Location: Remote (The whole world)
Target group: young founders, highschool or early college (age 16-24)
Duration: 3 months, available during the whole year
The offer: We give EUR 1500 x N for 3 months program. Where N is a number of founders. In return, we keep 51% of the company and give 49% to founders.
The Number of founders: 1-3
Supported countries: All countries in the world
Q: How we got our numbers?
Jobbrs Incubator is inspired by original Y Combinator from 2005 where they originally gave USD $6,000 x N for 3 months in return of 6%. Their incubator was located in Cambridge, MA (USA) and they calculated $2,000/month are the costs of living if you work, pay the rent, and eat. As a geek, you should have your own computer.
The offer is optimized for places where Numbeo cost of living index is 50 or less, examples for a few capitals:
Belgrade, Serbia 40.49
Kiev (Kyiv), Ukraine 32.90
Bogota, Colombia 31.17
Cairo, Egypt 32.00
Mumbai, India 29.04
Manila, Philippines 42.32
The cost of living in those places with the same premises should be up to 500 EUR/month.
For 3 months, it's 1,500 EUR.
Q: Why do you take so huge percentages for so small amounts?
The amount is just enough to bootstrap into profitable business in 3 months. We are experts in building profitable businesses from day one. Think that you would own half of a profitable business in 3 months.
Our approach to building a profitable business is explained in the book: The 7 Day Startup by Dan Norris.
VC's in the USA have totally different math. While they initially take 6-15% in similar seed phase, they are thinking in advance about how many investment rounds there would be and for how much founders percentage would shrink in every next round. What interests the VC investors is that the founders have just enough chunk of ownership in 5-10 years period, to keep moving over the human limits. In a standard VC model, you would own way less than 49% of the company at the moment when business would become profitable.
Our model is not to expect more investments, instead, we are focusing on profit from day one.
My quick math on Postmates:— Chris Bakke (@ChrisJBakke) July 6, 2020
▫️~$2.50b goes to investors
▫️~$150m for founders + team (of 5k+ people)
Delivery is wonderful for us as consumers, but an incredibly hard business. https://t.co/O8Josvz7TO
During the 2010s, Bulgaria-based accelerator Eleven invested €25K – €200K in 116 startups from the Balkans, totaling €12 million. They had only two exits. Based on Eleven numbers, the Balkans startup success rate is 1.72%. Only 1 of 58 startups from the Balkans would have succeeded.
SMSBump was sold for USD $35M. Eleven Stake was 5.7%, so they earned around $2M (around €1.75M) on exit. The second exit was ShareYourCart for an undisclosed amount.
Based on these numbers, the investors are in huge debt, have hit the rock bottom and 114 startups (98.28%) have failed.
I suspect the future is mostly no-code mostly remote mostly bootstrapped people spinning up projects with paid customers from day one.— Isaac M. Morehouse (@isaacmorehouse) July 22, 2020
The "new 5M is 500k" is now old. The new 500k might be approaching 0.
Q: What would happen after the first 3 months?
IF BUSINESS IS PROFITABLE
1. We would invest more money (up to 20,000 EUR in the first year). We would lend the money to the company as a non-interest loan. That means the founders keep their original ownership percentage and the company can repay money to Jobbrs from future profit, without interest. Building that kind of business is our goal.
2. If larger investment (more than 50,000 EUR in the first year) is required, we would bring outside investors to the table. In that case, the ownership percentage for all of us would shrink. Now you see why option 1 sounds better. More ownership to all of us, if we build a profitable business from day one without too much money needed to invest.
In that case, there is a possibility of moving things VC way. In that case, relocation to the USA or some other 1st world country is possibly required.
In the case that the required investment is between 20k and 50k EUR, we will decide between those two options based on the each case specifically.
IF BUSINESS IS NOT-PROFITABLE
1. We would sell what we have after 3 months, distribute the money from sales and perhaps start a new business together again. 2. If it is not possible to sell what we have after 3 months, we will shut down the company and perhaps start a new one together again.
Q: What if the business is not profitable after the first 3 months?
Depending on the potential of the business and the amount of money required to grow, the options are:
- if a smaller amount is required, we will invest our own money
- if the medium size of the investment is required, we will look into the network of our friends and clients who are also angel investors (located in both Europe and the USA)
- if large size of the investment is required, we will go US startup founding route
If there is no potential in business, the options are:
- to sell what we have after 3 months
- to kill the company and perhaps start a new one together again
Q: Do you accept only 1 founder?
Yes! While other incubators prefer teams of at least 2 people, we believe in 1 founder.
Q: When Jobbrs is NOT a good option for you?
If you are interested in the VC model of funding startups, Jobbrs is obviously not a good choice. Our model is that we give a small amount of money and a lot of wisdom to build bootstrapped profitable business in 3 months.
Q: What do I get from Jobbrs Incubator?
This is not an academy or accelerator. You would not listen to lectures and have access to mentors from well-known local or global startups.
Instead, you will have direct access and leadership (not only mentorship) to people who have "been there, done that". They have built a million-dollar business from nothing at your age. Even more importantly, when they were around 18 years old, they would have gladly accepted this deal.
Q: What if someone steals my $1 million $1 billion idea?
Ideas are worthless until you have a profitable business.