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Equity

Newchip's bankruptcy is a cautionary tale for founders

May 15, 2024
Haje Kamps, an expert in accelerators and startups, joins the podcast to discuss Newchip's bankruptcy and its impact on founders. They explore the aftermath of failed accelerator programs, the risks faced by startups, and the importance of understanding program terms. The conversation highlights the broader accelerator landscape and the caution founders need when selecting programs.
22:52

Episode guests

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Quick takeaways

  • Founders should be cautious when joining accelerators and review equity agreements carefully.
  • Incompetence in accelerator management can have detrimental effects on startup cap tables.

Deep dives

Overview of NUCHIP Accelerator Bankruptcy

The episode delves into the bankruptcy of the NUCHIP accelerator in Austin, Texas. NUCHIP went bankrupt after startup founders granted warrants to buy shares in their companies. Some founders paid up to $15,000 to join the accelerator, expecting benefits like connections to investors. However, the accelerator faced internal turmoil, including leadership issues that hindered its success.

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