Montreal-based Execution Labs has raised $1.4 million from venture capitalists to launch a specific type of accelerator in Canada.
The startup plans to offer what it describes as a "first-of-its-kind hybrid game incubator and go-to-market accelerator." The company has Jason Della Rocca, Alexandre Pelletier-Normand, and Keith Katz at the helm. Their backgrounds include stints at the International Game Developers Association and Gameloft.
Teams selected by Execution Labs will receive seed funding, office space, development tools, and mentorship. Once a game is ready to launch, teams will be provided with marketing money and support for customer acquisition and live operations. The idea, Execution says, is "to gather enough market traction that a team will then be able to go it alone and form their own studio." Execution Labs, in exchange, receives an equity and revenue share.
Specifically, Execution Labs outlines four phases: Selection, Development Lab (the incubation), Go-To-Market (the acceleration), and Spin Out. The fourth phase is the component of the incubator that differentiates itself from others in a meaningful way.
A lot of criticism toward today's accelerators is that graduating startups are not well prepared for the "real world." This spin out phase should address that issue.
Execution Labs says it will give participating teams $2,000 per team member per month, as well as a minimum of $10,000 for marketing and player acquisition. As a result, the incubator takes a steep 30% cut of revenues, which eventually drops to 1%. It's a semi-complicated formula that the company details on its website. Execution Labs also takes a minimum of 10% equity and up to 25%, depending on how long a team spends in the program.
The incubator is accepting applications now within Canada.