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		<title>Rumor Roundup: International Defoundered Man of Mystery, Plus Alexis Ohanian Wrote a Book</title>

		<comments>http://betabeat.com/2013/03/rumor-roundup-international-defoundered-man-of-mystery-plus-alexis-ohanian-wrote-a-book/#comments</comments>
		<pubDate>Fri, 08 Mar 2013 17:15:02 -0400</pubDate>
					<link>http://betabeat.com/2013/03/rumor-roundup-international-defoundered-man-of-mystery-plus-alexis-ohanian-wrote-a-book/</link>
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		<description><![CDATA[<p><div id="attachment_81430" class="wp-caption alignleft" style="width: 242px"><a href="http://nyobetabeat.files.wordpress.com/2013/03/placeholder.png"><img class="size-full wp-image-81430" alt="placeholder" src="http://nyobetabeat.files.wordpress.com/2013/03/placeholder.png" width="232" height="350" /></a><p class="wp-caption-text">(Photo: Amazon)</p></div></p>
<p><strong><del>Front Page</del> Printed Pages of the Internet </strong>Just before taking stage at SXSW to talk his <a href="http://schedule.sxsw.com/2013/events/event_IAP16012">crowdfunded Internet 2012 tour</a>, <strong>Alexis Ohanian</strong> emailed out a link to his <a href="http://www.amazon.com/gp/product/1455520020?ie=UTF8&amp;amp;camp=213733&amp;amp;creative=393185&amp;amp;creativeASIN=1455520020&amp;amp;linkCode=shr&amp;amp;tag=thinyouvere07-20&amp;amp;qid=1362364308&amp;amp;sr=8-1&amp;amp;keywords=without+their+permission">new book</a>, <em>Without Their Permission: How the 21st Century Will Be Made, Not Managed</em>.</p>
<p>Since you asked, Mr. Ohanian, we dig the cover, but "without their permission," sounds a little iffy in the context of Reddit's Creepshot scandal, no?<!--more--></p>
<p>Last week, we wondered when Mr. Ohanian was <a href="http://betabeat.com/2013/03/alexis-ohanian-running-for-political-office-brit-morin/">running for office already</a>. “Alas no,” he emailed back. “I'm not going to rule anything out but right now I'm having too much fun (and impact) from my place in the private sector.” However, as the <a href="http://theyec.org/">Young Entrepreneur Council</a> founder <strong>Scott Gerber</strong> <a href="https://twitter.com/askgerber/status/307994442139308032/photo/1">pointed out</a>, Mr. Ohanian does happen to own the domain name ohanian2013.com.</p>
<p><strong>Just checking in</strong> 525,600 minutes. How do you measure a year in the life of a (defoundered) man? Earlier this week, on the anniversary of his abrupt departure from Foursquare, cofounder <strong>Naveen Selvadurai</strong> posted a recap of the last 12 months. Don't expect to learn much about <a href="http://betabeat.com/2012/05/naveen-selvadurai-next-project-quantified-self-05152012/">what he's been working on</a>, though. Think more in daylights, in sunsets, in midnights and cups of coffee.</p>
<p>Mr. Selvadurai lost the founder 15; he traveled; he saw his family and friends; he traveled some more; he read books; he went to Disney and rode Space Mountain many times; he learned to drive stick; he went to the Olympics. "I always kept saying 'year 30' wouldn’t be such a big deal and that it’s just like any other. it turned out to be so much more and i’m grateful for that," he reflected.</p>
<p>Oh, but he might have picked up a bit of a gloomy streak, too:</p>
<blockquote class="twitter-tweet"><p>this is how the war will start - "ohio man charged with shooting robot" <a title="http://singularityhub.com/2013/03/04/ohio-man-charged-with-shooting-robot/" href="http://t.co/8glHmT73Zp">singularityhub.com/2013/03/04/ohi…</a></p>
<p>— naveen (@naveen) <a href="https://twitter.com/naveen/status/309415929870180352">March 6, 2013</a></p></blockquote>
