diff --git a/docs/getting-started/README.md b/docs/getting-started/README.md
index 32830c9bb3..5e404d4cb6 100644
--- a/docs/getting-started/README.md
+++ b/docs/getting-started/README.md
@@ -38,7 +38,7 @@ to look at, and then launch the frontend. These commands are run from the
 project root, not inside the backend directory.
 
 ```bash
-yarn lerna run mock-catalog-data
+yarn lerna run mock-data
 yarn start
 ```
 
diff --git a/packages/backend/README.md b/packages/backend/README.md
index 64078006e7..cd71b50fb0 100644
--- a/packages/backend/README.md
+++ b/packages/backend/README.md
@@ -43,7 +43,7 @@ To get started, you can issue the following after starting the backend, from ins
 the `plugins/catalog-backend` directory:
 
 ```bash
-yarn mock-catalog-data
+yarn mock-data
 ```
 
 You should then start seeing data on `localhost:7000/catalog/entities`.
diff --git a/packages/catalog-model/src/EntityPolicies.ts b/packages/catalog-model/src/EntityPolicies.ts
index d761aa9f20..3dc7deae7c 100644
--- a/packages/catalog-model/src/EntityPolicies.ts
+++ b/packages/catalog-model/src/EntityPolicies.ts
@@ -25,6 +25,7 @@ import {
 import {
   ComponentEntityV1alpha1Policy,
   LocationEntityV1alpha1Policy,
+  TemplateEntityV1alpha1Policy,
 } from './kinds';
 import { EntityPolicy } from './types';
 
@@ -74,6 +75,7 @@ export class EntityPolicies implements EntityPolicy {
       EntityPolicies.anyOf([
         new ComponentEntityV1alpha1Policy(),
         new LocationEntityV1alpha1Policy(),
+        new TemplateEntityV1alpha1Policy(),
       ]),
     ]);
   }
diff --git a/packages/catalog-model/src/kinds/TemplateEntityV1alpha1.test.ts b/packages/catalog-model/src/kinds/TemplateEntityV1alpha1.test.ts
new file mode 100644
index 0000000000..d2e455145f
--- /dev/null
+++ b/packages/catalog-model/src/kinds/TemplateEntityV1alpha1.test.ts
@@ -0,0 +1,74 @@
+/*
+ * Copyright 2020 Spotify AB
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+import { EntityPolicy } from '../types';
+import {
+  TemplateEntityV1alpha1,
+  TemplateEntityV1alpha1Policy,
+} from './TemplateEntityV1alpha1';
+
+describe('TemplateEntityV1alpah1', () => {
+  let entity: TemplateEntityV1alpha1;
+  let policy: EntityPolicy;
+
+  beforeEach(() => {
+    entity = {
+      apiVersion: 'backstage.io/v1alpha1',
+      kind: 'Template',
+      metadata: {
+        name: 'test',
+      },
+      spec: {
+        type: 'cookiecutter',
+      },
+    };
+    policy = new TemplateEntityV1alpha1Policy();
+  });
+
+  it('happy path: accepts valid data', async () => {
+    await expect(policy.enforce(entity)).resolves.toBe(entity);
+  });
+
+  it('silently accepts v1beta1 as well', async () => {
+    (entity as any).apiVersion = 'backstage.io/v1beta1';
+    await expect(policy.enforce(entity)).resolves.toBe(entity);
+  });
+
+  it('rejects unknown apiVersion', async () => {
+    (entity as any).apiVersion = 'backstage.io/v1beta0';
+    await expect(policy.enforce(entity)).rejects.toThrow(/apiVersion/);
+  });
+
+  it('rejects unknown kind', async () => {
+    (entity as any).kind = 'Wizard';
+    await expect(policy.enforce(entity)).rejects.toThrow(/kind/);
+  });
+
+  it('rejects missing type', async () => {
+    delete (entity as any).spec.type;
+    await expect(policy.enforce(entity)).rejects.toThrow(/type/);
+  });
+
+  it('acceptps any other type', async () => {
+    (entity as any).spec.type = 'hallo';
+    await expect(policy.enforce(entity)).resolves.toBe(entity);
+  });
+
+  it('rejects empty type', async () => {
+    (entity as any).spec.type = '';
+    await expect(policy.enforce(entity)).rejects.toThrow(/type/);
+  });
+});
diff --git a/packages/catalog-model/src/kinds/TemplateEntityV1alpha1.ts b/packages/catalog-model/src/kinds/TemplateEntityV1alpha1.ts
new file mode 100644
index 0000000000..090c892294
--- /dev/null
+++ b/packages/catalog-model/src/kinds/TemplateEntityV1alpha1.ts
@@ -0,0 +1,50 @@
+/*
+ * Copyright 2020 Spotify AB
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+import * as yup from 'yup';
+import type { Entity } from '../entity/Entity';
+import type { EntityPolicy } from '../types';
+
+const API_VERSION = ['backstage.io/v1alpha1', 'backstage.io/v1beta1'] as const;
+const KIND = 'Template' as const;
