He estimates that of the 750 or so U.S. incubators, more than half of them are government-funded. Of the remaining, only about 100 are Internet focused, and of those, only about 10 are sponsored by corporations. But other companies may well follow. Looking for a few good startups For startups, admission to the incubator starts with an online application form. Matsushita looks for companies that have strong marketplaces as well as good potential to be helped out strategically.
Applicants go through several screenings.
Those admitted pay rent, although the terms are quite flexible, and Matsushita takes a miniscule one percent ownership in the company, mostly to help defray the long-term costs. But we've run these models before and it more than pays for itself. Matsushita also has the right to invest up to 10 percent of the first institutional round of funding, and has taken that option with every company so far. We also ask for the right to invest in the first round of financing, but we are partnering with the Silicon Valley venture community and we let the community decide on what companies to fund. Not all startups prosper, of course.