A real estate investor and tech executive have come together to create a new business incubator model for young tech companies, reports The Dallas Morning News.
Their Tech Multiplier is the latest in a string of new offerings of office space, funding and mentoring for entrepreneurs this year, a trend that points to the improving economy and renewed focus on entrepreneurs to help spur economic growth. Yet Tech Multiplier already has drawn criticism for its high equity stakes and business model.
Bill Cawley, owner of the Cawley Partners real estate investment firm, and Rohit Mehrotra, founder of Paranet Solutions, started Tech Multiplier this fall. It will provide mentoring, lease furnished office space in exchange for stock in the tenant company and invest up to $1 million in companies with innovative technologies, especially mobile applications, social networking and cloud computing.
Mehrotra said that he, Cawley and other angel investors have committed up to $5 million in capital for Tech Multiplier. They also want to share deal referrals and funding with similar groups in the San Francisco area, he said.
Screenshot from Tech Multiplier