Y Combinator for Atlanta – Part 2

My previous post on a Y Combinator for Atlanta has generated a good bit of off-line interest. Here are the most common questions I’ve been asked:

  • How would you choose the teams?
  • Do you think there will be enough interest and applications?
  • How will it differ from the original Y Combinator?
  • What happens to the teams at the end of the program?
We’ll find out these answers and more over the next 12 months.

Y Combinator for Atlanta – Costs?

Lance Weatherby has an interesting post titled “Who Wants Seed Money?” in which he discusses the idea of a Y Combinator for the Southeast. I’m a proponent of the idea and was part of the discussions last year with the people he mentions. Mike Landman and I hashed out the idea once again today at lunch and concluded that Atlanta really needs such a program. Mike is heading up the EO Accelerator program for Atlanta which helps entrepreneurs with businesses between $250k and $750k grow to $1 million plus so as to be eligible to join EO (which I highly recommend).

Naturally, Mike and I dove right into some of the details of doing a Y Combinator for Atlanta. We each have a couple thousand extra square feet at our respective corporate offices to provide a co-working environment. What are some of the other costs? Here are the initial thoughts on costs on an annual basis:

  • Managing Partner – volunteer (~$5k in expenses to talk at regional organizations and schools)
  • Part-time Program Coordinator – $20k
  • 5 teams in one summer class @ $20k investment per team – $100k
  • Office space (2,000+ sq feet for 20 people) – $25k (possibly less)
  • Legal – $5k
  • Accounting – $3k
  • Miscellaneous (food, infrastructure, etc) – $7k
  • Cushion (more people per team than expected, legal/accounting in future years) – $10k

Total: $175k annually