3 ms·

What specifically is bad about them?

• rhizome 14y ago
  Pay to play.
  • friendstock 14y ago
    Not at all! If 500 Startups funds a company ($50,000) to join the accelerator, it will charge fees to help cover the costs of running the accelerator office space.
    • bennyg 14y ago
      Why don't they just give the company the net then? Free + $35k is better psychologically than "$50k but we'll be taking some back."
      • friendstock 14y ago
        I agree. (I think part of the reason is that some startups have more team members, which takes up more resources in the office.)
      • fredoliveira 14y ago
        It keeps the company in check. It reminds the company that expenses come with the business. It forces founders to be mindful of what they're getting. It makes everyone realize that they're being invested in as much as they're investing too. I don't care if psychologically $35k sounds better than $50k minus expenses to you. It makes for better founders and better companies. You should think about it from this perspective.
        • rhizome 14y ago
          It makes for better founders and better companies. Can you explain this part a little more?
      • adrianscott 14y ago
        They may be selecting for companies and teams that are more analytical, than looking for a 'psychologically better' deal.