<p><div id="attachment_81456" class="wp-caption alignleft" style="width: 190px"><a href="http://nyobetabeat.files.wordpress.com/2013/03/screen-shot-2013-03-08-at-5-10-09-pm.png"><img class=" wp-image-81456" alt="Screen shot 2013-03-08 at 5.10.09 PM" src="http://nyobetabeat.files.wordpress.com/2013/03/screen-shot-2013-03-08-at-5-10-09-pm.png?w=300" width="180" height="172" /></a><p class="wp-caption-text">(Photo: Instagram/Dens)</p></div></p>
<p><strong>So (proto)typical </strong>Google Glasses are now just popping up everywhere, it seems. The latest sighting comes via Digg community manager <strong>Veronica De Souza</strong>: "SPOTTED: A skater bro wearing google glass in bedstuy. Who are you?" she <a href="https://twitter.com/HeyVeronica/status/308030739138621440">tweeted</a>. Betebeat welcomes any intel as to the identity of this mystery man, so we can pester him until he lets us try his specs on.</p>
<p>Maybe <strong>Dennis Crowley</strong> knows the guy. The Foursquare cofounder recently, "<a href="http://instagram.com/p/WhxTMamvnH/">lost my Google Glass virginity</a>."</p>
<p><div id="attachment_81423" class="wp-caption alignleft" style="width: 310px"><a href="http://instagram.com/p/Wk9JOzQffM/"><img class="size-medium wp-image-81423" alt="Screen shot 2013-03-08 at 4.05.33 PM" src="http://nyobetabeat.files.wordpress.com/2013/03/screen-shot-2013-03-08-at-4-05-33-pm.png?w=300" width="300" height="293" /></a><p class="wp-caption-text">(Photo: Instagram/Fred Benenson)</p></div></p>
<p><b id="internal-source-marker_0.9512687372043729">Spotted! </b>Our friends at Quora--the <a href="http://betabeat.com/2012/08/pitiful-silicon-valley-resident-asks-quora-to-explain-the-outside-world/">erudite agoraphobe’s</a> answer to Yahoo! Answers--never got the memo that print was dead. Thus earlier this year, the site opted to publish a 441-page hardcover book called “The Best of Quora,” featuring 131 primers. <a href="http://www.forbes.com/sites/georgeanders/2013/01/14/quoras-new-book-of-wisdom-131-tips-on-spiders-steve-jobs-parenting-and-chinese-prison/">Forbes </a>called it a “fascinating, enchanting, exasperating book,” and wondered if the inquiring minds of Quora were “too clever” for their own good.</p>
<p>Author <strong><a href="http://instagram.com/p/WlSgdrpdMb/">Clive Thompson</a></strong> and Kickstarter’s <strong><a href="http://instagram.com/p/Wk9JOzQffM/">Fred Benenson</a></strong> got to thumb through the pages and see for themselves when they spotted a copy “in the wild” at Lil Frankie’s Pizza in the East Village. Mr. Thompson said on Instagram that he received an advanced copy this week. As <strong>Bill Couch</strong>, a front-end product engineer at Twitter explained in <a href="http://instagram.com/p/WlSgdrpdMb/">the comments,</a> “[Quora] issued them as gifts to the authors of those answers at the end of last year, then provided it as a PDF online.”</p>
<p>Guess the <a href="http://www.quora.com/How-is-BetaBeat-able-to-out-scoop-TechCrunch-in-NYC">question about Betabeat</a> didn’t make the cut.</p>
<p><strong>:( </strong>Guys, we think Tumblr really hurt Shelby.tv cofounder <strong>Reece Pacheco</strong> feelings. He recently published a long, sad blog post <a href="http://reecepacheco.com/post/44719403406/tumblr-i-love-you-but-youre-bringing-me-down">announcing</a>, "Tumblr I Love You, But You're Bringing Me Down." Nothing says heartache like LCD Soundsystem! So what set Mr. Pacheco off? He logged into Tumblr the other day, as he does regularly, and found himself subjected to a laborious, drawn-out attempt to get him to follow more blogs. Then, he was given a few hovering tool tips--on a service he's been using for <em>years</em>.</p>
