Written by Ben Koo | 27 March 2009

Yesterday I blogged about how the new rage seems to be startup seed programs. Not even a day later, another program was announced. This time around the lucky city was Austin (which I haven't been to, but put on a pedestal). Below are some details from TC.

"As with other similar programs, Capital Factory offers entrepreneurs a modest amount of funding in exchange for equity (the program is offering ‘up to $20,000′ in exchange for 5% of each startup). Capital Factory is also advertising ‘$20,000 in free stuff‘, which includes server usage, PR support, and legal help. But the real value from these programs comes from their associated mentors, who work with the startups to help them get on their feet, and help tap into their established networks of VCs and other entrepreneurs. The ten week long program culminates in a ‘Demo Day’ during which each startup will pitch their wares to VCs, press, and other entrepreneurs." As I said yesterday, I am fan of these programs and am tempted to potentially explore one of these programs sometime in the coming years. Venturebeat did a great interview piece, with Joshua Baer on Capital Factory, that is a great read. Time will tell if these programs churn out billion dollar companies and valuable technologies, but for now its a great avenue that will hopefully innovation and entrepreneurship. "First-time entrepreneurs want to ask questions of successful entrepreneurs. Successful entrepreneurs like investing in young entrepreneurs. Entrepreneurs of all kinds thrive on each other’s passion. At its core, we’re doing this because we think it will be really fun and rewarding for everyone involved."