Xconomy’s Wade Roush writes today about the closing of Chris Hurley’s Revolutionary Angels, a for-profit venture with the idea of charging 100 startups $4,995 apiece to enter a business plan competition that would provide the first-place finisher with a $250,000 “angel investment” ($50,000 for second place). The winners would also have to give up 10 percent and 2 percent, respectively, of their companies.
Wait a minute. Chris Hurley? Isn’t he one of the founding members here at Bizplancompetitions? And my own son, no less?
Happy to discover that there are two Chris Hurleys, and to report that they are not related. The most notoriety my Chris Hurley, a 20-year old college junior, has received to date was a recent mention in NYTimes.com reporting on his purchase of a close-to-campus home that provided him with an $8,000 federal tax credit.
The failure of the other Chris Hurley’s venture, Revolutionary Angels, is not surprising. And it is no doubt a good thing. This issue was covered nicely by Lora Kolodny back in November 2009 on her New York Times blog.
We despise the idea of having to pay big dollars to pitch to angel investors, and even more so the idea of paying big dollars to compete in a business plan competition. Even the couple of hundred dollars charged as an entry/workshop fee by some non-profit competitions deserves extra scrutiny.
Many business plan competitions charge absolutely nothing to any eligible participant. That’s really the way it should be.View all posts by joeh → This entry was posted in Featured Posts and tagged featured. Bookmark the permalink.