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Using a Startup/Tech Accelerator to Launch into the Fastlane

AllenCrawley

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I've been doing some research on finding a local coworking space and came across a startup tech accelerator. It's not a coworking space but I found it interesting because 1) I didn't know they existed and 2) I didn't think Indianapolis would have something like this. I'd suspect these are common place on the west coast.

What is a tech accelerator? From their website:

"Are you looking for a technical co-founder?"

We help you build a better product.
We love ideas as much as the technology behind them and thrive on helping first-time visionaries, serial entrepreneurs, or business leaders launch a product into a market.

Bring Your Idea to Life
We understand the challenges of an early-stage venture. We know how to turn those risks into benefits. And we've got what it takes to get your product to the market faster, and on a stronger technology foundation.

What We Do For You
Whether your idea is web-based or a consumer product, we enable you to do it all.

http://www.developertown.com/

Here's a pic of the inside of Developer Town:
DeveloperTown-Arial.jpeg

Has anyone worked with a startup accelerator? Is this something you would suggest?

I'm not sure how they work out getting paid for their work, if it's an equity position and/or fee based but it looks like a great way to move projects forward that one may have been hesitant pursuing due to not having the technological know how.
 
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yahdmon

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Now this is freaky scary -- this is the exact direction I am gearing up to go.

Here is my story... nearly four years ago I went through a business startup course that is offered by the local accelerator. After completion, they liked my idea and wanted to talk with me. I setup appointment and they laid out the details.

I would need to maintain a presence at their facility, paying 50 bucks a month for post box space and they would work with me to develop my idea and get me pitched or atleast be able to get some money.

I said screw you -- I do not have 2 grand right now and I walked away and today I am gearing up to do a 180.

Today I meet with one of the teachers of that course and I am doing a 180 turn... laying out what I have now completed now and what I have pending for the next launch and hoping he can help me get fueled up so I can go full speed ahead.

To answer your question, I know they want about a 30+ percent stake in your company at first outset if you take their help and finances and after they recoup their funds, they try to maintain 5 or 10 percent stake in your entity.

This is how this one makes ends meet.

I would suggest it if you are able to meet with them once a month which is one of the requirements. At the minimum, GO get more information and do not do what I did as a hot head and arrogant new entrepreneur back then.

Today I know better -- I turn every stone, stop and think then turn it again before making final decision
 

AllenCrawley

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Thanks for the feedback.

I said screw you -- I do not have 2 grand right now and I walked away...

I know they want about a 30+ percent stake in your company at first outset if you take their help and finances and after they recoup their funds, they try to maintain 5 or 10 percent stake in your entity.

So, they wanted 30% stake, $50 a month and $2000 up front?
 

yahdmon

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No Alan... their was no upfront monies. Home - Kauffman FastTrac are the sponsors of the program in Detroit. The monthly payment went towards that $2000.00 total. Mind you -- this was more than three years ago.

I do not know what they do now...
 
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AllenCrawley

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their was no upfront monies. Home - Kauffman FastTrac are the sponsors of the program in Detroit. The monthly payment went towards that $2000.00 total.

Thanks for the clarification.
 

100k

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Sounds interesting!

I would love to have some help setting up my fast lane business - but I am in UK! I wonder if there is a UK equivalent ?
 

Nomangee

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I'm not from UK, but I know they are several Startup/Tech Accelerators. Few month ago I saw an article from a whole new industrial area only for Startups in the UK. I think they are called business parks.
 
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AllenCrawley

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Eos

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