Yes, we get a lot out of an incubator. We're funded by a Danish VC and our HQ is in Copenhagen, Denmark. By joining 500 Startups, we'll get a chance to build a network in Silicon Valley and meet mentors like Andrew Chen, Hiten Shah and of course Dave McClure. And just like the rest of the batch, it gives us a four month period of intense focus on product development.

These companies seem to solve very specific issues. It's possible they plan on building a sustainable business model before growing to tackle bigger challenges. Was Google a "big innovation" when it launched, or just another search engine? The world is 500 startups richer and there's nothing to be disappointed about.

Edit: A better example.. Amazon was just an online book store. Now I can't launch a website without getting them involved.

Edit2: I looked up Tealet and it seems like a well executed vision. Writing them off as a disappointment is a dick move. Where are your mind-blowing innovations?

In general you shouldn't write off any of the startups in incubators after one month - especially not in 500 startups and YC where there are many talented teams applying and good screening processes.

Amazon might not be a good example in this context. They had a huge challenge from the outset - selling millions of books online (as compared to the ~100,000 in a typical large B&N).

Obviously I do agree that they're much bigger than even that now.

Actually, tea can be a profitable business with the right niche.

I know several people that spend serious money on that (over here, Argentinean Ines Berton blends are the most sought after - http://www.tealosophy.com/eng/eng.html ).

Edit: It won't be Facebook-sized, but if the customer validation works (and they really know their stuff - much like with wine, premium tea drinkers can be picky), they might be on to something.

Personally, I worry about them losing the "experience" factor that one gets from going tea shopping.

I'm not saying it is a bad business. Actually I just launched a subscription based business on my own around fine food for the Belgium market ( http://foodsterbox.com ).

It is just that I though 500 Startups were looking for more innovative startups.

It won't be Facebook-sized - if I recall correctly, thefacebook page with my profile and relationship status didn't look "Facebook-sized" when they first released either.