Geek News and Musings

Capital Factory Gives Austin Its Own Startup Incubator

While many people in the tech world only make the trek to Austin, Texas once a year for SXSW, the city has a fairly sizable startup community. Now Austin is getting its own Y Combinator-esque program, dubbed Capital Factory.

As with other similar programs, Capital Factory offers entrepreneurs a modest amount of funding in exchange for equity (the program is offering ‘up to $20,000′ in exchange for 5% of each startup). Capital Factory is also advertising ‘$20,000 in free stuff‘, which includes server usage, PR support, and legal help. But the real value from these programs comes from their associated mentors, who work with the startups to help them get on their feet, and help tap into their established networks of VCs and other entrepreneurs.

The ten week long program culminates in a ‘Demo Day’ during which each startup will pitch their wares to VCs, press, and other entrepreneurs.

Capital Factory joins a growing number of programs vying for the attention of eager new entrepreneurs. Aside from Y Combinator, which pioneered the idea, other incubators include TechStars (Boulder and now Boston), Start@Spark (Boston), LaunchBox Digital (Washington, D.C.), DreamIT Ventures (Philadelphia), and Shotput Ventures (Atlanta)

Most of these are regional, but they still draw from the same pool of entrepreneurs (many of whom are willing to relocate temporarily if they get accepted to their preferred program). Recently we’ve heard of some shady tactics like exploding term sheets that are being employed as these programs compete for the same candidates.

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Capital Factory Gives Austin Its Own Startup Incubator

While many people in the tech world only make the trek to Austin, Texas once a year for SXSW, the city has a fairly sizable startup community. Now Austin is getting its own Y Combinator-esque program, dubbed Capital Factory.

As with other similar programs, Capital Factory offers entrepreneurs a modest amount of funding in exchange for equity (the program is offering ‘up to $20,000′ in exchange for 5% of each startup). Capital Factory is also advertising ‘$20,000 in free stuff‘, which includes server usage, PR support, and legal help. But the real value from these programs comes from their associated mentors, who work with the startups to help them get on their feet, and help tap into their established networks of VCs and other entrepreneurs.

The ten week long program culminates in a ‘Demo Day’ during which each startup will pitch their wares to VCs, press, and other entrepreneurs.

Capital Factory joins a growing number of programs vying for the attention of eager new entrepreneurs. Aside from Y Combinator, which pioneered the idea, other incubators include TechStars (Boulder and now Boston), Start@Spark (Boston), LaunchBox Digital (Washington, D.C.), DreamIT Ventures (Philadelphia), and Shotput Ventures (Atlanta)

Most of these are regional, but they still draw from the same pool of entrepreneurs (many of whom are willing to relocate temporarily if they get accepted to their preferred program). Recently we’ve heard of some shady tactics like exploding term sheets that are being employed as these programs compete for the same candidates.

Crunch Network: CrunchGear drool over the sexiest new gadgets and hardware.

Capital Factory Gives Austin Its Own Startup Incubator

While many people in the tech world only make the trek to Austin, Texas once a year for SXSW, the city has a fairly sizable startup community. Now Austin is getting its own Y Combinator-esque program, dubbed Capital Factory.

As with other similar programs, Capital Factory offers entrepreneurs a modest amount of funding in exchange for equity (the program is offering ‘up to $20,000′ in exchange for 5% of each startup). Capital Factory is also advertising ‘$20,000 in free stuff‘, which includes server usage, PR support, and legal help. But the real value from these programs comes from their associated mentors, who work with the startups to help them get on their feet, and help tap into their established networks of VCs and other entrepreneurs.

The ten week long program culminates in a ‘Demo Day’ during which each startup will pitch their wares to VCs, press, and other entrepreneurs.

Capital Factory joins a growing number of programs vying for the attention of eager new entrepreneurs. Aside from Y Combinator, which pioneered the idea, other incubators include TechStars (Boulder and now Boston), Start@Spark (Boston), LaunchBox Digital (Washington, D.C.), DreamIT Ventures (Philadelphia), and Shotput Ventures (Atlanta)

Most of these are regional, but they still draw from the same pool of entrepreneurs (many of whom are willing to relocate temporarily if they get accepted to their preferred program). Recently we’ve heard of some shady tactics like exploding term sheets that are being employed as these programs compete for the same candidates.

Crunch Network: CrunchGear drool over the sexiest new gadgets and hardware.

