FAQ

Question: How can VCET help me?
Answer: We’ll help make it easier for you to grow your company, increasing the chance it will succeed. In fact, over 85% of firms completing an incubator program nationally survive, versus 35% who are not members. For details on how we assist companies please see Approach.

Question: What is an incubator?
Answer: It’s a supportive, challenging, flexible, and enabling place for entrepreneurs and emerging companies to learn, grow and succeed. In fact, VCET is one of about 1,400 recognized business incubators nationally that offer low-cost, flexible facilities AND provide substantive business counseling, networking and training resources. VCET capabilities are around building teams, accessing new markets & customers, sourcing appropriate capital and then preparing you for graduation into the “real” world.

Question: What industries are appropriate for VCET?
Answer: We are open to a wide range of industries and ideas. Basically, the only industries we don’t focus on are the 3 R’s – real estate, retail, and restaurants. We remain opportunity obsessed, results driven. Refer to our Portfolio section to see the diversity of clients, sectors and technologies.

Question: I already have a company up and running. Is VCET right for me?
Answer: VCET works with inventors, start-ups, spin-offs and early stage companies with several million in sales. So, yes!

Question: If I am not yet seeking capital or don’t expect to for a while, is VCET right for me?
Answer: You bet. About half of VCET clients do not need outside capital and are attracted to programs and services related to business advice, team building, flexible office space or accessing VCET’s compelling network of partners and supporters.

Question: Does being in the incubator disqualify me from the Seed Capital fund?
Answer: No. It might help, but it might not either. The seed capital fund is a separate program with a different investment process and criteria. Investment decisions are made by a three person investment committee with one member being the VCET President and the other two being unaffiliated new venture professionals. Here is the Investment team.

Question: Will you sign my NDA?
Answer: Nope. As a policy, we do not sign non-disclosure agreements with entrepreneurs or companies seeking our advice or capital. We make best attempts to maintain your information confidentially. Our reputation as valued, trusted advisers and investors is paramount. If there is something that you are uncomfortable sharing, then please exclude from materials and communications with us. It’s your choice.

Question: What does it cost to be a VCET client?
Answer: Membership fees are currently $200 per month which includes one furnished office, shared services and support from the VCET Team – there are no hidden fees or a la carte pricing. As your strategic partner, VCET is also assigned a 1% equity interest per year as part of your incubator membership. As a non-profit incubator offering heavily subsidized services, resources and facilities, we hope that your success will enable us to help the next group of Vermont entrepreneurs down the road. 

Question: Why are the fees so inexpensive?
Answer: Through the incredible and consistent support of US Senator Patrick J. Leahy, U.S. Small Business Administration, HUD, UVM and the State of Vermont, VCET is able to offer heavily subsidized services, great office facilities and capabilities for Vermont’s entrepreneurs and new venture partners. Thanks to all of our volunteers, mentors and partners as well!

Question: Do I have to rent an office?
Answer: No. There is no specific requirement to rent an office. However, the fixed monthly membership fee includes the use of one furnished office and all shared services and programs. About half of VCET clients have remained working from their homes, other Vermont towns and communities or in privately rented offices. 

Question: Can part of my team be in other States or countries?
Answer: Yes. Contemporary technology firms source people, materials and customers globally. We ask that the majority of people, production, R&D and headquarters be located in Vermont. Our partners and VCET want it all here for sure, but priority one is building successful and sustainable companies. If that means a portion of your team and business must be located in other state or another country, then we can consider. Each is a separate decision depending on the unique circumstances and potential public benefit to Vermont or our college and university partners.

Question: Can non-US companies enter the US using the VCET program?
Answer: Absolutely. In the incubator worlds, this is referred to a “soft landing” for a non-US company to seek a toehold into the US or North American markets. VCET has done this for clients in Europe and Canada already. Your participation in our program will be judged on the level of commitment to hiring people, developing technologies and establishing a legitimate based of operations here. If you are just in need of a US post office box, then we are not the place for you.

Question: What's the incubator program application process like?
Answer: First, there is no application fee. Just your time and effort. VCET staff, after working with you for a period of time, makes a recommendation to the VCET Client Selection Committee. This committee is comprised of entrepreneurs, subject matter experts and other new venture creation programs from Champlain College, Norwich University and Middlebury College.

Question: What's the track record for VCET clients thus far?
Answer: Each June we survey all clients served in the program. As of June 2009, 20 firms had been formally helped via the incubator programs. One sold, one demised and 18 are ongoing. They reported 109 jobs and $9.2 million in committed capital during the prior two years. These figures do not include the 8-10 additional firms we substantively assist each month as part of our pipeline development and in fulfilling our statewide non-profit mission.

Question: Do you have incubator client references?
Answer: You bet. Please contact any of them on the Portfolio page or we can make introductions to you in sectors or situations most relevant to your particular stage of development or industry sector.

Question: Is VCET owned by UVM?
Answer: No. UVM is our strategic partner and we lease a facility on UVM’s campus at Farrell Hall. VCET is an independently managed 501 c (3) non-profit governed by an outstanding and committed Board of Directors

Question: When do I graduate and what happens thereafter?
Answer: While there are no hard and fast criteria, we look for firms that have achieved some of these milestones: a bona fide Series A funding, positive cash flow, +/- 3 years membership, or have become disengaged with VCET. Following your graduation or exit from us, we continue to monitor, inform and assist you ongoing as you seek more staff, acquire and serve customers, conduct mergers and acquisitions, or simply need counsel. One of the benefits of VCET having minor ownership in clients is that we care, are available and remain vested in your business’ outcome and your well being as well.

Question: How do I apply to VCET?
Answer: Check out the Approach Section to see if we are the right choice for you. Give us a call or email to see the fit for your stage and kind of company. We often can identify other resources, programs and people that can be a better match. Also, we can only admit a select few into the incubator program given resource constraints, so start the process early with us as there may be a waiting list at times. Upon recommendation of the VCET staff, the Client Selection Committee will review and consider your application into the incubator program. After that, we take it away and get to work for you.

Question: What's the mailing address and phone number?
Answer: Contact information can be found here.

Question: What should I know about VCET and information within this site?
Answer: VCET is not a financial, tax, accounting or investment firm, nor is it a broker-dealer, and does not endorse or recommend the services of any firm or company. The firms or companies with whom it has investment or other relationships or are listed on this website are solely responsible for the information provided by them. VCET shall not be liable for any damages or costs of any type arising out of, or in any way connected with, the use of the VCET website or with any investment or other relationship the user of the VCET website may enter into with any firm or company mentioned or otherwise referred to on the VCET website. 

Question: Does VCET offer co-working space
Answer: YES. VCET offers co-working space in Middlebury, VT. Contact VCET for details. In addition, we are opening VCET@BTV in Summer 2014, which will be a co-working space in the heart of downtown Burlington. Learn more at www.CoWorkBTV.com.

Entrepreneurs Served (last 12 months): 191
Reporting Firms: 27
Next Generation Jobs (current): 204
Revenues (last 12 months): $15.1M
Capital Investment (last 12 months): $12.6M
Students, Interns & Graduate Fellows (lifetime): 32