The novel part (I think) is banding together and using it as a formal startup incubator.

I agree that the harder part is finding like minded people, which is why I put the idea up here. If it resonates with this crowd I think it is worth exploring further.

As for the risk, I believe grouping together lowers the risk. If each partner brings in a client there are more projects to share, and economies of scale make it easier to share resources and services. Speaking from experience, I can say going at a start up alone is not an easy endeavor.

But not only do you have to like the other people, you have to like their side projects, since everyone shares until ramen profitability. But most "side project" ideas are terrible. It seems to me that you'd end up with a bunch of megalomaniacs who are mediocre people.

I'm not trying to be a wet blanket, but this strikes me as an incubator (ugh) where the inmates run the asylum. To me, the safest thing is still saving up some money, having a really good idea, and finding some technical friends to go "all in" with you for a year.

The idea is that everyone is working on their own side project half of the time. If other members of the team collaborate it is in exchange for equity. No one is being asked to work on a startup they are not interested in.

Hopefully a group of entrepreneurs that are working together to create startups are also helping vet each others ideas. Going back to other people's comments, the team dynamics would be pretty important. If you think of your partners as inmates in an asylum the whole thing is probably doomed to failure no matter who is providing direction.

I actually have started a company with savings, which was enough money to support one person (me) for a year. I doubt I could have found other people who happened to be temporarily financially independent at the exact same time and interested in my idea. This way seems more practical to me.