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Five Early-Stage Alternatives to the Traditional Investment Model of Growing Startups July 12, 2009

Posted by hruf in Enterprise 2.0.
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For everyone, which ever planned to found or already in the phase of starting a new company there is an interesting article about alternative investment models:

The ways to grow a tech startup company are outnumbered only by the ways to skin a cat.

In between multiple rounds of venture capital from investment groups and skin-of-your-teeth bootstrapping, there exists an ecosystem of organizations designed to grow startups with a mixture of business acceleration, development assistance, small rounds of funding (usually just enough to keep Top Ramen on the table), and general advisement. Each organization has its own trademark way of doing things, and here are five that we find fascinating.

Y Combinator: From “Babies” to Businesses

… for attracting some of the youngest technical talent around and molding their inklings into viable companies through a three-month process that occurs twice a year.[…]

How They Invest: Y Combinator gives the startups a small amount of money (around $20,000 or less) in exchange for a 2-10 percent share in the company.

Startups They’ve Helped: Disqus, Posterous

TechStars: Mentors as Far as the Eye Can See

[…]The business acceleration summer program is best known for its huge, diverse, and truly impressive stable of experienced mentors, who run the range from entrepreneurial rockstars to financial geniuses.[…]

How They Invest: TechStars gives startups $6,000 per founder in exchange for roughly 6 percent equity in the company.

Startups They’ve Helped: SocialThing, BrightKite

Remarkable Wit: Venture Technologists

[…]This team invests development talent, consulting services, executive expertise, and operations and production labor to get startups up and running.[…]

How They Invest: Remarkable Wit invests time and labor – but no capital – in exchange for equity.

Startups They’ve Helped: Moontoast

SproutBox: More Money, Not Necessarily More Problems

The SproutBox team is taking four startups at a time and pumping around a quarter of a million dollars into each one over the course of ten months. In addition to all that mouth-watering lettuce, the ‘Box is also investing teams and resources.[…]

How They Invest: SproutBox gives funding and resources in exchange for equity.

Startups They’ve Helped: DecideAlready, CheddarGetter

LaunchBox Digital: Capital (And More!) in the Capital

[…]This firm, based in Washington, D.C., offers capital, advisement, and all-important access to investors and press for early-stage startups.[…]

How They Invest: LaunchBox offers startups up to $20,000 for 6 percent equity in the company.

Startups They’ve Helped: ShareMeme, Buzzable

Details could be found under the following side Five Early-Stage Alternatives to the Traditional Investment Model of Growing Startups – ReadWriteStart.

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