No confusion here. Quite the opposite. I simply warn inexperienced–yet talented–kids (that’s what they are) from getting into bed with people who ask for more than what they give in return.

Hardly a straw man argument.

First: the fact that you and others created successful companies means very little to the startups you court. Unless YOU are the guy on the other end of a deal that will result in revenue for said startup, your connections mean very, very little.

How do I know this? I’ve seen it after the fact. Typically, when the startup attempts to litigate its way out of a very bad deal.

Mentoring is tech babble. It seems to take on several meanings–depending on the carnival barker using it. In this case, you refer to mentoring as possible “legal advice.”

Really? Because that type of legal advice is something I would advise AGAINST given that the mentor and the startup have different agendas.

Now, does the startup kid know this? No. Is he protected from this sort of mentoring that might result in signing away the company, or placing more people on his “advisory board” from the friendly mentor’s firm, or his VC pal sitting in the back of the room?

Probably not.

As for Burn rates, if you’re employing more than 3 people, have an office, marketing budget, and outsource your coding, you are getting up there pretty darn quick. That, once again, I’ve seen firsthand.

Bottom line: you people offer too little and ask for too much. Your claims of “successful startups” are questionable at best. Your legal advice is an inherited conflict of interest against the startup owner, and at the end of the day, you’re the Playa with 20 other girls in 20 other ports, while the poor startup CEO kid thought you loved only him.

BTW: I’ve seen you speak. Not impressed.

http://www.read..._incubators.php

I was talking to a founder of a Techstars company who, before being selected for Techstars, had raised F&F money, and he said the valuation wasn’t an issue– his investors were comfortable with the value of the intangibles and gave the go-ahead.

Elliott and Tom, you guys have a great straw man going. If you bother to read the website you’ll discover you’ve got your facts wrong.

“There’s no value in introductions.” Agreed! You’ll notice that “getting introductions” is not a benefit listed anywhere on the CF website.

The benefit of mentors is NOT in “introductions,” but in helping you focus on what’s important, helping you ask the right questions, coming up with great marketing and positioning, getting beta testers in the door, and even things like accounting and legal work.

“2-4 investors cannot advise 50-70 companies.” Agreed! That’s why we have 20 mentors for 3 companies.

“Burn rates for three people is $25k/month.” I suppose you haven’t bootstrapped a company before, because that’s crazy-high. You must be thinking of big-VC-style companies.

All 20 of the mentors have created successful companies on more like $500-$1000/month. If you can’t understand how that can be, I can see why you’re confused.

“You get a party, some beer, and stories about how they all funded Google.” Actually none of us are VCs. We all created successful companies from scratch. Agreed that stories are bullshit, but if you bothered to attend one of our meet-and-greets you would discover that all did was talk to prospective folks about THEIR ideas, and even helped them with useful questions right there on the spot.

Sorry guys, the persona you’ve invented just isn’t true.

Do the math. Will $25,000 (I’m being generous here) get you to the point where your product is up and running in two months?

Because that’s all the time this petty cash is going to give a small startup. Burn rates for startup companies with little overhead and 3 people can be $25,000 a month.

So you get a wine and cheese party, some beer and a lot of hot air from “mentors” telling you how they all funded Google.

Total bullshit. Don’t fall for it. You will hear more about their own experiences, but will get little advice.

Chickenhawk VCs: If you can’t figure out who the sucker in the room is…
…You’re the sucker.

For all you anonymous commenters, it would be more helpful to hear about experiences you had that didn’t work (and why) rather than a blanket condemnation. When programs like TechStars are getting hundreds of applications, and 70% are making it to the next level — something is being done right.

The implication is you can’t meet business leaders/directors of business development w/out these guys Repping you.

Simply untrue.

If it were, we would all be screwed.

That is what they WANT you to believe, as they take 10% of your company. It’s a freaking hand job of a deal.

ChickenHawk VCs: You will never get laid, but you will ALWAYS get f@@&*d!

If you have questions about the program, the best way to get answers is to post your question to our forum on GetSatisfaction at http://getsatis.../capitalfactory

You can also ask us questions directly on Twitter @CapitalFactory

Finally, we’re having a meetup at Conjunctured in Austin on Tuesday at 5pm if you want to meet with some of the mentors in person.
http://www.face...2656&ref=ts

I look forward to hearing from you!

Stay away, kiddies, and raise the money through friends and family. Better yet, develop a product that generates interest–and revenue–on its own.

That way, you don’t have to accept $5,000 in exchange for 10% ownership and bullshit mentoring.

“Mentoring” is, without question, the idiot Up with People Verbage.

Kiddies: Know the difference between the price of everything and the value of nothing.

Chickenhawk VCs, are lazy and offer nothing.
TC and Limbaugh fat faced Arrington are buddies with these guys. Not you pimply faced startup geeks.

STAY AWAY.

Seed money, coding assistance, and introductions don’t mean anything. They aren’t a prerequisite to success and in my opinion, are equal to PayDay loans because they take more than they give.

There is no introduction these guys can give you that you can’t find on your own–if your product has value and can generate revenue.

There is no magic trick ChickenHawk VCs offer except the trick where they become owners of your company in exchange for petty cash.

“Mentoring” is the dumb tech word of the year, as though it equals anything of value. Occasionally, it is somewhat helpful. For the most part–as anyone with prior VC experience will confess–it isn’t.

Certainly, not for the small some the kid receives in exchange for the ownership position.

There is a REASON these fool deals are offered to kids.

Because adults would laugh these clowns out of town.

TC isn’t looking out for you kids. Hell, Arrington can’t stand to even look at you. His friends are the sleepy rich guys like Predator Graham and Ski Sweater McAdoo and the Sonsini Kid.

Stay Away, kiddies. And do it yourselves.

Since moving to Austin 2 years ago Josh has been a huge help to me getting settled in, and he is one of the linchpins of the entrepreneurial community here.

You know, sometimes even the nicest people forget your name. Your assumption that it was some kind of deliberate personal insult suggests that perhaps you are the one with the personality defect, not Josh.

What is the best way to contact to you or one of your colleagues at Capital Factory?

Best Regards,
Ruth Gonzalez
Plug & Play Tech Center
Ruth@plugandplaytechcenter.com

I am a Business Relationship Associate with Plug & Play Tech Center in Silicon Valley. We provide similar solutions to startups as well. I was not able to find an email address or telephone number for Capital Factory. What is the best way to contact you?

Sincerely,
Ruth

Maybe he was having a bad day?
http://en.wikip...tribution_error

5% to tap into their networks?

5% to get that much needed press / buzz /hype going?

5% for a 1st time founder to be in a setting with other like minded individuals and get off to the right start?

Sounds like a steal to me. I would be willing to give up more than that to get into one of these programs. To be able to build a company in this setting and have VCs at the end of summer ready to listen to your pitch, who someone like me in Ohio, would have a hard time getting access to. Man, that is invaluable, and worth so much more than taking 20k and handing out 5% to someone. I’m there in a second if CF will have me.

This model makes a lot of sense for some startups, but not for everyone. Everyone needs to decide for themselves.

Here is the list of no-bodies
http://www.capi...om/mentors.html