Top Startup Incubators And Accelerators,
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Incubators have become an increasingly important part of the tech startup scene in recent years.
A number of hot startups have emerged from these programs, encouraging more new entrepreneurs to apply. They've become so popular that about one accelerator a day launches these days, says David Cohen, head of . Not only are they popping up in many cities, but also in specific verticals, such as education. These incubators have been called alternatives to MBAs. Emphasizing that concept, Y Combinator now even accepts applicants who don't even have a startup idea.
These programs provide new entrepreneurs with mentorship, advice and practical training on technical, business and fundraising topics to help them get from idea to product to launch and beyond. They typically take a small piece of equity in exchange for a small amount of cash and entry into the program. incubators and accelerators. The rankings (see the chart below) are based on a number of factors, focusing on the value of the incubators' companies. In other words, we took the exit prices or the last priced equity valuation of the companies that have gone through each program. We also took into account other measures, such as how much venture funding their companies have raised, what percentage of their companies have raised funding and what percentage of their companies have been acquired or gone out of business. (Note: some firms provided us data for the rankings on condition that we not publish it.) The Midas List, which ranks the top 100 venture capitalists in the world, launched Wednesday, May 2.
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The top incubator in our analysis is Y Combinator. When taking into account the 172 companies that have been acquired, shut down or raised funding, the total value is $7.78 billion, for an average of $45.2 million per company. It's a remarkable figure, considering the Mountain View, Calif. based firm has been in existence for seven years. The data is of course skewed by certain large companies. Y Combinator did not identify individual companies' valuations in data that they provided, but Dropbox and Airbnb are very large. Still, even if you remove the two, the firm still has a strong hit ratio and number of absolute hits. Some of its biggest exits include: 280 North, Heroku, OMGPOP, Loopt, Cloudkick, Zecter, Wufoo and Reddit. For comparison, last June, Y Combinator said its top 21 companies were worth $4.7 billion.
Y Combinator
Mountain View, Calif.
Dropbox and Airbnb are just the biggest names in portfolio. Investors fight to invest in YC companies at sky high prices. Founded in 2005.
Boulder, Boston, New York, Seattle, San Antonio
Founded in 2007, it has grown to five cities, but keeps batches small to give each startup extra attention. Has broader impact by helping other incubators.
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