class cohort of companies into HubX-LifeSciences.

Q: Will I or my team be required to move to Little Rock for the duration of HubX-LifeSciences?

A: HubX-Life Sciences will be an intensive, 13-week program from April 4, 2016 through June 30, 2016. To achieve the maximum benefits of the program (including relationship development with the Baptist and Blue Cross leadership teams), participants need to be located here during the program. At a minimum, at least one company founder must be located here for at least the first seven weeks. We want to be remain flexible in order to recruit the most talented teams, but the more of your team you can commit to being here for the duration of the program, the more attractive your application will be.
Q: Will there be housing available during the program, and at what cost?

A: For those teams who are interested, we are offering lodging during the course of the accelerator at the Baptist Health on-site hotel at their West Little Rock campus for $300/month/room, and that includes breakfast. For those teams who would rather stay closer to the Innovation Hub in downtown North Little Rock (site of HubX-LifeSciences), our team can help you arrange for lodging in and around downtown Little Rock and North Little Rock. Some of these properties are within walking distance of the Innovation Hub and to numerous downtown bars and restaurants.
Q: How much of the proceeds from my initial investment capital will be required to be spent on legal or other services?

A: On Day 1 of HubX-LifeSciences, we will begin the program with a document signing ceremony wherein you will execute a package of legal documents to convert your company to a Deleware C Corp (if you haven’t done so), document the investments into your company, and various other things. These documents will help position your company for raising capital and prepare you for success. The documents will be prepared by Jamie Fugitt at PPGMR Law, who represents more early stage companies in Arkansas than any other attorney. He has an outstanding reputation among both entrepreneurs and investors, and was our first choice to represent each of the companies in HubX-LifeSciences. You will pay $1,200 for the creation of these documents, which represents a substantial discount from what an entrepreneur would normally pay. These are the only funds you’ll be required to spend from your initial capital investment. If your company already has legal counsel, you may choose to use them. However, you will be required to use the forms (or substantially similar documents) prepared and provided by HubX-LifeSciences and your fee arrangement with your legal counsel will be negotiated separately by you and your counsel.
Q: What are the general day-to-day time requirements during HubX-LifeSciences?

A: We’ve developed a rigorous program modeled on accelerator best practices across the country. A good portion of the program will be dedicated to learning and executing the lean startup/customer discovery process. Additionally, you will be working extensively with the management teams at Baptist Health and Arkansas Blue Cross and Blue Shield, as well as focused work with Arkansas’ premier attorneys, advertising and PR firms, and financial and accounting firms, all at no out-of-pocket costs to you. As such, the time commitments (especially in the earlier stages of the accelerator) will be intense. As we move through the program, more flexibility will be introduced so that each company can do the unique work and receive the unique guidance that’s relevant for each.
Q: How much access will I have to the senior leadership teams at Baptist Health and Arkansas Blue Cross and Blue Shield?

A: You will have extensive access. Each of these organizations is sponsoring the accelerator because each wants to invest in and empower health care innovation, and each has strong support for HubX-LifeSciences at the very top of the organization. We want you to cultivate relationships with the senior leadership teams, and will do everything we can to ensure you’re getting the access and guidance you need. Access to the state’s largest hospital system and the state’s largest payer is a differentiating factor for our accelerator, and we intend to translate that to being a differentiating factor for the trajectory of your company.
Q: Is a technical co-founder for my team required?

A: While not required, in our investing experience, teams with technical co-founders have an execution advantage as such an individual enables companies to rapidly pivot and incorporate lessons learned through customer discovery. As such, having a technical co-founder will make your application stronger. And even better if your technical co-founder can relocate to Little Rock for the duration of the program.
Q: When will we be notified of our acceptance into HubX-LifeSciences?

A: Applications will close February 15, 2016, and we plan to send extend invitations by March 1, 2016.