Besides the TigerLaunch competition, there are many ways to get initial funding for developing your business idea. Friends and family are a common avenue. Or, you can try to compete for money and services from a pre-seed venture firm like YCombinator or DreamIt Ventures.
YCombinator was started a few years ago by Paul Graham and a few other entrepreneurs. If selected as a finalist, the firm gives you $15000 - $20000 in funding for a small percentage of your company. You work closely under the company’s wing in Boston for the summer (or California for the winter) as they guide you through the ropes of starting a company. Paul Graham emphasizes technical talent over experience. You can sign up for summer funding today: http://www.ycombinator.com/s2008.html . Applications are due April 2nd, but do not delay. Apply as soon as possible.
DreamItVentures is a brand new firm with an identical modus operandi, but based in Philadelphia. Moreover, they solely focus on college students, whereas Paul Graham will look at any sufficiently bright engineer. They, like Paul Graham, emphasize buliding a prototype or working product in a short time before the end of the summer. Applications are due March 12. The press release for Dream It Ventures is below.
The money can be useful, but is relatively little for starting a real company. When considering these options, remember that they can provide incredible access to venture firms, publicity to gain new customers, and a wealth of experienced mentors to teach you how to build up your first startup.
Press Release for DreamItVentures
Philadelphia, PA (January 2, 2008) - www.dreamitventures.com DreamIt Ventures I, LLC launched a revolutionary type of pre-seed venture fund today. The fund is in search of enthusiastic, bright and excessively motivated college students with big ideas who can build a prototype, beta or market ready product or service in three months. DreamIt will run from May 21 through August 22, 2008.
DreamIt is designed to provide the next wave of Innovators with the tools, funding and opportunity to turn their ideas into a business. DreamIt provides startup companies up to $30,000 and three months of active mentors and donated legal and accounting services from the Philadelphia regions top firms. The culmination of the program is marked by Funding Day where each company presents to funding sources.
This new model for funding will simultaneously accelerate the development of new businesses and increase the likelihood of success for each company by providing the necessary tools. Each company accepted into the program will be partnered with a proven successful entrepreneur to act as a Guru. In addition, DreamIt will be providing each company with the opportunity to work with a full time business Strategist to assist in mapping out commercial issues, writing a business plan and preparing the business for future funding.
The combination of great ideas coupled with a dedicated support team will increase the likelihood of success for both the founders of the company and the DreamIt fund.
DreamIt is accepting applications through March 12, 2008.