+
+export interface TemplateEntityV1alpha1 extends Entity {
+  apiVersion: typeof API_VERSION[number];
+  kind: typeof KIND;
+  spec: {
+    type: string;
+  };
+}
+
+export class TemplateEntityV1alpha1Policy implements EntityPolicy {
+  private schema: yup.Schema<any>;
+
+  constructor() {
+    this.schema = yup.object<Partial<TemplateEntityV1alpha1>>({
+      apiVersion: yup.string().required().oneOf(API_VERSION),
+      kind: yup.string().required().equals([KIND]),
+      spec: yup
+        .object({
+          type: yup.string().required().min(1),
+        })
+        .required(),
+    });
+  }
+
+  async enforce(envelope: Entity): Promise<Entity> {
+    return await this.schema.validate(envelope, { strict: true });
+  }
+}
diff --git a/packages/catalog-model/src/kinds/index.ts b/packages/catalog-model/src/kinds/index.ts
index 85e22f7029..b5fad184d4 100644
--- a/packages/catalog-model/src/kinds/index.ts
+++ b/packages/catalog-model/src/kinds/index.ts
@@ -24,3 +24,8 @@ export type {
   LocationEntityV1alpha1 as LocationEntity,
   LocationEntityV1alpha1,
 } from './LocationEntityV1alpha1';
+export { TemplateEntityV1alpha1Policy } from './TemplateEntityV1alpha1';
+export type {
+  TemplateEntityV1alpha1 as TemplateEntity,
+  TemplateEntityV1alpha1,
+} from './TemplateEntityV1alpha1';
diff --git a/plugins/catalog-backend/README.md b/plugins/catalog-backend/README.md
index 2d6b365f90..246cd83d56 100644
--- a/plugins/catalog-backend/README.md
+++ b/plugins/catalog-backend/README.md
@@ -23,7 +23,7 @@ cd packages/backend
 yarn start
 
 # open another terminal window, and run the following from the very root of the Backstage project
-yarn lerna run mock-catalog-data
+yarn lerna run mock-data
 ```
 
 This will launch the full example backend and populate its catalog with some mock entities.
diff --git a/plugins/catalog-backend/package.json b/plugins/catalog-backend/package.json
index 9abfb1646a..e8b43de86a 100644
--- a/plugins/catalog-backend/package.json
+++ b/plugins/catalog-backend/package.json
@@ -13,7 +13,7 @@
     "prepack": "backstage-cli prepack",
     "postpack": "backstage-cli postpack",
     "clean": "backstage-cli clean",
-    "mock-catalog-data": "./scripts/mock-data"
+    "mock-data": "./scripts/mock-data"
   },
   "dependencies": {
     "@backstage/backend-common": "^0.1.1-alpha.8",
diff --git a/plugins/scaffolder-backend/package.json b/plugins/scaffolder-backend/package.json
index da87c707aa..2408471229 100644
--- a/plugins/scaffolder-backend/package.json
+++ b/plugins/scaffolder-backend/package.json
@@ -11,7 +11,8 @@
     "test": "backstage-cli test",
     "prepack": "backstage-cli prepack",
     "postpack": "backstage-cli postpack",
-    "clean": "backstage-cli clean"
+    "clean": "backstage-cli clean",
+    "mock-data": "./scripts/mock-data"
   },
   "dependencies": {
     "@backstage/backend-common": "^0.1.1-alpha.8",
diff --git a/plugins/scaffolder-backend/sample-templates/react-ssr-template/template-info.json b/plugins/scaffolder-backend/sample-templates/react-ssr-template/template-info.json
index 0a03fd95d6..a733b790fa 100644
--- a/plugins/scaffolder-backend/sample-templates/react-ssr-template/template-info.json
+++ b/plugins/scaffolder-backend/sample-templates/react-ssr-template/template-info.json
@@ -1,6 +1,6 @@
 {
-	"id": "react-ssr-template",
-	"name": "SSR React Website",
-	"description": "Next.js application skeleton for creating isomorphic web applications.",
-	"ownerId": "something"
+  "id": "react-ssr-template",
+  "name": "SSR React Website",
+  "description": "Next.js application skeleton for creating isomorphic web applications.",
+  "ownerId": "something"
 }
diff --git a/plugins/scaffolder-backend/sample-templates/react-ssr-template/template.yaml b/plugins/scaffolder-backend/sample-templates/react-ssr-template/template.yaml
new file mode 100644
index 0000000000..17f9ebbf7d
--- /dev/null
+++ b/plugins/scaffolder-backend/sample-templates/react-ssr-template/template.yaml
@@ -0,0 +1,10 @@
+apiVersion: backstage.io/v1alpha1
+kind: Template
+metadata:
+  name: react-ssr-template
+  title: React SSR Template
+  description: Next.js application skeleton for creating isomorphic web applications.
+spec:
+  type: cookiecutter
+  path: '.'
