Recently I wrote a blog post on things to think about when starting a startup accelerator. I pointed out that most accelerator programs take between 5-12% or thereabouts for a fairly standard amount of money and time. Year One Labs is a bit different (more money and more time = more equity taken); our belief being that early stage startups need more time to bake. But even Year One Labs only takes 20%, and we only invested in 5 companies, and we don’t follow-on, so we get diluted just like founders do as they take on more financing.
In thinking about alternative models for startup acceleration or incubation, I can’t help but ask the question, “What if the incubator owned 80% instead of 20% and the people working on the startup owned 20% instead of 80%? How could that work? And does it make sense?”
To read the full, original article click on this link: An Alternative Model for Startup Incubation
Author: Ben Yoskovitz
