How much equity does 500 Startups take?

How much equity does 500 Startups take?

Money. Being a 500 Startups company will validate your business, and our network will help you connect with investors when the time is right. 500 Startup’s standard accelerator deal is a $150,000 investment in return for a 6% stake. We charge $37,500 to participate, but the fees can be deducted from our investment.

What does 500 Startups look for?

One a company has product market fit, they should have either scalable internet-based distribution (search, social, mobile) or a proven ability to scale sales. 500 has an in-house distro team of growth marketing experts that specializes in advising post-seed companies preparing to raise their Series A round.

Where is 500 Startups located?

San Francisco
500 Startups has locations in San Francisco, Mexico City, Miami, Dubai, Bahrain, Istanbul, Seoul, Singapore, Bangkok, Ho Chi Minh City, and Kuala Lumpur.

Who is Khailee Ng?

Khailee Ng is a managing partner of 500 Startups, a Silicon Valley based venture capital firm. His investment activity and industry opinions are featured by Bloomberg, TechCrunch, Wall Street Journal, and Fortune, and the 500 Startups portfolio of companies have collectively raised over $10Billion USD.

Who gets equity in a startup?

Often, startup founders, employees, and investors will own equity in a startup. Initially, founders own 100% their startup’s equity, though they eventually give away the majority of their equity over time to co-founders, investors, and employees.

Are startup accelerators worth it?

Not all startup accelerators are created equal. This phenomenon brings advantages to the tech community; accelerators often inject a renewed sense of excitement into local startup scenes. However, the sad truth is that very few accelerators are actually worth participating in.

What happened to Dave McClure?

Outspoken tech investor Dave McClure helped fund 1,800 early-stage companies in 60 countries as the chief executive officer of 500 Startups—until he stepped down two years ago in a sexual misconduct scandal that roiled the industry. Today, McClure is working on a second act, albeit a lower-profile one.

How do startups get funding?

If you can’t fund your business on your own, try getting a loan or line of credit from your local bank. You could always ask your friends and family for help. Venture capitalists, angel investors, strategic partners, and crowdfunding platforms are also great options to consider.

Is 1 equity in a startup good?

1% may make sense for an employee joining after a Series A financing, but do not make the mistake of thinking that an early-stage employee is the same as a post-Series A employee. Since your risk is higher than a post-Series A employee, your equity percentage should be higher as well.

How do startups pay employees?

Offer them stock Of course, the most obvious approach is to supplement salaries with company equity. If employees feel confident the business will take off—and those who don’t shouldn’t be working for you—then they’ll probably be willing to accept lower-than-market wages, as long as they’re getting stock.

Who are the founders of the 500 Startups?

From Wikipedia, the free encyclopedia 500 Startups is an early-stage venture fund and seed accelerator founded in 2010 by Dave McClure and Christine Tsai. The fund admitted a first “class” of twelve startups to its incubator office in Mountain View, California in February, 2011.

How many startups are there in the world?

pushed everyone to be better and iterate faster.” 500 Startups isn’t just a name — we really have invested in over 500 companies. The numbers speak for themselves. Diversity is not just a strategy or tactic. It’s who we are. We’re based in Silicon Valley, but the 500 Family exists all over the world.

When did 500 Startups acquire Mexican.VC?

In 2012, 500 Startups acquired Mexican.VC, an accelerator in Mexico City, expecting to ramp up its investment in Mexico substantially. Through its investment in Alta Ventures, 500 Startups planned have better access to deal-flow in this region.

How many startups have Alta Ventures invested in?

Through its investment in Alta Ventures, 500 Startups planned have better access to deal-flow in this region. As of August 1, 2015, 500 Startups had invested in over 1,200 companies including Eat App IDreamBooks, Little Eye Labs, myGengo, Cucumbertown,, Canva, Udemy, RidePal.