Many incubator programs for tech startups have been focusing on the experience of the entrepreneur, setting them up with mentors and other experts for the purpose of guiding them in the right direction. But SproutBox is taking this concept a step further by offering these experiences as the primary set of resources for the startup, instead of cash funding.
Indiana-based SproutBox is doling out around $250,000 worth of services to each startup, which includes full-time coders, creatives and business experts ripe with advice from marketing to human resources and accounting. In exchange for equity, SproutBox aggregates several aspects of launching and running a business for the purpose of granting startups the knowledge they need to get their company to the next level.
SproutBox is currently accepting applications for its next round of startups. Four companies will be the recipients of SproutBox’s set of tools, resources and expertise. The company says it keeps the number of startups it works with very limited in order to provide a highly customized and intense program for each unique business model.
Will this approach work, especially in our current economy? On the one hand, many are looking to entrepreneurship as a way to take control over their own working situation and environment. On the other hand, funding has decreased for many startups across several industries, with many startups having to close their doors due to a lack of funding and/or revenue.
Removing some of the financial burden of an incubator program and replacing it with direct advice and involvement seems to be an idealistic approach to the startup world, but it may be one that keeps all parties involved focused on the right aspects of a startup’s potential, theoretically providing incentives for everyone towards success.
As the economy forces many of us to rethink the way we spend money and do business, the venture capital and incubator programs are not immune to this necessity. It will be interesting and educational to see how SproutBox uses its approach towards startups.