Crain’s New York Business
March 9, 2014
Tech accelerators grab for equity
Entrepreneurs embrace the havens for startups, but is the cost too high?
The two years Riggs Kubiak spent at NYU-Polytechnic's clean-tech incubator, the Accelerator for a Clean and Renewable Economy, helped him develop a formal business plan and get comfortable talking to investors. So comfortable, in fact, that he raised $5 million in venture capital the following summer, in 2012.
But while he was at ACRE, the CEO of Manhattan-based Honest Buildings took a pass when several accelerators encouraged him to apply to programs where he'd have to trade equity for cash.
"I didn't want to do it because you know that if you raise venture capital, you're going to wind up giving up a lot of equity anyway for a lot more capital," he said. His company, an online network, connects landlords and developers with building professionals such as architects. "For me, it's a nonstarter." Read more.
Steve Gilman '15
“To organize a robust community, sometimes you have to put walls around it,” says Steve Gilman ‘15 about his company, Block Party Suites.