According to a new report from TechCrunch, 500 Startups is expanding beyond its VC fund and accelerator roots, introducing a new startup incubator, 500 Labs.
500 Labs hopes to bring entrepreneurs and developers in residence, providing them with salaries and resources to explore new ideas until they find one that hits – similar to Betaworks and Playground in the U.S.
However, according to the TechCrunch report, 500 Labs will focus on what it calls “remote locations” like Waterloo and Toronto.
500 Labs will also pair potential candidates based upon their qualifications – matching developers with non-technical leads, for example – and expects around 10 ongoing projects at any time, with 3 to 4 potentially being spun into their own companies if they exhibit high growth and potential.
500 Startups says that founders will have double-digit point ownership of companies spun out of 500 Labs, but the overall ownership structure is still being worked out.