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am i understanding the contract correctly that they want 3% for a $5000 investment?
That looks right. I mean, it's not too far off from YC's 6% for ~12k, but I'm curious as to whether the rights they spell out affect that in any way, particularly with dilution.
Earlier quoted context omitted.
cultural insight: west michigan is what west michiganders call themselves to distance themselves from Detroit.
To be fair, other Michiganders call it West Michigan to distance themselves from West Michigan as well.
Earlier quoted context omitted.
That looks right. I mean, it's not too far off from YC's 6% for ~12k, but I'm curious as to whether the rights they spell out affect that in any way, particularly with dilution.
If you look at YC's FAQ page it says $17K for a single founder. For 3%, $5k total seems low to me. For two founders that would be $2.5k each.
Regardless, generally speaking, the money isn't the thing that drives deals like this, it's the mentorship and exposure. In this case though, it sort of seems like a "Here's $5,000, come back with something useful, and we'll think about talking to you" sort of scenario, so I can't help but wonder about its usefulness.
I mean, it might work, and if it does, could be great for the area, but it doesn't appear to be modeled after any of the most successful incubators.