3 ms·

First point. $6000 in funding that comes with all these restrictions and gives away 9% of ownership is a terrible deal. It values your company at only $67,000.

by bugsy 16y ago

First point. $6000 in funding that comes with all these restrictions and gives away 9% of ownership is a terrible deal. It values your company at only $67,000. If your company is only going to be worth $67,000 or less you should stop what you are doing right now and get a job working in services or retail. On the other hand, if your company is worth much more than $67k, then this is not a good deal at all. VCs are not going to invest unless they think the company will be worth much more than $67k. Second point. If you need $6000 and somehow have not managed to save $6000 in the bank working as an engineer or designer then you should also reconsider whether you have the skills to create a successful tech company out of nothing. Third point. If you can't get a credit card with a greater than $6000 limit because of poor credit, please consider whether your financial skills are conducive to running a business. Summary. If $6000 is what you need to launch your company, borrow the money from mom, sell your car, or get a job for a couple months and save it.

eel 16y ago
In regards to the first point, note that it's $6000 per founder as well, so they are investing between $6000 and $30000 per company. The amounts seem to be in line with other tech accelerators. Also, the hope that these tech accelerators / incubators seem to have is that the money is only a small part of the value that they bring to the startup. The mentorship and connections that they will supposedly bring could be worth much more than the seed funding. That said, since we don't know their ability to bring in good mentors and connections/investors, it might not be a good idea. So I kind of agree with you there.
crawdad1313 16y ago
Bugsy, First point: Then don't apply. Second point - Read... Then read some more. Do a little research on what you get when you are accepted by an accelerator. We are not fortunate enough to have a benefactor like Yuri Milner who is blind betting on an entire system (yet), but then neither are the companies we will fund. We fall directly in line with what most other accelerators invest. Third and most important point: It's not really about the money. I think if you asked folks who had successfully started, built and exited from an early stage company, if they would give up between 6%-9% to be able to "accelerate their personal and business development; get expert legal advice; learn how to build decent financial models; learn how to build and manage a team; get their software built; get to work closely with and get exposed to hundreds of investors... they would say "absolutely" at least they would if they were smart. Plus, most accelerators bring in investors to help companies learn how to write a good investor pitch, build a strong case for their business and present themselves in a way that investors feel comfortable with. The they turn around and listen to the pitches from companies that they helped mold. The advantage of this model is too obvious to require elaboration. Eel was right when speaking of the REAL benefits. Unfortunately, we haven't done a very good job communicating who our "Captains" (mentors, advisors, investors and friends) are. There will be a more detailed list of mentors and investors on the site shortly, but I assure you that we have the chops and the connections to make the Project Skyway experience a a worthwhile endeavor for early stage tech companies. So, forget about the $6k. It is there to get you through three months; to pay your cell bill; buy groceries and keep you from having to supplement your income to a degree that you can't focus on your company, your customers, your products and your personal development. It is there to help you become the full-time, balls-out, "Go Big or Go Home" entrepreneur that you will have to be in order to be successful.
- bugsy 16y ago
  Regarding applying, I run my own business and I am sure I make more than all you guys combined. My comments are because this is posted on HN not on your web site and I have a right to comment. Maybe some kids will read my comments and realize how bizarre a $6000 offer is all things considered. Sure, I understand that you are claiming to provide all sorts of introductions to power players, politicians and the illuminati who your site implies are your close and personal friends. Presumably then like Facebook one can get laws passed requiring internet ID and position themselves to get a monopoly. Work the system and create a global police state rather than provide a solid product customers want and choose to use voluntarily because it is valuable to them. Not all creators want to go the route of leveraging politicians with bribes and back door deals to succeed. Some of us just want to make a solid product free from interference from so corrupted politicians working to squash entrepreneurs that don't cut them in for a share as if they are the mafia. Who are you guys again? How many successful businesses have you founded? Which politicians exactly are you related to and what are examples of your past successes influencing them in subversion of democracy? A lot of innuendo, very little specifics. It all sounds like a bunch of big talkers looking to grab a slide of ownership of a bunch of companies for peanuts when those companies don't need any such help to succeed. My opinion would be different if the offers weren't so tiny. $6000 is nothing. Typical software product should be selling $6000 worth in a day or at most a week or what is the point.
  - deleted 16y ago
    [deleted]
    - bugsy 16y ago
      I love it when people dig through old unrelated comments to try and drag out things in a reputation attack. Gosh the next stage is surely the criminal background check so one can triumphantly proclaim: "Bugsy was cited for drug paraphenalia possession in 1983!" It shows how weak the party's position is to resort to such attacks. You should definitely spend a few days digging through all my comments. Feel free to drag out every thing I ever said and put it on parade in this thread in your counter attack. It's a great distraction from the points at hand and panders to the People magazine crowd much more effectively than than presenting a well thought response. It's fantastic, I love it. Good luck to you in your activities, parasitical and otherwise.

