VC / Incubator

John
2 replies
I've read that some incubators want equity only for their training and guidance. Is offering an X% stake in your startup to an incubator, in exchange for their extensive experience, training, connections, and guidance, a beneficial decision? This entails no financial investment, solely leveraging their years of expertise working with various startups.

Replies

Vincent Lonij
No. There are many incubators that will offer the same plus significant financial investment in exchange for equity. (some government programs even offer grants that include advisors, with no equity). Another way to look at this: If you're exchanging equity for services, the is essentially the same as hiring an employee for equity only. can you get your equity back if they don't do their job?