Launches application process through AngelList. Until now, companies needed a recommendation from a 500 Startups partner to join the program. McClure says the accelerator program previously avoided an application process because of the hassle associated with sorting through to get the good candidates. However, he says using AngelList in addition to its own network of founders and mentors should fix that problem.
We realized we were missing out on a lot of potentially good startups that weren’t connected to the Valley.
McClure expects about 500 startups to apply for the program’s fifth batch of companies but only plans to choose five to ten. 500 Startups offers entrance at 3-4 percent equity for any company that’s previously raised at least $250,000. (The firm says a typical accelerator pledges $50,000 for five percent equity and an option for up to $200,000 in future rounds.)