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by outside1234 5165 days ago
am i understanding the contract correctly that they want 3% for a $5000 investment?
1 comments

That looks right. I mean, it's not too far off from YC's 6% for ~12k, but I'm curious as to whether the rights they spell out affect that in any way, particularly with dilution.
If you look at YC's FAQ page it says $17K for a single founder. For 3%, $5k total seems low to me. For two founders that would be $2.5k each.
I must be remembering old data (or have just had it wrong). Thanks for the correction.

Regardless, generally speaking, the money isn't the thing that drives deals like this, it's the mentorship and exposure. In this case though, it sort of seems like a "Here's $5,000, come back with something useful, and we'll think about talking to you" sort of scenario, so I can't help but wonder about its usefulness.

I mean, it might work, and if it does, could be great for the area, but it doesn't appear to be modeled after any of the most successful incubators.