] HipMojo.com » An Incubator That Gives Back 30-50% of the Investment? Believe It.

Interesting to see people still taking a crack at the incubator model.  I’m not sure incubators work, mainly because people are complex creatures and egos of entrepreneurs are usually too big to fit under one roof…

But, I think I can make it work, not because I am special or anything… but because in Montreal, we can benefit from investment tax credits that give back 30-50% for IT work.

In fact, this is why venerable investment bank Morgan Stanley is investing up to $200 million and creating 500 jobs in 5 years in Montreal.

That’s right: we have some of the world’s best tax credits, which is great, because it makes up for the otherwise so-so investing community and general conservative mindset. What exasperates matters is that most successful entrepreneurs seem to get very risk averse after becoming successful.

After my old company got acquired, I could have retired… not because I had a big payoff (I was a minority shareholder), but because Montreal has such a low cost of living environment.

I joked that I was rich [by Montreal’s standards] but then I started WatchMojo.com and I no longer am. In all seriousness, however… Those tax credits are nationwide, but Montreal offers a lot more:

- a low cost of living environment,
- a talented pool of employees,
- multi-lingual employees that can chase global opportunities from the get-go

Tack on the fact that R&D and IT tax credits give back 30-50% back to investors right off the bat, I think an incubator could work here.

This is something I have talked to one group about… but I am not sure if people realize how much of an opportunity this is.

Anyway, how about this: I’ll also offer our audience and reach as sandboxes to promote these products, services and applications.  We reach 99% of the online video universe right now in the US.  No one can match that, as far as I can tell.

And, if that’s not enough, I will even handle finding a business model for them.
Any takers to send me a check to get such an incubator off the ground?

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Posted By: Ashkan Karbasfrooshan | May 9th

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