Microsoft has announced the launch of its new incubator program called Pegasus. Pegasus is an extension of the Startup Founders Hub, Microsoft’s self service platform that provides founders with free resources including Azure Credits.
Pegasus is a two-year program open to startups already active in Microsoft’s Founders Hub and has customer-facing products built on the Microsoft Cloud. According to reports, Hans Yang, general manager of Microsoft for Startups explained that in this new program, startups with products that fill a market need will be selected and given up to $350,000 in Azure, GitHub and LinkedIn credits.
Selected startups will also have access to the best Microsoft tech and backing from advisors. They will have a vertical lead assigned to them who will also act as an advisor. They will also get a success manager.
Yang stressed that a core requirement is having early product-market fit , including revenue traction, a ready sales team and a proven go-to- market model. These, he said, shows that they are ready to market to enterprise customers.
He revealed that one of the things the team will be looking out for in a potential Pegasus startup is a solution that caters to current industry challenges. Their solutions must be relevant enough for enterprises to invest in and get a short term return on investment .
Pegasus has no restrictions on the number of startups that can join the program, but Yang points out that industries that will attract special attention include healthcare, retail, AI, and cybersecurity, with enthusiastic emphasis on generative AI.
“As the AI era takes shape, enterprise companies are looking for ways to embrace generative AI, which presents a tremendous opportunity for startups who can help them on that journey,” Yang said. “Broadly, we believe that every startup, regardless of the industry they serve, should be exploring how they incorporate generative AI into their product roadmap.”
While Pegasus favors startups built with Azure, Yang assures companies and partners of the flexibility to use multiple clouds, including Google Cloud and Amazon Web Services if they choose to, as long as they keep meeting customers’ needs.
Startups get a dedicated cloud solution architect to support their technical success and help them with their chosen access to Azure AI offerings.
Microsoft claims that Pegasus has already supported more than 100 startups with average deal size above $300,000 and Pegasus will partner with VCs and accelerators to back 10,000 companies in Africa over the next five years.
