Several business leaders in southwest Washington state are working to develop what they are calling a business “accelerator” to help give emerging startup companies the support services they need, according to the Columbian.
According to the paper, the project would give attorneys, accountants and other established companies free or low-cost office space. In return for the space, they would provide startup companies with guidance at least eight hours a week.
To use those services, startups will give the incubator a small portion – 1 to 2 percent – of their equity, the paper reports. The incubator would then redeem that investment if the company is able to thrive, or even go public.
“Then the cost to the community is very low, and the benefit is very high,” Kathy Sego, a member of the Columbia River Economic Development Council’s advisory board, told the paper.
Most startups could use the additional help. In a recent interview with Bloomberg, veteran business consultant Irina Patterson said that 95 percent of small business owners that look for outside investment aren’t ready to pitch to potential investors, and need more time to develop their business plans.
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