Dave McClure's answer to What is 500 Startups' business model? - Quora

Dave McClure's answer to What is 500 Startups' business model?How do they compensate themselves? Is it a 20% carry on investments? How do they incentivize their mentors? - Quora

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Dave McClure
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January 18, 2016
Former Founder, Partner at 500 Startups (company) (2010–2017)
Originally Answered: What is 500 startups business model?

In 2015, 500 Startups generated ~$14M in revenue from several sources including management fees, accelerator program tuition, events & conferences, partnerships & sponsorships, & education. In the future, we may also make money based on carry (aka profit) from our investments. In 2016 we estimate total budget will grow to $20-25M+ from increases in staff, funds under management, and other programs & services.

Historically, most of our budget...

Dave McClure's answer to What is 500 Startups' business model?How do they compensate themselves? Is it a 20% carry on investments? How do they incentivize their mentors? - Quora

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Dave McClure
·
January 18, 2016
Former Founder, Partner at 500 Startups (company) (2010–2017)
Originally Answered: What is 500 startups business model?

In 2015, 500 Startups generated ~$14M in revenue from several sources including management fees, accelerator program tuition, events & conferences, partnerships & sponsorships, & education. In the future, we may also make money based on carry (aka profit) from our investments. In 2016 we estimate total budget will grow to $20-25M+ from increases in staff, funds under management, and other programs & services.

Historically, most of our budget has come from 3 primary sources: mgmt fees from our investment funds, tuition fees that cover our accelerator programs, and attendance revenue & sponsorships from our events & conferences. Last year we also started making money from customer acquisition / growth marketing consulting & investor education.

Our sources of revenue in 2015 are detailed below...