Advice - Incubator asks for 15% stake w/o funding

[dutchvw]

I am in the final year of completing my undergraduate course and I presented my business plan to the in-house Incubator of my college (school).

They are asking for a stake of 15% in the (to be formed) company.
There's no funding or even seed funding involved in here. They'll do what incubators do and provide me with a co-working place (A table & Chair) with Internet connection.........

They will mentor me and allot me a mentor who will do what he is supposed to do.

The idea relates to hospitality sector.

I live in Bangalore, India

 

[123456christian]

@dutchvw It's a rip off.

 

[dutchvw]

@123456christian I guess so, Many Thanks !

 

[momplus3]

@dutchvw If all they are doing is giving you work space and access to a couple mentors it likely isn't worth giving that much up.

• Are they providing any staff support to get things done (marketing, sales, graphic design, accounting, etc etc)?
• Are they making introductions to strategic partners, investors, etc?
• Are they helping you put together pitch decks and helping you design your pitch?
• Are they helping you bring on advisors with industry expertise that relates to your startup?

Are they doing anything else?

 

[dutchvw]

@momplus3 They'll be introducing me to strategic partners

When it comes to advisors or mentors, they said they will try to get me an mentor from the industry my start up is related to

No staff support for sales marketing or anything else

 

[lelier]

@dutchvw I need to get into the incubator business! I'll only make people give up 14% and they will even get an adjustable chair and desk!

In all seriousness this is a horrible deal.

 

[gabyy]

@lelier just because it is a horrible deal for the founders doesn't mean it's a good deal for the accel... it's just a bad, unfair deal

 

[dutchvw]

@lelier I get that

Thanks !

 

[josh437781]

@dutchvw Stay away from University Organizations. Their goal is not to produce companies that build products. Their goal is to make the University look good and it's amazing how often those two will conflict.

Also a mentor means nothing, if you are building something good you can get a mentor on your own in your field who will be more interested in helping you.

 

[dutchvw]

@josh437781 Can you please tell me more about finding the rigt mentor?
Please

 

[josh437781]

@dutchvw Think about what you need and go looking in that direction. Like tell me right here and now what you need help with because if you can't answer that no mentor can help you.

 

[dutchvw]

@josh437781 Okay I got it, Many thanks!
I have a lot of aspects where I need help

 

[613jono]

@dutchvw Terrible deal.

 

[pvr]

@dutchvw Lol, run...

 

[gabyy]

@dutchvw Not only should you not do it (unless MAYBE they have signaling power equal to YCombinator) but you should post a link here warning others not to do it.

 

[dutchvw]

@gabyy They are far from YC, light years away!

 

[gabyy]

@dutchvw then yeah - stay away... and if you want to define your customer segment and run an experiment in our VIRTUAL accelerator, I will give you $500 and not take ANYTHING (but you have to share your learnings with other entrepreneurs here) bit.ly/lshypotheses

 

[junebug72]

@dutchvw Find your own space, Reddit would be happy to help mentor you. Or shoot me a PM if you ever wanna chat. Don't get ripped off and waste your money!

 

[rose2112]

@dutchvw ITS A TRAP!

 

[613jono]

@dutchvw rip off