<p>He did not like this!</p>
<blockquote><p>Thing is, I wouldn’t be so frustrated with you, Tumblr, if I didn’t love the platform so much. If you were just <a href="http://www.facebook.com/reecepacheco" target="_blank">some other social network</a>, I’d say “Do whatever you want. I don’t care. Your only value is your scale.”</p>
<p>But that’s not you, so don’t treat me like some number. You know I’m active. You know I’m a creator more than a reblogger. Treat me that way and show me some added benefit, rather than just trying to get more mindless engagement out of me.</p></blockquote>
<p>Sorry, Reece--those revenue targets aren't gonna hit themselves.</p>
<p><strong>Mmm, cake </strong>Happy birthday to GroupMe cofounder <strong>Steve Martocci</strong>, who got quite the gift in celebration. There's <a href="https://vine.co/v/bHTaw9ULUm1">a Vine of the festivities</a>, but here's a teaser:</p>
<p style="text-align:left;"><a href="http://nyobetabeat.files.wordpress.com/2013/03/screen-shot-2013-03-08-at-3-04-19-pm.jpg"><img class="wp-image-81418 aligncenter" alt="Screen Shot 2013-03-08 at 3.04.19 PM" src="http://nyobetabeat.files.wordpress.com/2013/03/screen-shot-2013-03-08-at-3-04-19-pm.jpg" width="286" height="301" /></a>Looks like a party, alright!</p>
<p style="text-align:left;"><strong>High fashion </strong>Huffpo cofounder <strong>Kenny Lerer</strong> is well known around Silicon Alley as an investor. But did anyone know he is, as his son <strong>Ben Lerer</strong> <a href="https://twitter.com/BenjLerer/status/309456057640558592">put it on Twitter</a>, "fcking fashionable"? Mr. Lerer the Elder recently appeared in <a href="http://www.nytimes.com/2013/03/07/fashion/power-beauty-salons-become-a-networking-opportunity.html?pagewanted=all&amp;_r=0">a <em>New York Times </em>profile</a> of <strong>Laurent DeLouya</strong>, "the amiable proprietor of a hair salon that over 50 years has amassed a following that is kind of a cultural Core Club." Papa Lerer told the <em>Times </em>he'd "walk over hot coals for Laurent,” and apparently Mr. DeLouya performed baby Ben's first haircut at age 3.</p>
<p style="text-align:left;">We yearn to someday achieve that kind of rapport with a stylist.</p>
<p style="text-align:left;"><strong>User #279 </strong>Your user number can be a figure of pride among the tech set. If it's low enough it signals that you're an early adopter, and makes you feel cool, which is kinda sad if you think about it cuz like, <em>look at your life</em>.</p>
<p style="text-align:left;">"I'm User No. 279," <a href="https://twitter.com/nickbilton/status/305391622227623936">humblebragged</a> <em>New York Times</em> tech writer <strong>Nick Bilton</strong> in a recent Twitter back and forth. "I got @<strong>dens</strong> drunk and [sic] <strong>Nick Denton's</strong> house and made him give me a beta account."</p>
<p style="text-align:left;">Whatever works.</p>
]]></description>
		<content:encoded><![CDATA[<p><div id="attachment_81430" class="wp-caption alignleft" style="width: 242px"><a href="http://nyobetabeat.files.wordpress.com/2013/03/placeholder.png"><img class="size-full wp-image-81430" alt="placeholder" src="http://nyobetabeat.files.wordpress.com/2013/03/placeholder.png" width="232" height="350" /></a><p class="wp-caption-text">(Photo: Amazon)</p></div></p>
