Is this sponsored by the local government? Are they hoping for it to be sustainable?
I mean, this can (and likely will) be really beneficial for those who get in... but what/where's the endgame?
I mean, this can (and likely will) be really beneficial for those who get in... but what/where's the endgame?
Living expenses for 10 weeks and meals for however many people, plus high-profile speakers? This is going to be expensive, even with the benefits you two mentioned.
Just a note: I'm not "suspicious" of Red Gate's motives (I believe them when they say that this is catch-free and that they made this program to help others); I'm curious as to who is funding this and why.
As for their motives, I see part of it is about 'real-world karma', and part of it is that it's really not a huge cost to them with a range of benefits.
Providing (presumably spare) office space and canteen meals (albeit in their nice company restaurant) to a small team for 10 weeks isn't going to be a huge cost to a company that employs 160 people.
If the startups they have fail, but they have smart people, then it's potentially cheap recruitment for them (it costs about US$10k on average to recruit an average software developer in Cambridge via agencies). If the companies succeed, at least to the point of getting a promising product, then presumably it provides a range of commercial opportunities.
I think this is a great move, and something I hope other companies might follow. Red Gate are in the fortunate position of being profitable and not having external shareholders to worry about, which has perhaps made this easier for them to do. But if they can demonstrate the model can work, then it will make it easier for others to copy.
Speculating, but apart from the benevolence aspect, probably to establish close links with companies that will use Red Gate products, and ideally (re)sell them to other client companies (hence desire on business-orientated rather that consumer-orientated startups), as well as to ideally make an investment or take equity in any companies that go through the process at a later stage.
But why not ask them directly?...
Neil Davidson
neil.davidson@red-gate.com
twitter: @neildavidson
(http://blog.businessofsoftware.org/)
Amir Chaudhry
amir.chaudhry@red-gate.com
twitter: @amirmcFor example, we've already got a handful of startups at Red Gate (go-test.it, broadersheet.com and mixcloud) and there are all sorts of unintented, positive benefits. A couple of them have done some contracting work for use, they've introduced us to friends / relatives who've ended up working for us, and so on. And that's just the short-term stuff. Who knows what will happen long term.
Neil