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"Those invited to join are asked to pay a $5,000 participation fee and to donate a 1 percent equity stake." Thanks, but, no, thanks.

by kgtm 16y ago

mikeryan 16y ago
I dunno I get what you're saying. But these stakes seem small. Consider YC gives you only ~20k for a 6-7% stake. (This is, of course, pre the 150k startup fund offer) Both programs really offer access to tools to creating a successful business. 5k and 1% seems a very small price to pay for access to something that seems like a very successful incubator program. Let me put it this way, if 5k + 1% were the cost of joining YC I'd do that in a heartbeat.
- ajju 16y ago
  Regardless of the amount, I have a philosophical problem with an incubator that compares itself to an angel fund / investor and then charges a cash fee for participation. You can do one or the other, but not both. The difference between YC and them is that first of all YC gives you money in exchange for an equity stake. Secondly, YC has proven itself many times over now to the point where I am sure people would pay significantly more than 5k if they charged it. Had YC charged 5K in Summer of 2005 you'd have seen them pooh-poohed, and rightly so. Also, I think encouraging women to be entrepreneurs is noble, but the person being interviewed is not helping by saying that YC is wrong for women because "society doesn't support women moving for 3 months" yet. Argue for society's limitations and sure enough, they are yours [1]. “Number one, most incubators require you to be on site, at least part of the time, for several months,” she points out. “Vivek Wadhwa has done research to show that the average entrepreneur is 35 and has 1.2 children. I don’t know many adults with children that will relocate to an incubator with the Y Combinator model. Society doesn’t support that yet, so that women can up and move for three months.” 1. With apologies to R.B.
- kgtm 16y ago
  But Astia does not give you money. Y Combinator does, on top of offering everything Astia has to offer. Oh, and YC also pays (a part of) your ticket to the US.
simonw 16y ago
With a bit more context: """ Those invited to join are asked to pay a $5,000 participation fee and to donate a 1 percent equity stake. The fee used to be lower, but Vosmek discovered that the more Astia charged, the higher the caliber of the companies that applied. “When we charged enough, people really showed up and were really committed to it, and their success rate really took off,” she says. """ Of course, it's possible that charging a $5,000 fee also filters out some companies that are less likely to succeed in the first place.
bhousel 16y ago
$5000 might not be such a bad deal, if that money includes setup and legal fees performed by a for-real law firm. Also consultation, trademark and patent services, etc. And 1% equity is really great. You won't find an accelerator taking less than that. However, I always think it's funny when people quibble over the amount of equity that an accelerator takes. If you succeed, that 1% won't matter. If you fail, that 1% really won't matter. :)

"Those invited to join are asked to pay a $5,000 participation fee and to donate a 1 percent equity stake." Thanks, but, no, thanks.

by kgtm 16y ago

"Those invited to join are asked to pay a $5,000 participation fee and to donate a 1 percent equity stake." Thanks, but, no, thanks.

mikeryan 16y ago

I dunno I get what you're saying. But these stakes seem small. Consider YC gives you only ~20k for a 6-7% stake. (This is, of course, pre the 150k startup fund offer) Both programs really offer access to tools to creating a successful business. 5k and 1% seems a very small price to pay for access to something that seems like a very successful incubator program. Let me put it this way, if 5k + 1% were the cost of joining YC I'd do that in a heartbeat.

ajju 16y ago
Regardless of the amount, I have a philosophical problem with an incubator that compares itself to an angel fund / investor and then charges a cash fee for participation. You can do one or the other, but not both. The difference between YC and them is that first of all YC gives you money in exchange for an equity stake. Secondly, YC has proven itself many times over now to the point where I am sure people would pay significantly more than 5k if they charged it. Had YC charged 5K in Summer of 2005 you'd have seen them pooh-poohed, and rightly so. Also, I think encouraging women to be entrepreneurs is noble, but the person being interviewed is not helping by saying that YC is wrong for women because "society doesn't support women moving for 3 months" yet. Argue for society's limitations and sure enough, they are yours [1]. “Number one, most incubators require you to be on site, at least part of the time, for several months,” she points out. “Vivek Wadhwa has done research to show that the average entrepreneur is 35 and has 1.2 children. I don’t know many adults with children that will relocate to an incubator with the Y Combinator model. Society doesn’t support that yet, so that women can up and move for three months.” 1. With apologies to R.B.
kgtm 16y ago
But Astia does not give you money. Y Combinator does, on top of offering everything Astia has to offer. Oh, and YC also pays (a part of) your ticket to the US.

simonw 16y ago

With a bit more context: """ Those invited to join are asked to pay a $5,000 participation fee and to donate a 1 percent equity stake. The fee used to be lower, but Vosmek discovered that the more Astia charged, the higher the caliber of the companies that applied. “When we charged enough, people really showed up and were really committed to it, and their success rate really took off,” she says. """ Of course, it's possible that charging a $5,000 fee also filters out some companies that are less likely to succeed in the first place.

bhousel 16y ago

$5000 might not be such a bad deal, if that money includes setup and legal fees performed by a for-real law firm. Also consultation, trademark and patent services, etc. And 1% equity is really great. You won't find an accelerator taking less than that. However, I always think it's funny when people quibble over the amount of equity that an accelerator takes. If you succeed, that 1% won't matter. If you fail, that 1% really won't matter. :)