<p><strong><del>Front Page</del> Printed Pages of the Internet </strong>Just before taking stage at SXSW to talk his <a href="http://schedule.sxsw.com/2013/events/event_IAP16012">crowdfunded Internet 2012 tour</a>, <strong>Alexis Ohanian</strong> emailed out a link to his <a href="http://www.amazon.com/gp/product/1455520020?ie=UTF8&amp;amp;camp=213733&amp;amp;creative=393185&amp;amp;creativeASIN=1455520020&amp;amp;linkCode=shr&amp;amp;tag=thinyouvere07-20&amp;amp;qid=1362364308&amp;amp;sr=8-1&amp;amp;keywords=without+their+permission">new book</a>, <em>Without Their Permission: How the 21st Century Will Be Made, Not Managed</em>.</p>
<p>Since you asked, Mr. Ohanian, we dig the cover, but "without their permission," sounds a little iffy in the context of Reddit's Creepshot scandal, no?<!--more--></p>
<p>Last week, we wondered when Mr. Ohanian was <a href="http://betabeat.com/2013/03/alexis-ohanian-running-for-political-office-brit-morin/">running for office already</a>. “Alas no,” he emailed back. “I'm not going to rule anything out but right now I'm having too much fun (and impact) from my place in the private sector.” However, as the <a href="http://theyec.org/">Young Entrepreneur Council</a> founder <strong>Scott Gerber</strong> <a href="https://twitter.com/askgerber/status/307994442139308032/photo/1">pointed out</a>, Mr. Ohanian does happen to own the domain name ohanian2013.com.</p>
<p><strong>Just checking in</strong> 525,600 minutes. How do you measure a year in the life of a (defoundered) man? Earlier this week, on the anniversary of his abrupt departure from Foursquare, cofounder <strong>Naveen Selvadurai</strong> posted a recap of the last 12 months. Don't expect to learn much about <a href="http://betabeat.com/2012/05/naveen-selvadurai-next-project-quantified-self-05152012/">what he's been working on</a>, though. Think more in daylights, in sunsets, in midnights and cups of coffee.</p>
<p>Mr. Selvadurai lost the founder 15; he traveled; he saw his family and friends; he traveled some more; he read books; he went to Disney and rode Space Mountain many times; he learned to drive stick; he went to the Olympics. "I always kept saying 'year 30' wouldn’t be such a big deal and that it’s just like any other. it turned out to be so much more and i’m grateful for that," he reflected.</p>
<p>Oh, but he might have picked up a bit of a gloomy streak, too:</p>
<blockquote class="twitter-tweet"><p>this is how the war will start - "ohio man charged with shooting robot" <a title="http://singularityhub.com/2013/03/04/ohio-man-charged-with-shooting-robot/" href="http://t.co/8glHmT73Zp">singularityhub.com/2013/03/04/ohi…</a></p>
<p>— naveen (@naveen) <a href="https://twitter.com/naveen/status/309415929870180352">March 6, 2013</a></p></blockquote>
<p><div id="attachment_81456" class="wp-caption alignleft" style="width: 190px"><a href="http://nyobetabeat.files.wordpress.com/2013/03/screen-shot-2013-03-08-at-5-10-09-pm.png"><img class=" wp-image-81456" alt="Screen shot 2013-03-08 at 5.10.09 PM" src="http://nyobetabeat.files.wordpress.com/2013/03/screen-shot-2013-03-08-at-5-10-09-pm.png?w=300" width="180" height="172" /></a><p class="wp-caption-text">(Photo: Instagram/Dens)</p></div></p>
<p><strong>So (proto)typical </strong>Google Glasses are now just popping up everywhere, it seems. The latest sighting comes via Digg community manager <strong>Veronica De Souza</strong>: "SPOTTED: A skater bro wearing google glass in bedstuy. Who are you?" she <a href="https://twitter.com/HeyVeronica/status/308030739138621440">tweeted</a>. Betebeat welcomes any intel as to the identity of this mystery man, so we can pester him until he lets us try his specs on.</p>
<p>Maybe <strong>Dennis Crowley</strong> knows the guy. The Foursquare cofounder recently, "<a href="http://instagram.com/p/WhxTMamvnH/">lost my Google Glass virginity</a>."</p>