Capital Factory Gives Austin Its Own Startup Incubator

While many people in the tech world only make the trek to Austin, Texas once a year for SXSW, the city has a fairly sizable startup community. Now Austin is getting its own Y Combinator-esque program, dubbed Capital Factory.

As with other similar programs, Capital Factory offers entrepreneurs a modest amount of funding in exchange for equity (the program is offering ‘up to $20,000′ in exchange for 5% of each startup). Capital Factory is also advertising ‘$20,000 in free stuff‘, which includes server usage, PR support, and legal help. But the real value from these programs comes from their associated mentors, who work with the startups to help them get on their feet, and help tap into their established networks of VCs and other entrepreneurs.

The ten week long program culminates in a ‘Demo Day’ during which each startup will pitch their wares to VCs, press, and other entrepreneurs.

Capital Factory joins a growing number of programs vying for the attention of eager new entrepreneurs. Aside from Y Combinator, which pioneered the idea, other incubators include TechStars (Boulder and now Boston), Start@Spark (Boston), LaunchBox Digital (Washington, D.C.), DreamIT Ventures (Philadelphia), and Shotput Ventures (Atlanta)

Most of these are regional, but they still draw from the same pool of entrepreneurs (many of whom are willing to relocate temporarily if they get accepted to their preferred program). Recently we’ve heard of some shady tactics like exploding term sheets that are being employed as these programs compete for the same candidates.

Crunch Network: CrunchGear drool over the sexiest new gadgets and hardware.

Capital Factory Gives Austin Its Own Startup Incubator

While many people in the tech world only make the trek to Austin, Texas once a year for SXSW, the city has a fairly sizable startup community. Now Austin is getting its own Y Combinator-esque program, dubbed Capital Factory.

As with other similar programs, Capital Factory offers entrepreneurs a modest amount of funding in exchange for equity (the program is offering ‘up to $20,000′ in exchange for 5% of each startup). Capital Factory is also advertising ‘$20,000 in free stuff‘, which includes server usage, PR support, and legal help. But the real value from these programs comes from their associated mentors, who work with the startups to help them get on their feet, and help tap into their established networks of VCs and other entrepreneurs.

The ten week long program culminates in a ‘Demo Day’ during which each startup will pitch their wares to VCs, press, and other entrepreneurs.

Capital Factory joins a growing number of programs vying for the attention of eager new entrepreneurs. Aside from Y Combinator, which pioneered the idea, other incubators include TechStars (Boulder and now Boston), Start@Spark (Boston), LaunchBox Digital (Washington, D.C.), DreamIT Ventures (Philadelphia), and Shotput Ventures (Atlanta)

Most of these are regional, but they still draw from the same pool of entrepreneurs (many of whom are willing to relocate temporarily if they get accepted to their preferred program). Recently we’ve heard of some shady tactics like exploding term sheets that are being employed as these programs compete for the same candidates.

Crunch Network: CrunchGear drool over the sexiest new gadgets and hardware.

Atlanta Gets Its Own Y Combinator In Shotput Ventures

Silicon Valley has Y Combinator. Boulder, Colorado (and now Boston) has TechStars. Boston also as of today has Start@Spark. Washington, D.C. has LaunchBox Digital. Philadelphia has DreamIT Ventures. And now Atlanta is joining the seed incubator movement with Shotput Ventures.

Started by a group of Atlanta tech entrepreneurs who want to attract and keep startup talent in the Southeast, Shotput Ventures is accepting applications from young, first-time founders for its summer program. The deadline is April 10.

Mitch Free, the founder of industrial marketplace MFG.com, is one of the backers. He explains in an email:

We are looking for “capital light” web startups. We think there is so much open source software, web services and cheap cloud computing capacity (like Amazon S3) that web business can be prototyped and launched very inexpensively.

Ideally we are looking for a small team of co-founders, most likely still in college. We will pick 8 to 10 teams and give them $25k each so they don’t have to get summer jobs and can work on the product full time. We (all seasoned entrepreneurs) will mentor them through the summer. We will take a 5% to 10% equity stake. At the end of the summer we will pick some to further fund and/or help raise capital and some we will probably kill.

There has been nothing like this in the Southeast. We have lots of great breeding grounds such as Georgia Tech but the people with the next big idea have had to reach out to the Northeast or West Coast to find seed capital and support. Our goal is to create an eco-system in the Southeast to encourage and support web startups. And once they are up and running we don’t want them having to relocate to Boston or San Jose

The first summer round is funded with $300,000. Who needs a summer job, when you can create a startup instead?

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