Comments on: Micro financing in Montreal..? http://www.QuebecValley.com/2007/09/10/micro-financing-in-montreal/ The Internet Startup Valley in Quebec Tue, 09 Jun 2009 00:41:37 -0600 http://wordpress.org/?v=2.8.6 hourly 1 By: Ben Yoskovitz http://www.QuebecValley.com/2007/09/10/micro-financing-in-montreal/comment-page-1/#comment-29 Ben Yoskovitz Mon, 10 Sep 2007 18:46:42 +0000 http://QuebecValley.com/2007/09/10/micro-financing-in-montreal/#comment-29 The challenge for VCs is whether or not they can change their mindset substantially enough to run a lightweight, fast-moving early stage seed fund. The funding strategy and approach (i.e. due diligence, legal, etc.) has to be hugely different than what VCs normally go through. As for Y Combinator, there may have been some early grumbling about the value they bring, but having seen it first hand, talking to Y Combinator funded companies and seeing the overall success rate, I don't think anyone would say that anymore. And in fact, we now have copycats like TechStars emerging. Incubators of the Y Combinator variety can work. Personally I love the model. Whether you can get enough ultra high quality companies on board, along with the right investors, advisers, etc. is another question. The challenge for VCs is whether or not they can change their mindset substantially enough to run a lightweight, fast-moving early stage seed fund. The funding strategy and approach (i.e. due diligence, legal, etc.) has to be hugely different than what VCs normally go through.

As for Y Combinator, there may have been some early grumbling about the value they bring, but having seen it first hand, talking to Y Combinator funded companies and seeing the overall success rate, I don’t think anyone would say that anymore. And in fact, we now have copycats like TechStars emerging.

Incubators of the Y Combinator variety can work. Personally I love the model. Whether you can get enough ultra high quality companies on board, along with the right investors, advisers, etc. is another question.

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