Written by Chris Norris of EvoNexus
Startup incubators provide startups a faster, better chance of success through mentorship driven programs. In essence, that’s the allure of an incubator.
Incubators typically provide startups the key ingredients needs for success: office space, the best network of mentors and investors, networking events, collaboration with other like-minded entrepreneurs and a program that drives a startup to move fast. Incubators are often seen as the best place to launch a startup. It’s rich with benefits and allows the startup to focus on company and product development without having to worry about the hassle of things like leasing an office or getting an Internet connection set up. For most startups, creating and innovating sounds a lot more appealing than waiting four hours for the cable guy that may or may not show up.
In addition to giving companies the freedom to focus on work, incubators give startups access to business networks and investor contacts they otherwise might not even know how to find. In exchange for all these great benefits, the startup typically gives up some form of equity to the incubator or pays a fee. Y-Combinator takes 7%, the 500 startups accelerator takes 5%, and there are some programs that take even more, as much as 50%!
For some entrepreneurs, this can be more than worth the benefit received in return. Access to a network as strong as those offered from world-renowned programs like Y-Combinator or 500 startups can be tough to beat. However, there are several options out there that don’t require any equity or fees. One such option is a local incubator in San Diego and Irvine that has proven an excellent accelerator or incubator program does not need to come with the stipulation of giving up anything in return.
Where EvoNexus differs from traditional incubators is that they offer startup companies all these benefits without requiring any equity or IP-related obligations from the company. In other words, entrepreneurs reap all the benefits of the incubator without having to sacrifice any shares or percentage of their company.
EvoNexus was formed by local San Diego entrepreneurs who wanted to inspire the talented people in San Diego to launch startups. EvoNexus wants to move the needle in growing the San Diego economy. Their mission is to build a sustainable community supported, technology business incubator to launch companies, raise capital and create outcomes.
With 3 locations, over 83 admitted startups to date and 88% of those startups still active, it would appear the organization is succeeding.
EvoNexus is a fully pro-bono and community supported technology incubator that has a mentor driven program, hosts speaker and networking events, and workshops on a regular basis for the incubator’s aspiring entrepreneurs.
EvoNexus gives companies access to executive level contacts from large tech companies like Qualcomm, Sony, LG, Samsung, etc. Additionally, EvoNexus has strategic funding partnerships with Qualcomm, Cisco, and Mitchell International. Each respective company has a representative on the EvoNexus selection company and will consider investing seed funding into startups admitted that fit within their areas of interest.
The relationships EvoNexus has built over the years with these companies, as well as others, has resulted in eight companies being acquired and $573 million in total venture funding and acquisition outcomes by companies from the EvoNexus incubator.
Accelerators and incubators have become increasingly important to startups all across the country, especially in southern California. It’s why establishments like EvoNexus have been able to grow and thrive. As the region’s only fully pro bono tech incubator, EvoNexus is launching a third location in Irvine, hoping to replicate its success in San Diego by being a resource and a hub for startups.
About the Author
Chris Norris is the marketing coordinator at EvoNexus. Chris earned his B.A. in Communications and Economics from Southwestern University and his Masters in Global Business Management from the University of Alabama. Prior to joining EvoNexus, Chris was involved in the creation of startups and served in the United States Peace Corps. His hobbies include writing and playing sports.