Silicon Power Tech will provide the incubated companies with a
full range of supporting services which values nearly $1 million .
In exchange for these services, the incubated companies will
give Silicon Power Tech part of their equity.
Silicon Power Tech will generate its investment return from the
growth of the incubated companies.
Contrary to the traditional startup
business model, the incubated startups will have access to the software and
hardware services provided by the in-kind partners and government grants rather
than relying on seed investment to purchase software, equipment and rent office
space. With the design and fabrication support provided by the incubator, the
product development process can be accelerated by 7 to 12 months. In Silicon
Power Tech, there is no need for the incubated companies to invest in fixed
assets, so the startup costs are greatly reduced. Their only focus will be on
team building and product development. As the capital is used directly for
R&D, the startups will be able to retain more equity and more value.