3 Big Companies Launch Start-up Incubators
Apparently, start-ups are the new pet projects of some major companies.
Tech industry heavy weights Microsoft, PayPal, and Qualcomm all recently announced that they would open business incubators for multiple start-up companies. And we're talking more than just a work space. These incubators will give guidance and development support to each business.
The online payment service's COO David Chang recently told The Boston Herald that it would convert its new Boston office space into an incubator for five separate companies that participated in the MassChallenge start-up competition earlier this year. The companies include: travel site Wanderu, recycle service Greenbean Recycle, investment company BuysideFX, web ad developer Nsyrt, and hiring aid SkillHound. The five companies can spend up to a year in the incubator, after which new start-ups will come and take the space. According to The Herald, the start-ups will move into the incubator sometime in December.
"We think it’s more than just the space," Chang told the newspaper. "It's another way to encourage entrepreneurship in Boston."
The Seattle-based software company recently announced its opening a Brazilian technology center in Rio. According to news site Geek Wire, the $100 million facility will incubate 15 different Brazilian-native start-ups over a 24 month time-frame. The start-up companies have not been announced yet, but they will be native to the country of Brazil. In fact, the city of Rio’s investment promotion firm, Rio Negócios, is helping oversee the incubator's launch and development.
On top of access to tech, marketing, and financial support, the start-ups will receive guidance from angel investors, along with connections to possible partners and investors, according to Microsoft’s statement.
"Our hope is to foster the exchange of knowledge amongst research teams, universities, start-ups, and the Brazilian market, supporting the City of Rio’s transformation into in a great technological hub," Microsoft of Brazil General Manager Michel Levy said in a statement.
Telecommunications company Qualcomm announced earlier this year it would launch a start-up incubator called Qualcomm Labs. Making good on that promise, the tech company announced yesterday that it had selected its first class of start-ups. The three companies include: software developer Arynga, malware detector FatSkunk, and mobile app developer Breadcrumbs.
All three companies will get 24 months in one of Qualcomm’s two incubator sites, along with guidance and mentorship from Qualcomm employees and investment advisors. Breadcrumbs was awarded $50,000 in funding while FatSkunk and Arynga were given $250,000, according to Qualcomm's statement.
"Qualcomm Labs' roots in technology innovation combined with our continuous commitment to move the wireless industry forward, puts us in a unique position to support entrepreneurs to transform their ideas into businesses," Qualcomm Labs Vice President Liz Gasser said in a statement.