Korva is a scroll of the internet’s best ideas.
Talked a founder out of Antler
Ali Hussein started Tabs right after leaving Latch, and Antler had him signed up to join the residency. Then Primary, his first investor, came through with a term sheet. After a conversation, he was told he had to take it, because the offer was much better for where the business stood and what it had developed.
Tabs has since become one of the hottest and fastest-growing companies in New York and has raised a ton of money. Hussein still emails and talks with the Antler team, and he refers founders to them.
How does a residency differ from an accelerator?
Antler was founded in 2017 in Singapore by Magnus Grimeland. Its residency programs gather individuals, often before they have a company, and help them find co-founders and form teams. Accelerators such as Y Combinator, started in 2005, typically take companies that have already formed. Both usually trade a small investment for equity.
Why might a founder skip a program for a term sheet?
A program takes months of a founder's time, while a term sheet delivers capital and an investor relationship right away. Accelerators usually take equity in exchange for investment and programming, so the two offers can be compared on valuation, cash, and what comes with each. A lead investor with a term sheet also signals that someone has already done the diligence. Many founders have weighed the same trade between a structured program and a direct investment.
More from Inside Startup Funding
