Comments on: TechStars Launches

By: Cheap_Condoms

Cheap_Condoms — Fri, 25 Sep 2009 16:00:15 +0000

Of course, if your company is worth tens of millions of dollars today, then 5% is not an attractive deal. It's tough to put a price on the connections and mentorship provided, but it's clearly worth much more than the seed capital and can have a profound impact on the company.

By: Cheap Condoms

Cheap Condoms — Wed, 23 Sep 2009 19:42:32 +0000

One thing to keep in mind about TechStars is the terms of the equity obtained. It's not dilution protected nor does it contain any onerous special rights. If the company goes on to raise a million dollars, the initial equity will be very minimal indeed.

By: cheap condoms

cheap condoms — Sun, 20 Sep 2009 14:09:11 +0000

I feel that Interactive producers or Project Managers (pick your own label) can keep projects and companies on a sustainable track. If the company goes on to raise a million dollars, the initial equity will be very minimal indeed.

By: cheap condoms

cheap condoms — Sun, 20 Sep 2009 13:50:58 +0000

this is really interesting and it really helps in development

By: Brad Feld

Brad Feld — Fri, 19 Jan 2007 21:43:24 +0000

Anil - I don't think you are reading the FAQ correctly. At http://www.techstars.org/site/page/pg5884.html it clearly states that you'll get $5k per founder up to a total of $15k if you have three founders. The equity that TechStars gets is 5% regardless of whether the team has 1, 2, or 3 founders.

By: Anil

Anil — Fri, 19 Jan 2007 15:47:25 +0000

Read the techstars FAQ carefully. $5K TOTAL in exchange for 5% equity.

By: David Cohen

David Cohen — Fri, 19 Jan 2007 05:14:11 +0000

Funding is up to 15k, not necessarily just 5k. It depends on the number of founders in the company (companies with just one founder are much less likely to succeed than companies with multiple founders). As you point out, it’s not much money. But too much money too early (particularly at too high a price to the entrepreneur) is potentially dangerous. TechStars injects just enough capital to get a proof of concept prototype done.

The big value provided by TechStars is the mentoring and connections, as well as an organized method of getting access to future capital.

One thing to keep in mind about TechStars is the terms of the equity obtained. It’s not dilution protected nor does it contain any onerous special rights. If the company goes on to raise a million dollars, the initial equity will be very minimal indeed.

Of course, if your company is worth tens of millions of dollars today, then 5% is not an attractive deal. It’s tough to put a price on the connections and mentorship provided, but it’s clearly worth much more than the seed capital and can have a profound impact on the company.

By: Anil

Anil — Thu, 18 Jan 2007 22:11:25 +0000

Sounds too BAD to be true…
$5K for 3 months, in exchange for 5% equity!
To relocate to Boulder for 3 months, without any boarding/lodging.
Are you serious?

By: Derald

Derald — Wed, 17 Jan 2007 21:19:52 +0000

Great idea indeed. One thing that this does is break down the business creation process into “micro segments”. Here you have a micro timeframe of 3 months or so for a company to really figure out the early, difficult things that are important in preparation for the next segment (significant seed funding, 1st round, or shelf the idea altogether).
This also appears to be a segment where the company has the greatest chance of setting itself up for success with all the great experience/human capital involved.

By: Ronald Lewis

Ronald Lewis — Wed, 17 Jan 2007 18:14:40 +0000

Interesting and promising development. I wonder how this could help people involved in social media as content producers and/or entrepreneurs?

By: jeff barson

jeff barson — Wed, 17 Jan 2007 18:12:48 +0000

Utah (that silly state next door) has taken a shot at this as well. Junto Partners (http://www.juntopartners.com) started in 2004.

I’m friends with a number of entreprenerus who when through the Junto Program. They uniformly describe it as a great experience. There have been a number of companies that have come out of the program with some success, http://www.hirevue.com being the most visible.

The differing factor is the equity stake and preferences that Junto has… I think that TechStars may be a better way to go for successful companies.

Absolutly happy to see these types of programs though. It makes me want to leave Park City for the summer and drive East.

By: Angela

Angela — Wed, 17 Jan 2007 13:45:10 +0000

What about including Producers/Project Managers? I’ve worked for several tech companies. My gift lies in getting things done and I feel that Interactive producers or Project Managers (pick your own label) can keep projects and companies on a sustainable track. The old on time on budget cliche: does it still hold true for you?

By: Zaid

Zaid — Wed, 17 Jan 2007 07:42:55 +0000

Sounds awesome! I’ve been launching little ventures for several years and unless you’re destined with a lot of luck, things mostly don’t turn out as sexy as young entrepreneurship is often portrayed. That is where I think you folks can *seriously* help entrepreneurs.

Key for entrepreneurs I guess would be understanding that $$$ is the least of what is being offered. And honestly, I would skip the $$$ if I had to to get access to some of the contacts and resources.

-Zaid