Ask YC: YC clones
It didn't float the previous time. So here is a question. What do people think of YC clones, Betaspring.com in particular. Does it look like something worthwhile or a rip-off -- ~1% equity for no investment, with mentoring and some legal advise, access to online incorporation documents? It obviously doesn't have the highly successful entrepreneurs YC has. There seem to be a lot of hand-holding firms for startups. Are they really necessary or a created necessity?
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My only question: why would Betaspring NOT offer funding? If the founders have done such a great job raising money in the past (30 million, was it?), why not raise some more money now, and invest 20 grand in each of the young startups that they accept into the program? It's such a small amount of money, but when you ask a bunch of 20-somethings to move to RI for the summer (and give up equity), you should at least give them enough money to pay rent.
Betaspring offers to "line up investors who want to fund you" -- really? In this environment, that is a pretty ambitious claim. How many YC companies get the "immediate follow-on funding," that Betaspring refers to? Some...but we are talking Silicon Valley (and formerly Boston, the second largest entrepreneurial hub), and a really strong reputation.
I think these firms are generally a good idea, and a value add for young entrepreneurs. Look at the companies that have come out of YC, and see what they are saying about their experiences. I just think some firms are better than others...
Betaspring offers to "line up investors who want to fund you" -- really? In this environment, that is a pretty ambitious claim. How many YC companies get the "immediate follow-on funding," that Betaspring refers to? Some...but we are talking Silicon Valley (and formerly Boston, the second largest entrepreneurial hub), and a really strong reputation.
I think these firms are generally a good idea, and a value add for young entrepreneurs. Look at the companies that have come out of YC, and see what they are saying about their experiences. I just think some firms are better than others...
I'm the Program Director for Betaspring. We will be offering funding in our next round. We've soft-launched this summer with a few local teams to prove the model will work here in Providence.
Our hope is that we'll attract smart, talented people to the city to help support the burgeoning technology/design scene that we currently have.
Our hope is that we'll attract smart, talented people to the city to help support the burgeoning technology/design scene that we currently have.