Incubators with massive overhead and small funds are economically unsustainable
Sandeep Aneja · 100x Entrepreneur | Episode 8 | Sandeep Aneja, Founder and Managing Partner, Kaizen Private Equity · Sep 7, 2019 · at 5:04
Sandeep Aneja, Founder of Kaizen Private Equity, reflects on the structural collapse of Wingspring, a Palo Alto tech incubator where he worked during his time at Stanford.
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“And, ah, that whole incubator business model was flawed. Although we made some really good investments, that did really well, but the cost structure of an incubator, including a 30,000 square foot facility, and four partners, only seventeen million dollars under management, was not sustainable.”
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