Behind The Money, Episode 37: David S. Rose seeks entrepreneurs for incubator - The Deal Pipeline (SAMPLE CONTENT: NEED AN ID?)
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Behind The Money, Episode 37: David S. Rose seeks entrepreneurs for incubator

Published August 11, 2008 at 5:13 PM
 

David S. Rose, chairman of early-stage investment group New York Angels Inc., gave Tech Confidential a behind-the-scenes tour of his new incubator, or "naturally occurring startup community," as he describes it. Dubbed SparkSpace, the incubator offers tech entrepreneurs a place to hang their servers, along with a range of office services, with rent going for as little as a couple hundred dollars a month to as much as several thousand.
 
The new incubator is located in Manhattan at 30 E. 23rd St., across the street from the Flatiron District's Madison Square Park (where many a tech entrepreneur can be spotted online for a burger at Shake Shack, which boasts a live Web cam). There are different levels of "membership" in SparkSpace. For $200 per month, you get a virtual office with mail, voice-over-Internet-protocol service and space to hold meetings. For $400, you get that plus shared 24-hour access to desk space. For $650, you get a dedicated desk. For $1,500 to $4,000 you get a private office that can house a team. And for even more, you get a shared luxury office space.
 
Still not officially announced and very much under construction, as you can see from our tour, SparkSpace began receiving tenants at the beginning of the year, and more are arriving weekly. Currently, the space is home to a handful of tech startups, plus the New York Software Industry Association and New York Angels. The denizens include 2Tor Inc., an online education firm founded by The Princeton Review founder John Katzman, and PerformLine, an online advertising analytics firm. Also in the building are Rose's own companies--venture capital firm Rose Tech Ventures LLC and Angelsoft LLC, which makes software used by companies pitching angel investors and by angel investors themselves.
 
SparkSpace may offer a temping home for angels and entrepreneurs. The floor reserved for angel investors lives up to its nickname, "Cloud Nine" with lots of natural light and an elegant loft feel to it. More important, perhaps, SparkSpace offers angels the opportunity to "reach out and touch our investments," says Paul Sciabica, executive director of New York Angels, who occupies a small office on a different floor.
 
As for why entrepeneurs might consider opening up shop at SparkSpace, Panjiva Inc. founder and CEO Josh Green puts it best: "It helps get you out of bed in the morning."
 
Membership in SparkSpace is by invitation only, and there is no formal application process. But Rose says that not all the startups in residence are ones he is backing, noting that he's looking for entrepreneurs and startups that will "add to the environment." 
 
What does Rose himself hope to get out of SparkSpace? Rose responds saying that it partly pro-bono and partly just fun but also says, "Ultimately it will all somehow redound to my benefit, either by letting me see the Next Big
Thing at the beginning, or meet a really cool entrepreneur, or let everyone know that I'm walking the walk at the leading edge of entrepreneurship and technology."
-- Mary Kathleen Flynn
 
For more on David Rose see Sept. 2007 Behind the Money video interview
For more on angel investing see June 16 Q&A with Ron Conway from Tech Confidential
For more on New York growing startup community see November 2008 post on Founders Club from Tech Confidential
For more on Panjiva see April 2007 post from Tech Confidential
 
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