LaunchBox Digital a startup incubator similar to Y Combinator that offers founders small amounts of seed funding and a mentorship program in exchange for equity stakes of around 4-8%, is now accepting applications for its class of 2009. The incubator will accept up to ten startups, who will be invited to a 12-week program in Washington D.C. where they’ll receive advice from a number of industry veterans. The program will culminate in demo events on both the East and West Coasts. Applications are due by March 16th.
The incubator’s first class has done fairly well (you can see an overview of each here), with six of the nine startups receiving funding following completion of the program (the combined amount raised was around $6 million). Among those to raise funding were Koofers, an online repository for old exams, Mpowerplayer, an online catalog of mobile games, and MyGameMug, a social network for gamers. Also check out JamLegend, a web-based game similar to Guitar Hero.
Other similar incubator programs include TechStars, DreamIt Ventures, and Y Combinator, which pioneered the model. It’s great that all of these programs are still open for business in the current economic climate, but I suspect that the success rates for post-program funding will be much lower than they have been for earlier sessions.
There is also Capital Factory for startups in Austin, TX.
capitalfactory.com
Will the incubator become the de facto VC investment model? A way of sort of ‘trying’ out ideas and teams before fully backing something?
A way of sort of ‘trying’ out ideas and teams before fully backing something?
http://kisalt.net/eq
Alex- No, so long as the following holds true:
1) It’s possible for independent people to develop a Web site on their own that garners a following and 2) there’s competition in the VC market.
Launchbox – you have some CSS design issues with your site (FF3). Set the #container CSS width to 740px.
So, between all these “incubators” whether it be Ycombinator, Techstars, Seedcamp etc which one is a company more likely to choose, because right now I just don’t see Launchbox having the same experience within their team as Ycombinator or Techstars do.
I think the top programs (y combinator, techstarts, launchbox, etc.) all can essentially do the job. The most important factor is less the program selected than the quality of your idea and our team. Given options, I think I would choose a program close to where I live (at least make that east vs. west coast call).
With techstars moving to san fran, and y combinator shutting down their boston program, I am happy there is still a good east coast option for people.
I hope these programs all survive the economic stress of the next few years. We need to grow our way out of our current problems!
There are also the similar programs run by universities – like the Yale Entrepreneurial Institute (www.yale.edu/yei) which provide assistance and a grant (to offset living expenses) to startup teams. YEI companies Stickk and GoCrossCampus have been featured on TechCrunch – and additional companies such as PaperG have received funding…
The program is supported by Yale directly and takes no equity from the companies. Because many of these companies can be started with such a small amount of capital, university support of student or graduate founded ventures can be a great way to jumpstart the local economy – something Yale has seen firsthand through the hundreds of jobs Higher One has created in New Haven. During a downturn, many talented students my not be able to find jobs – so why not rather go create your own
“small amounts of seed funding and a mentorship program in exchange for equity stakes of around 4-8%,”
“small amounts” as in how much exactly?
All these programs are great, in my opinion. Nice to see them available as an option for a founder to consider.
LaunchBox 08 is undoubtedly the SINGLE, fundamental reason that we were able to transform an idea into a complete, functioning business (in less than 4 months).
The LaunchBox program successfully combines “letting you do your own thing” with just enough “advice” (read – pushing you to meet milestones and prepare for deadlines) to have teams emerge from the program ready to expand and/or obtain funding.
When considering an incubator, university program, or even the choice of financial backers, you must, above ALL ELSE, consider whether your choice will significantly increase the probability of your business’ success. Seed funding and equity stakes aside, LaunchBox is THE reason we’re working full time for Koofers, Inc., and that’s really all that matters.
This is our second year working with the Launchbox Digital crew, and we’re excited to help support the program again! http://www.vige...t-ups-take-two/
We learned a lot from the advisors, and LaunchBox Digital will probably become the East Coast incubator for web startups. It’s all about a combination of money, connections, and advice from these incubators that makes them infinitely valuable for those selected. It really helped at ShareMeme.
Thanks for the actual participant comments – more appreciated as I noodle on my own options! Just finishing up school, and think this is a great low risk way of testing the startup waters without feeling like I am all alone.
I’m a guy who has spent my own dollars to develop my site and paid my patent attorney to get my idea patented. So my question is, where do these programs fit with my situation? Do i need them to go to the next step, meaning to grow, please help..its kinda new to me…I would like to have a national presence but I need help to grow..