FORTUNE -- As more people have fled to the startup community for the promise of wealth and freedom, a new tier of gatekeepers have emerged. They're called "incubators," and their imprimatur is tantamount to a college degree. It's like getting a degree from Harvard or MIT, explains David Cohen, the co-founder of TechStars, one of the more successful incubators in the country.
By ceding 6% of their company, startups get an investor, credibility in the startup community, and communion with other founders who are going through the same masochistic slog as they are. The incubators, meanwhile, get a set number of entrepreneurs to mentor and perhaps turn into successful businesses. After a few months of grooming, mentor and founder can then summon hundreds of people to watch their company's official introduction to society.
Techno-types have a name for this strange ritual: Demo Day. It's a highly structured and ritualized tradition with a set form, language, and hierarchy. The routine is universal: After months of isolation, sleepless nights, and marathon coding sessions, the time finally arrives for the young startups to reemerge and show how they've matured. More
A new wave of social networks aims to shrink the number of people in your circle.
The latest web fad? Private social networks. A growing number of services let users connect in smaller groups often around specific events. With Path, for example, you're only allowed 50 friends; the goal is to share more intimate life details -- kids' pics, a tasty breakfast -- with a more controlled group of people MOREJessi Hempel, writer - Mar 11, 2011 5:00 AM ET
|Don't fight it. Bitcoin has a bright future|
|"The Hobbit" dispute sparks lawsuit|
|Teen millionaire helping Yahoo become cool again|
|Five things you didn't know about Bernie Madoff's epic scam|
|Stocks falter as budget deal raises taper risk|