Next month, pair Networks will kick off its own business incubator program, providing space in its South Side offices along with equipment and advice to one or two chosen teams who will work on their ideas for three months.
Economic development groups or universities, and not-for-profit companies, typically host incubators. Still, "People will be hearing a lot more about this segment -- it's new, and it's cutting-edge," pair Networks spokesman Scott Hallam said Friday.
With its growing technology sector, Pittsburgh is an ideal locale for the company's pairIncubator, Hallam said.
"There is so much talent here, so many bright people and ideas," he said, and pair Networks figured it could "help these people who may have some great ideas, but don't know how to start or where to go."
Here are the basics: Applications for the first pairIncubator program are due Aug. 10, and participants will be chosen by Aug. 18. Details are at www.pairincubator.com. The program is to be offered each spring and fall.
Teams of two to four business "founders" are expected to work 40 or more hours each week at pair Networks' Riverpark Commons offices, with provided computers and other office equipment. They'll glean advice from company leaders and other local entrepreneurs.
Meanwhile, pair Networks will set up a corporation for them and, at the end of the process, may help the team find venture capital. What does the company get? An ownership stake of usually "no more than" 10 percent, the program description said.
Some involved in the local technology community winced at that figure. "Three months, and then 10 percent? I don't know about that," said Gary Rosensteel, who directs Help Startups, a local organization for entrepreneurs.
Nationally, companies such as Y Combinator, based in Boston, invest in new companies in exchange for small stakes. "And 10 percent is on the high end," said Terri Glueck, spokeswoman for Innovation Works.
The state-funded nonprofit recently chose six early-stage companies for its first AlphaLab program, which provides office space and resources for six months in exchange for a 3 percent stake. Participants must keep their companies in the Pittsburgh region for five years.
"It's good to hear that another organization is doing this," Glueck said.
The advent of pair Networks' program shows the local software and Web-based business community "is becoming more robust, with more options," she said.
No comments:
Post a Comment