Berkeley Ventures’ new incubator breaks from summer program model

July 15, 2009 | Camille Ricketts | Comments | |

uc-berkeley_campusBerkeley Ventures, a new Bay Area incubator for early-stage companies across tech sectors, has just launched with a unique offering: Unlike Y Combinator or TechStars — incubators that run three-month programs — Berkeley It will provide startups with ongoing support for up to two years.

In addition to providing $5,000 to $10,000 in seed money to some startups (in exchange for a 3 to 9 percent stake in each company), the Berkeley, Calif.-based firm will also house companies rent-free for three months, run mentorship programs, and offer discounted access to marketing, legal and technical advisers. Its members will also have the option of staying in the firm’s 8,400 square-foot space for discounted rent after the first three months until they are capable of relocating.

The incubator is emphasizing its 10-minute proximity from the UC Berkeley Campus and San Francisco as major advantages for prospective startups. It says it has connections at the university as well as nearby Stanford to help its portfolio companies assemble strong, knowledgeable boards. It also hosts regular events where fledgling managers can meet each other and advisers, and of course investors. On specified Investor Days, startups have the chance to present to angels and venture capital groups.

Berkeley Ventures says it is looking for a diversity of startups for its flock, cutting across high tech, application development, cleantech, Web 2.0, finance, gaming, mobile and social networking. Companies from anywhere in the world can apply, but must be smaller that six employees to be eligible.

While it’s still reviewing applications for its first batch of startups, it has already recruited an impressive crop of advisers, including Jeff Braun, founder and CEO of Maxis before it was acquired by Electronic Arts, Anthony Patek, an attorney from Cooley Godward and Kronish, and Joel Serface of Kleiner Perkins Caufield and Byers, who works closely with the U.S. Department of Energy.

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About the Author, Camille Ricketts

Camille is the lead writer for GreenBeat. She came to VentureBeat from Google where she worked on its traditional platforms team, particularly in TV. Before that, she was a reporter for the Wall Street Journal in New York and London. Follow her on Twitter at @camillericketts, and follow VentureBeat on Twitter at @venturebeat.

With GreenBeat 2009, VentureBeat's all-star conference on all things Smart Grid, coming up in November, Camille will be expanding coverage of this exciting space. Stay up to date by following @greenbeat2009 on Twitter or by becoming a fan of the event on Facebook here.

  • elliottdahan
    Definitely a step in the right direction.

    The "heavy lifting" of Seed development is: sourcing, screening and then oversight.

    The current crop of drive-by mentoring programs, summer camps and entrepreneur reality shows provide a bit of affirmation for the entrepreneur, but are really very cruel jokes.

    Berkeley Ventures model seems to have only 2 drawbacks:

    (1) 3%-9% for $5K-$10K is higher than any other equity program I have seen. Then again, all fixed equity programs at the Seed stage make no sense. Seed money should be convertible preferred with a premium to the A Round. Why is the Seed investor setting valuation ? - either you undervalue and screw the entrepreneur or you overvalue and scare the Series A investor.

    (2) Berkeley Ventures should make it very clear on their website whether or not acceptance into the physical incubator includes funding - or whether funding and physical incubation are 2 separate stages.

    Kinda makes you wonder what ever happened to non-profit incubators and what they were supposed to be doing ?

    Thanks,

    Elliott Dahan
    Managing Partner
    The Growth Group
    elliott(a)thegrowthgroup.com
    http://www.thegrowthgroup.com
  • I'm glad to see more micro venture funds are appearing the Bay Area. It makes sense to have more of them near the Silicon Valley.
  • berkeleyventures
    We appreciate everyone's comments. Berkeley Ventures is excited about supporting entrepreneurs. We are providing essential resources to startups in the form of mentorship, facilities, and an investor network. Berkeley Ventures works with each startup to develop a customized program where we establish milestones, provide critical resources, and host them as long as they need. We have rolling admissions and companies can enter the program at any time. Feel free to send us an email at info[at]berkeleyventures.com.
  • Interesting... Got a call from the director, Berkeley Ventures today.