Mark Gritter (markgritter) wrote,
Mark Gritter
markgritter

Project Skyway

Minnesota's "first tech accelerator" has a FAQ up. They are interested in providing mentoring and connections to seed-stage startups, particularly mobile and SaaS. For this they want 6-9% of the company (in common stock); they also throw in $6K per founder which they characterize (accurately) as "living expenses."

Not sure what the typical Y Combinator deal is--- certainly the same order of magnitude (~$20K for 2-10% of the company, according to their web site?) dmorr was just talking about convertible notes, so I was somewhat amused to see this all-equity early stage deal.

There is certainly a lot of benefit to making connections through an incubator"accelerator". But, $200K valuation (for a 2-person company) is not all that much. Many entrepreneurs--- particularly those who already have a career and some savings--- could probably do more of the bootstrapping on their own, before finding an angel or VC for a better valuation. And a good angel will be doing some mentoring and connection-making too.
Tags: minnesota, startup
Subscribe
  • Post a new comment

    Error

    default userpic

    Your reply will be screened

    Your IP address will be recorded 

    When you submit the form an invisible reCAPTCHA check will be performed.
    You must follow the Privacy Policy and Google Terms of use.
  • 9 comments