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I think the reason tech startups (and web-tech startups in particular) work great with the incubator/YCombinator model is that $10,000 and 3 months gets you som
by ZachPruckowski 17y ago
I think the reason tech startups (and web-tech startups in particular) work great with the incubator/YCombinator model is that $10,000 and 3 months gets you somewhere in terms of a beta or an alpha, or a design or something that can get you Angel Investors or SeriesA VCs. Many non-techie businesses don't really have that "alpha" stage until there's a lot more money involved, making 3 months and $10,000 a poor trade for equity from the founder's perspective.
Additionally, tech startups tend to have a serious valuation ramp-up and multiple investment rounds that many other industries don't. So getting in on the ground floor with $10,000 is a worthwhile investment. For a YC-like program to be successful, it has to be in a field with a similar structure.