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In Pennsylvania, the "Y Combinator clones" AlphaLab and DreamIt Ventures are funded by the state of Pennsylvania (and a DreamIt partner is running for Congress!

by rms 17y ago

In Pennsylvania, the "Y Combinator clones" AlphaLab and DreamIt Ventures are funded by the state of Pennsylvania (and a DreamIt partner is running for Congress!). AlphaLab is an overt incubator run by a larger early stage investment group and DreamIt is more of a direct YC Clone. The goal of the money they are given is to create jobs. Their motivations get more complicated when the taxpayers are footing the bill. Probably the most common flaw in cloning Y Combinator is to make an incubator investing in micro seed magnitudes. Y Combinator is not an incubator; it's a micro seed stage fund. http://seedfunding.weebly.com/ http://seedfunding.weebly.com/

jedc 17y ago
I didn't realize AlphaLab and DreamIt are funded by the state. But as part of my project I hope to recognize the different types of funding sources & people that are starting YC clones. I've even heard about companies that are looking at running small programs like this. I agree that the motivations are complicated, and that's what I want to explore. Interesting note about the funding. I was talking to a VC about this and while he wanted to support a similar type of program locally, he was very hesitant. Mainly because if he chose not to follow-on with funding, he would likely be killing the startup before it even really got going.
- rms 17y ago
  > Mainly because if he chose not to follow-on with funding, he would likely be killing the startup before it even really got going. Good point. I'm pretty sure pg said someone similar on this site at some point.
  - jacquesm 17y ago
    That's true, but the chances of finding follow up funding are larger anyway if you already have a seed fund backing you. The one things most VC's are scared of is being first (and the other thing is having missed an opportunity). It's a fine line between those two...
- ig1 17y ago
  They address that last issue in this podcast (with the techstar founder): http://www.venturevoice.com/2009/01/david-cohen-techstars.html http://www.venturevoice.com/2009/01/david-cohen-techstars.ht...

by rms 17y ago

jedc 17y ago

I didn't realize AlphaLab and DreamIt are funded by the state. But as part of my project I hope to recognize the different types of funding sources & people that are starting YC clones. I've even heard about companies that are looking at running small programs like this. I agree that the motivations are complicated, and that's what I want to explore. Interesting note about the funding. I was talking to a VC about this and while he wanted to support a similar type of program locally, he was very hesitant. Mainly because if he chose not to follow-on with funding, he would likely be killing the startup before it even really got going.

rms 17y ago
> Mainly because if he chose not to follow-on with funding, he would likely be killing the startup before it even really got going. Good point. I'm pretty sure pg said someone similar on this site at some point.
- jacquesm 17y ago
  That's true, but the chances of finding follow up funding are larger anyway if you already have a seed fund backing you. The one things most VC's are scared of is being first (and the other thing is having missed an opportunity). It's a fine line between those two...
ig1 17y ago
They address that last issue in this podcast (with the techstar founder): http://www.venturevoice.com/2009/01/david-cohen-techstars.html http://www.venturevoice.com/2009/01/david-cohen-techstars.ht...