Wayra is an initiative regarding startups (theoretically not only tech) founded by telefonica in 2011.
Having started with the premises to form incubators only in 8 latin-american countries + Spain and 10 projects a year on each; it quickly expanded to have 20 projects a year and gas opened other european countries including Germany and Ireland. It has annouced to expand even more. This expansion gives an indication on it's success or at least importance
Now what I want to talk about here is their conditions, from last year edition I summarize here what they claim:
- They fund projects in their early stage. Even the very early, when it is just an idea.
- They will fund projects according to their needs to a maximum of 70.000 USD (This I read in previous editions though it is not mentioned currently); with no return
- They will provide soffices for the startup team, plus the inevitable advertising
- They will open their infrastructure to your project if needed/affordable, free of charge, as if you were partners. Telefonica's infrastructure is simply Huge
- Their counter is: depending on the cash funding they will hold a maximum of 15% of the shares of your company. (If 70.000 USD is the max then they value you at +450.000)
- They will not hold any rights on your company. Once you finish your time in the incubator they will only hold whatever share they have (max 15%) and don't belong in the board.
The real deal here is that the investment goes in very early stage and their focus is precisely on tech startups that are in such stage. I ask to anyone who knows more about incubators: how good are these terms?
What other incubators are there that do not have a standard funding/share ratio and fund in such early stage?