Technology start-up companies lack almost everything but an idea. Money is short, office and lab space is a luxury, and accounting is an activity thought about at tax time. But for entrepreneurs willing to offer up a slice of their company equity, there is a trade-off available.
Within research parks, there exists a breed of investors who focus on science and technology start-up companies. Akin to angel investors, these are small-scale venture capitalists whose short-term programs have pros and cons.
Pros:
- Free rent
- Free accounting
- Free access to legal counselling
- Free access to industry mentors
- Access to a line-of-credit
Cons:
- Up to a 50% equity stake in the start-up company
The itemized pros outnumber the cons – or do they? Is your start-up housed in one of these accelerators? Why were you and your partners willing to trade an interest in your company? Was it rent, mentoring services or something else?
I’m interested in how you made that decision and what your experience has been. Leave a comment or send me an email at info@discoveryparks.com
