IT incubator, the Founder Institute (FI) is launching in SA with the aim of equipping technology start-ups with enough skills to get a business off the ground within 15 weeks.
The local chapter is part of a global community that has a presence in 35 cities and has aided more than 650 new businesses in getting off the ground since it started three years ago, creating around 10 000 jobs.
Director Keith Jones explains that the formula the institute uses has come out of Silicon Valley and has been developed to generate success. He says the institute takes in between 30 and 40 students, who complete a course that includes lectures facilitated by CEOs. However, admission requires passing an online aptitude test.
"Ideas generated here in our own backyard are making an impact around the world, particularly in the IT sector," says Jones. "What we lack is a vehicle to help bridge the gap between concept and going concern. The FI provides just the right level of support and guidance to help potential founders take that leap."
Around 60% of the class graduates, with about 10% falling off in the first week. The balance of those who do not make it are cut at five weeks, says Jones. He adds that the course has a 70% to 80% success rate.
Standing out
Director Odette Jones, a specialist in human capital development, says: "As important as business skills are, successful entrepreneurs have to have that essential 'X factor' to stand out from the crowd.
"The FI applies a combination of online aptitude and personality tests to all potential applicants, and only those who display optimal results in this testing phase are accepted into the programme where they are nurtured and coached according to the FI formula."
Those who make it agree to give back 3.5% of the equity value of the company when they sell it, says Jones. Of the 3.5%, 15% goes to the US home of the institute, 25% to local directors of the institute, 30% to other graduates, and 30% to mentors, he explains.
The institute is targeting all sorts of technology start-ups and often serves as a feeder to incubators, says Jones. He says the types of companies targeted range from hardware to software firms and include online offerings.
If students fall behind in their assignments, more work is added on, says Jones. "That's what business is like."
Classes run for four hours every Tuesday evening and three lectures are given during the class. Fees are $950 and Jones hopes to run at least two courses a year.
Prospective applicants have the opportunity to meet the team and ask questions at the launch event next Thursday, at the Gordon Institute of Business Science (GIBS). Detailed information is available online.
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