Knowledge is the key-driver for innovation. Equity partners should be able to contribute to product development as a solid product or service is the basis for startups of any kind.

As partners can accelerate business in many ways, for instance by contributing to development or creating an integrated offer, partnerships can greatly improve the speed at which new products are adopted. Ideally, a new product/service should become part of an existing eco-system. Partners can offer that eco-system.

Customers fuel a business both by providing operating capital as well as early feedback gaining access to customers is a key part of any business. A mentor with equity in a startup provides social proof that a new venture is worth considering and thus can provide access to customers in the early stages of a new venture.

Providing capital is not in my top 3. I believe that startup businesses should not depend on capital as abundance of capital kills creativity. Bootstrapping a new venture is like a litmus test, both for the product and for the entrepreneur.

A good resource for information on bootstrapping is provided bij “eq journal”, prof. Bruce Firestone’s blog. (www.eqjournal.org).
Jeff Haden is another source of sound advice on how to run a (startup) company. Jeff Haden writes for Inc.com and businessinsider.com.

Simon

thank you for your comment on this. You are absolutely right. We are not aiming at high growth startups (which does not mean it couldnt happen).

Most participants come to us because they want to become financially independent and work from anywhere they want.

And you are also right, that incentives have to be aligned throughout the process. In this case, we have to become active operationally or our equity isnt worth a penny =). Also, we negotiate the final deal with each of the idea camp startups. What we dont want: Work and mentor for free, help to get a business up and running and then get dumped.

Thomas

The thing with young accelerator programmes is who knows if they’ll actually bring value? Saying & doing are very different things; sure everyone knows there’s risk involved with startups.. but..

Incentives need to be aligned through the whole process; there are ways of dealing with it; sure in different situations.. but..

I’ve been critical about accelerator programmes in the past but generally kept my opinions to myself bar the odd bar-rant because I don’t have a solid, better suggestion. However have followed a few accelerator programmes over the years; some closers than others.

My 2p? If this is aiming at ‘lifestyle businesses’ it has no places in the ‘high growth startups’ world we live in—participants expecting that will be in for a shock—missmatch.

While I’m sure you are committed to getting people out of dead end jobs and into entrepreneurship, I think at the very least you have your incentives lined up in a very unusual manner — and one that could potentially be hurting, rather than helping, those who come to you.

After the responses from both you and Kalle, I’m not sure this is merely an issue with the way the copy on your website is written.

1. We dont see ourselves in the same ‘niche’ as ycombinator and hackforward although we greatly admire their programs.
- Our main goal is to help first time entrepreneurs to set up a business that will allow them to finance their ideal lifestyle (4-hour work week style).
- Thus, we aim towards scalable but automated lifestyle (cash flow) businesses.

Maybe this did not become entirely clear through our new website. We are working on it.

2. We only take equity if and only if the work shop participants want our help with the ideas they developed in the workshop. If they want to do it themselves, they are free to build their own business without Idea Camp mentorship. Only if we become active as mentors do we ask for a (negotiable) share. So participation in the workshop is not necessarily linked to giving up part of your company for mentorship and operational support.

We hope that clears up some of the doubts about our project. Glad to answer questions regarding our mad and exploitative 20 percent. =)

T