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The OP doesn't really say how startups get hurt. I didn't went through any incubator but I'm planning to. From my point of view there are definitely bad incuba

by alexro 14y ago

The OP doesn't really say how startups get hurt. I didn't went through any incubator but I'm planning to. From my point of view there are definitely bad incubators out there - the ones that get started by random people which the OP mentions - but these are no brainer: if you part with your equity for their pitch you don't deserve to be an entrepreneur anyway. There are also top-notch ones - YC the hottest one - these are no brainer too. And finally there are about a dozen of in-between. And that's where it stops being black-n-white. There might be some benefits in going through their programme, it just all unpredictable. You get different experience being in a different bunch, but still, I have no idea how it could "hurt" a startup if they get 3 month pay and advance their idea.

swombat 14y ago
A few ways: 1) The "pay" might slow down the founders' progress into a proper founder mindset, i.e. "we need to make revenues, dammit". In that way, it would hurt. 2) Many incubators I've encountered think they're adding value by imposing some kind of structure... requiring milestones, etc. For some startups, this may be suitable, but for others, it's completely wrong and will slow them down, discourage them, or even lead them in the wrong direction. 3) Good advice is worth its weight - bad advice can be the opposite. Get some convincing advice by someone who has no idea what they're talking about, and it could be very costly.
- alexro 14y ago
  Good points. Will be great to summ-up all possible drawbacks and make a comparison table for all interesting incubators. What are other bad factors worth considering? ADD: the biggest drawback I can think of is requiring to have a co-founder when sole founder would do just fine.
- ragincajun 14y ago
  Agree completely. It really all depends on the startup and the founders, but I wouldn't consider anything other than a top 10 incubator. For less than top 10 incubators, I think they could be great for inexperienced founders or someone looking for some help. Building connections are a big part of the incubator experience as well.
- nimblegorilla 14y ago
  Many incubators are also geared towards VC-style companies going for multi-million exits. That might not be a good fit for all founders. I went to MicroConf and it was really refreshing to get advice and encouragement toward building a sustainable small business.
- jasonhitchcock 14y ago
  RE: 1) this entirely depends on what your business model is. If you're validating your "insert SMB supporting SaaS here" in the market, you better believe I want to see you ring the cash register with your minimum viable product. If your building that "insert new cool social thing here", then go ahead and get your millions of users before you think about revenue. If you're referring to the "salary" of a founder as motivation, well, I don't see how having more money from that seed investment would hurt you more than not having it. RE: 2) incubators are hedge funds. they provide extremely loose structure to make sure their assets are serious. Show me a startup with no milestones and I'll show you a startup that isn't going anywhere any time soon. "we totally would have succeeded but we got bogged down in achieving goals and getting things done on time." RE: 3) If you're a founder and you don't seek advice, then you have no business being a founder. This particular point is agnostic of whether you're in a program or not. Sitting on top of a mountain and divining a business out of your own genius is not the most likely way to succeed. Talking to others and listening is. Best thing to do with bad advice is recognize its bad advice by talking to someone else about said advice. You will still receive bad advice, even if you aren't at an incubator btw. It's the founders job to scrutinize advice in the context of their vision/optimal business outcome.

by alexro 14y ago

swombat 14y ago

A few ways: 1) The "pay" might slow down the founders' progress into a proper founder mindset, i.e. "we need to make revenues, dammit". In that way, it would hurt. 2) Many incubators I've encountered think they're adding value by imposing some kind of structure... requiring milestones, etc. For some startups, this may be suitable, but for others, it's completely wrong and will slow them down, discourage them, or even lead them in the wrong direction. 3) Good advice is worth its weight - bad advice can be the opposite. Get some convincing advice by someone who has no idea what they're talking about, and it could be very costly.

alexro 14y ago
Good points. Will be great to summ-up all possible drawbacks and make a comparison table for all interesting incubators. What are other bad factors worth considering? ADD: the biggest drawback I can think of is requiring to have a co-founder when sole founder would do just fine.
ragincajun 14y ago
Agree completely. It really all depends on the startup and the founders, but I wouldn't consider anything other than a top 10 incubator. For less than top 10 incubators, I think they could be great for inexperienced founders or someone looking for some help. Building connections are a big part of the incubator experience as well.
nimblegorilla 14y ago
Many incubators are also geared towards VC-style companies going for multi-million exits. That might not be a good fit for all founders. I went to MicroConf and it was really refreshing to get advice and encouragement toward building a sustainable small business.
jasonhitchcock 14y ago
RE: 1) this entirely depends on what your business model is. If you're validating your "insert SMB supporting SaaS here" in the market, you better believe I want to see you ring the cash register with your minimum viable product. If your building that "insert new cool social thing here", then go ahead and get your millions of users before you think about revenue. If you're referring to the "salary" of a founder as motivation, well, I don't see how having more money from that seed investment would hurt you more than not having it. RE: 2) incubators are hedge funds. they provide extremely loose structure to make sure their assets are serious. Show me a startup with no milestones and I'll show you a startup that isn't going anywhere any time soon. "we totally would have succeeded but we got bogged down in achieving goals and getting things done on time." RE: 3) If you're a founder and you don't seek advice, then you have no business being a founder. This particular point is agnostic of whether you're in a program or not. Sitting on top of a mountain and divining a business out of your own genius is not the most likely way to succeed. Talking to others and listening is. Best thing to do with bad advice is recognize its bad advice by talking to someone else about said advice. You will still receive bad advice, even if you aren't at an incubator btw. It's the founders job to scrutinize advice in the context of their vision/optimal business outcome.