This is with reference to a Quora post by Vijay Anand
of The Startup Centre, explaining why they charge money from entrepreneurs: Why does The Startup Centre charge for its Pre-accelerator / Resident Programme?The question to consider (for an entrepreneur) is what is the cost of (charge for) not being in the right place ?
The time for sitting inside your basement (or garage) and tinkering away is gone. Getting the right exposure is really helpful, required and anyone who points to Google or Facebook as being examples of not coming out of an incubator, they were in Palo Alto, surrounded by mentors etc early on, even if that was not a formal incubator setup.
In India in particular, most of us aren't surrounded by startup people in our neighbourhood, facing similar challenges. So being in an incubator or accelerator really helps.
So how much would you pay for such getting access to the right environment? INR 50K (and 1%) for six months isn't that bad, for the exposure of being in the right place surrounded by other smart people. The incubators etc in the US are much more expensive. Other than the $3k/founder/month (for 500 Startups) there is cost of travel to consider, and the cost of stay in US, etc which builds up quite a bit. But even that higher cost is justifiable for what it actually gets you in return (beyond the infrastructure and stuff)
It should never be about the money (or even about having to share equity), but only about does it get to you to the next level or not ?