+
diff --git a/plugins/scaffolder-backend/scripts/mock-data b/plugins/scaffolder-backend/scripts/mock-data
new file mode 100755
index 0000000000..be3fa2b6cf
--- /dev/null
+++ b/plugins/scaffolder-backend/scripts/mock-data
@@ -0,0 +1,8 @@
+#!/usr/bin/env bash
+
+curl \
+--location \
+--request POST 'localhost:7000/catalog/locations' \
+--header 'Content-Type: application/json' \
+--data-raw "{\"type\": \"file\", \"target\": \"$(pwd)/sample-templates/react-ssr-template/template.yaml\"}"
+
diff --git a/plugins/scaffolder-backend/src/service/standaloneApplication.ts b/plugins/scaffolder-backend/src/service/standaloneApplication.ts
deleted file mode 100644
index 3ff1de01eb..0000000000
--- a/plugins/scaffolder-backend/src/service/standaloneApplication.ts
+++ /dev/null
@@ -1,55 +0,0 @@
-/*
- * Copyright 2020 Spotify AB
- *
- * Licensed under the Apache License, Version 2.0 (the "License");
- * you may not use this file except in compliance with the License.
- * You may obtain a copy of the License at
- *
- *     http://www.apache.org/licenses/LICENSE-2.0
- *
- * Unless required by applicable law or agreed to in writing, software
- * distributed under the License is distributed on an "AS IS" BASIS,
- * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
- * See the License for the specific language governing permissions and
- * limitations under the License.
- */
-
-import {
-  errorHandler,
-  notFoundHandler,
-  requestLoggingHandler,
-} from '@backstage/backend-common';
-import compression from 'compression';
-import cors from 'cors';
-import express from 'express';
-import helmet from 'helmet';
-import { Logger } from 'winston';
-import { StorageBase, TemplaterBase } from '../scaffolder';
-import { createRouter } from './router';
-
-export interface ApplicationOptions {
-  enableCors: boolean;
-  storage: StorageBase;
-  templater: TemplaterBase;
-  logger: Logger;
-}
-
-export async function createStandaloneApplication(
-  options: ApplicationOptions,
-): Promise<express.Application> {
-  const { enableCors, storage, templater, logger } = options;
-  const app = express();
-
-  app.use(helmet());
-  if (enableCors) {
-    app.use(cors());
-  }
-  app.use(compression());
-  app.use(express.json());
-  app.use(requestLoggingHandler());
-  app.use('/', await createRouter({ templater, storage, logger }));
-  app.use(notFoundHandler());
-  app.use(errorHandler());
-
-  return app;
-}
diff --git a/plugins/scaffolder-backend/src/service/standaloneServer.ts b/plugins/scaffolder-backend/src/service/standaloneServer.ts
index b89e806f72..7f553bf4bf 100644
--- a/plugins/scaffolder-backend/src/service/standaloneServer.ts
+++ b/plugins/scaffolder-backend/src/service/standaloneServer.ts
@@ -22,8 +22,8 @@ import {
   DiskStorage,
   CookieCutter,
 } from '../scaffolder';
-import { createStandaloneApplication } from './standaloneApplication';
-
+import { createServiceBuilder, useHotMemoize } from '@backstage/backend-common';
+import { createRouter } from './router';
 export interface ServerOptions {
   port: number;
   enableCors: boolean;
@@ -34,27 +34,24 @@ export async function startStandaloneServer(
   options: ServerOptions,
 ): Promise<Server> {
   const logger = options.logger.child({ service: 'scaffolder-backend' });
-  const store = new DiskStorage({ logger });
+  const store = useHotMemoize(module, () => new DiskStorage({ logger }));
   const templater = new CookieCutter();
   logger.debug('Creating application...');
 
-  const app = await createStandaloneApplication({
-    enableCors: options.enableCors,
+  const router = await createRouter({
     storage: createStorage({ store, logger }),
     templater: createTemplater({ templater }),
     logger,
   });
 
-  logger.debug('Starting application server...');
-  return await new Promise((resolve, reject) => {
-    const server = app.listen(options.port, (err?: Error) => {
-      if (err) {
-        reject(err);
-        return;
-      }
+  const service = createServiceBuilder(module)
+    .enableCors({ origin: 'http://localhost:3000' })
+    .addRouter('/catalog', router);
 
-      logger.info(`Listening on port ${options.port}`);
-      resolve(server);
-    });
+  return await service.start().catch(err => {
+    logger.error(err);
+    process.exit(1);
   });
 }
+
+module.hot?.accept();
diff --git a/plugins/scaffolder-backend/tsconfig.json b/plugins/scaffolder-backend/tsconfig.json
index 7d4ea182e2..9ca38dca27 100644
--- a/plugins/scaffolder-backend/tsconfig.json
+++ b/plugins/scaffolder-backend/tsconfig.json
@@ -1,11 +1,16 @@
 {
-  "extends": "../../packages/backend/tsconfig.json",
-  "include": [
-    "./src"
-  ],
+  "include": ["src"],
   "compilerOptions": {
-    "baseUrl": "./src",
-    "outDir": "./dist",
-    "skipLibCheck": true
+    "outDir": "dist",
+    "incremental": true,
+    "sourceMap": true,
+    "declaration": true,
+    "strict": true,
+    "target": "es2019",
+    "module": "commonjs",
+    "esModuleInterop": true,
+    "allowJs": true,
+    "lib": ["es2019"],
+    "types": ["node", "jest", "webpack-env"]
   }
 }