Molson Hart

Hey @gsvigruha I'm kicking around the idea of opening an incubator and wanted to get your opinion. 1. In Texas (cheap cost of living and no income tax) 2. Incubator participants (shorthand: eggs) establish their market rate salary. Incubator pays 50% their market rate salary.

The other 50% of the Eggs' salary is sweat equity, vesting monthly. 3. All business expenses covered by the incubator. 4. Incubator has greater control over the businesses than the Eggs do. 5. Focus on fast-profitability businesses 6. Incubator can terminate incubation any time.

7. Eggs retain equity in what they have built up to that point.

Couple of questions: a. Seems like you're looking for more like entrepreneurial employees than founders to participate, right (3, 4)? Could be a small pool, usually you give up salary for control. b. Would the shares pay dividend or are they "exit only" shares?

a. Good point. I could be a wrong, but, I think, early in one's entrepreneurial journey you are looking for financial upside and good advice as much as a sense of control. b. Depends on company, but I'll say dividend.

a. yes, it can work for first timers probably. b. dividend is better in your case IMO. exits can take long and not many can afford 50% salary for a decade. but if you want early profitability this way your interests aligned.

re: b, at current market rates, 50% salary, even local market rate, in Texas is totally fine, which is a big reason for doing it down here.

well, for which job title? for a software engineer, yes. even in new york engineers forgo some salary to work at companies they like instead of banks. but i think we are kind of the exception, no?