Stanford University's startup accelerator may be one of the few that take zero equity from its chosen businesses, but it touts an average of $3 million in funding.
"Most Stanford students go to learn engineering and the best way to build products is to do it," Cameron Teitelman, StartX founder and chief executive told Press:Here. "The students spend their time learning, meeting people, and 30 percent of their time building companies or products."
Would-be entrepreneurs apply online and the accelerator has a 10 percent acceptance rate, Teitelman said. The accelerator looks fro people who are passionate about fixing a problem, have good team dynamics, and must be able to learn from mistakes. Teitelman said the group frequently asks teams, "When will you give up?" in order to see their commitment and ability to change direction when faced with insurmountable odds. "They have to know the right mix of confidence and stubbornness," he said.
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About 7 percent of Stanford students apply to the accelerator, but the Stanford accelerator has no equity stake. Instead, the university has a legally separate entity called the Stanford-StartX Fund which can invest in the companies.