Jumpstart draws applicants from Silicon Valley, Chicago

For years, company founders have moved to Silicon Valley and San Francisco to build their business and take advantage of the depth of resources there — investors, tech talent and fellow entrepreneurs.

So, it's significant that founders of a San Francisco startup are looking to Nashville as their next home. The allure includes $100,000 and a network of health care experts through Jumpstart Foundry.

Medko, created in 2012, is a five-person company that helps individuals find health care solutions abroad — procedures that are more expensive or unavailable in the United States. The Medko founders — each from San Francisco — sought a health care accelerator and discovered Jumpstart on startup network FS6.com.

"Jumpstart stood out based on the mentors," said Medko co-founder Nick Kwan. "A lot of them were doctors, VPs of health startups, work(ed) at insurance companies. Before it was health concentrated, it already had a really good network. The fact that they narrowed their focus said a lot to us."

In the past year Jumpstart Foundry has upped its game. The 14-week program now is devoted entirely to health care companies that will receive a $100,000 equity investment, up from $15,000 in previous years. Startup teams from across the United States — Silicon Valley, Chicago, Texas, Florida, etc. — and from other countries, have taken notice, said Vic Gatto, Jumpstart Foundry CEO and founder.

"There is interest from all over the world," Gatto said. "It's more and higher quality than usual. We were hoping that the increase in benefits, both cash and non-cash benefits, and that the focus on health care would drive quality. There's no question it has."

Jumpstart executives have begun narrowing the pool of candidates. The selection committee, which includes Jumpstart investors, met Monday evening to determine the last wave of interviews. More than 250 companies have applied, with 40 percent of candidate companies applying from Nashville.

While Jumpstart has attracted close to 200 applicants in past years, Gatto said they have not been as developed. This year, many applicants have a product out already and are generating revenue, or in some cases, positive earnings.

Some, like Medko, have completed another business accelerator. In 2013, Medko participated in Startup Chile, a six-month program in Santiago, where two Medko employees are still based. They were able to meet with doctors in the region and have so far developed a network of 3,400 doctors by concentrating mainly in Latin America.

Now, the Medko founders want to concentrate on building their patient base, and based on search analytics for certain procedures and high medical debt rates, they see the greatest patient potential in the South.

"We wanted to get our boots on the ground wherever our users were," Kwan said. "Nashville could be a great hub."

Reach Jamie McGee at 615-259-8071 and on Twitter @JamieMcGee_.