by bugsy 16y ago

eel 16y ago

In regards to the first point, note that it's $6000 per founder as well, so they are investing between $6000 and $30000 per company. The amounts seem to be in line with other tech accelerators. Also, the hope that these tech accelerators / incubators seem to have is that the money is only a small part of the value that they bring to the startup. The mentorship and connections that they will supposedly bring could be worth much more than the seed funding. That said, since we don't know their ability to bring in good mentors and connections/investors, it might not be a good idea. So I kind of agree with you there.

crawdad1313 16y ago

Bugsy, First point: Then don't apply. Second point - Read... Then read some more. Do a little research on what you get when you are accepted by an accelerator. We are not fortunate enough to have a benefactor like Yuri Milner who is blind betting on an entire system (yet), but then neither are the companies we will fund. We fall directly in line with what most other accelerators invest. Third and most important point: It's not really about the money. I think if you asked folks who had successfully started, built and exited from an early stage company, if they would give up between 6%-9% to be able to "accelerate their personal and business development; get expert legal advice; learn how to build decent financial models; learn how to build and manage a team; get their software built; get to work closely with and get exposed to hundreds of investors... they would say "absolutely" at least they would if they were smart. Plus, most accelerators bring in investors to help companies learn how to write a good investor pitch, build a strong case for their business and present themselves in a way that investors feel comfortable with. The they turn around and listen to the pitches from companies that they helped mold. The advantage of this model is too obvious to require elaboration. Eel was right when speaking of the REAL benefits. Unfortunately, we haven't done a very good job communicating who our "Captains" (mentors, advisors, investors and friends) are. There will be a more detailed list of mentors and investors on the site shortly, but I assure you that we have the chops and the connections to make the Project Skyway experience a a worthwhile endeavor for early stage tech companies. So, forget about the $6k. It is there to get you through three months; to pay your cell bill; buy groceries and keep you from having to supplement your income to a degree that you can't focus on your company, your customers, your products and your personal development. It is there to help you become the full-time, balls-out, "Go Big or Go Home" entrepreneur that you will have to be in order to be successful.

bugsy 16y ago
Regarding applying, I run my own business and I am sure I make more than all you guys combined. My comments are because this is posted on HN not on your web site and I have a right to comment. Maybe some kids will read my comments and realize how bizarre a $6000 offer is all things considered. Sure, I understand that you are claiming to provide all sorts of introductions to power players, politicians and the illuminati who your site implies are your close and personal friends. Presumably then like Facebook one can get laws passed requiring internet ID and position themselves to get a monopoly. Work the system and create a global police state rather than provide a solid product customers want and choose to use voluntarily because it is valuable to them. Not all creators want to go the route of leveraging politicians with bribes and back door deals to succeed. Some of us just want to make a solid product free from interference from so corrupted politicians working to squash entrepreneurs that don't cut them in for a share as if they are the mafia. Who are you guys again? How many successful businesses have you founded? Which politicians exactly are you related to and what are examples of your past successes influencing them in subversion of democracy? A lot of innuendo, very little specifics. It all sounds like a bunch of big talkers looking to grab a slide of ownership of a bunch of companies for peanuts when those companies don't need any such help to succeed. My opinion would be different if the offers weren't so tiny. $6000 is nothing. Typical software product should be selling $6000 worth in a day or at most a week or what is the point.
- deleted 16y ago
  [deleted]
  - bugsy 16y ago
    I love it when people dig through old unrelated comments to try and drag out things in a reputation attack. Gosh the next stage is surely the criminal background check so one can triumphantly proclaim: "Bugsy was cited for drug paraphenalia possession in 1983!" It shows how weak the party's position is to resort to such attacks. You should definitely spend a few days digging through all my comments. Feel free to drag out every thing I ever said and put it on parade in this thread in your counter attack. It's a great distraction from the points at hand and panders to the People magazine crowd much more effectively than than presenting a well thought response. It's fantastic, I love it. Good luck to you in your activities, parasitical and otherwise.