Re:Y Combinator When No One Cared
by taneq on Tuesday May 02, 2017 @09:35AM
(#14246177)
I was attending an event at a local incubator last week when it hit me - and maybe this is obvious to everyone else - that 'startup incubators' are just taking the music industry business model and applying it to entrepreneurs.
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Not really, artistic talent has historically relinquished all IP rights. Incubators are more like a tax to get involved in the VC ecosystem, if anything.
It might be helpful to explain more what parts of the analogy you have in mind with that.
They operate like a music studio or production company. They take applications from (or scout out) likely-looking 'undiscovered' artists / entrepreneurs, and offer them an advance / venture capital, along with advice and other resources, to create an album / product, in return for which they take an interest (shares / rights) in the resulting product.
The details vary slightly (as the other response said, music studios typically take the rights to the album in exchange for royalties, rather than directly becoming a part-owner of the artist) but the basic model looks very similar to me.