<p><div id="attachment_81423" class="wp-caption alignleft" style="width: 310px"><a href="http://instagram.com/p/Wk9JOzQffM/"><img class="size-medium wp-image-81423" alt="Screen shot 2013-03-08 at 4.05.33 PM" src="http://nyobetabeat.files.wordpress.com/2013/03/screen-shot-2013-03-08-at-4-05-33-pm.png?w=300" width="300" height="293" /></a><p class="wp-caption-text">(Photo: Instagram/Fred Benenson)</p></div></p>
<p><b id="internal-source-marker_0.9512687372043729">Spotted! </b>Our friends at Quora--the <a href="http://betabeat.com/2012/08/pitiful-silicon-valley-resident-asks-quora-to-explain-the-outside-world/">erudite agoraphobe’s</a> answer to Yahoo! Answers--never got the memo that print was dead. Thus earlier this year, the site opted to publish a 441-page hardcover book called “The Best of Quora,” featuring 131 primers. <a href="http://www.forbes.com/sites/georgeanders/2013/01/14/quoras-new-book-of-wisdom-131-tips-on-spiders-steve-jobs-parenting-and-chinese-prison/">Forbes </a>called it a “fascinating, enchanting, exasperating book,” and wondered if the inquiring minds of Quora were “too clever” for their own good.</p>
<p>Author <strong><a href="http://instagram.com/p/WlSgdrpdMb/">Clive Thompson</a></strong> and Kickstarter’s <strong><a href="http://instagram.com/p/Wk9JOzQffM/">Fred Benenson</a></strong> got to thumb through the pages and see for themselves when they spotted a copy “in the wild” at Lil Frankie’s Pizza in the East Village. Mr. Thompson said on Instagram that he received an advanced copy this week. As <strong>Bill Couch</strong>, a front-end product engineer at Twitter explained in <a href="http://instagram.com/p/WlSgdrpdMb/">the comments,</a> “[Quora] issued them as gifts to the authors of those answers at the end of last year, then provided it as a PDF online.”</p>
<p>Guess the <a href="http://www.quora.com/How-is-BetaBeat-able-to-out-scoop-TechCrunch-in-NYC">question about Betabeat</a> didn’t make the cut.</p>
<p><strong>:( </strong>Guys, we think Tumblr really hurt Shelby.tv cofounder <strong>Reece Pacheco</strong> feelings. He recently published a long, sad blog post <a href="http://reecepacheco.com/post/44719403406/tumblr-i-love-you-but-youre-bringing-me-down">announcing</a>, "Tumblr I Love You, But You're Bringing Me Down." Nothing says heartache like LCD Soundsystem! So what set Mr. Pacheco off? He logged into Tumblr the other day, as he does regularly, and found himself subjected to a laborious, drawn-out attempt to get him to follow more blogs. Then, he was given a few hovering tool tips--on a service he's been using for <em>years</em>.</p>
<p>He did not like this!</p>
<blockquote><p>Thing is, I wouldn’t be so frustrated with you, Tumblr, if I didn’t love the platform so much. If you were just <a href="http://www.facebook.com/reecepacheco" target="_blank">some other social network</a>, I’d say “Do whatever you want. I don’t care. Your only value is your scale.”</p>
<p>But that’s not you, so don’t treat me like some number. You know I’m active. You know I’m a creator more than a reblogger. Treat me that way and show me some added benefit, rather than just trying to get more mindless engagement out of me.</p></blockquote>
<p>Sorry, Reece--those revenue targets aren't gonna hit themselves.</p>
<p><strong>Mmm, cake </strong>Happy birthday to GroupMe cofounder <strong>Steve Martocci</strong>, who got quite the gift in celebration. There's <a href="https://vine.co/v/bHTaw9ULUm1">a Vine of the festivities</a>, but here's a teaser:</p>
<p style="text-align:left;"><a href="http://nyobetabeat.files.wordpress.com/2013/03/screen-shot-2013-03-08-at-3-04-19-pm.jpg"><img class="wp-image-81418 aligncenter" alt="Screen Shot 2013-03-08 at 3.04.19 PM" src="http://nyobetabeat.files.wordpress.com/2013/03/screen-shot-2013-03-08-at-3-04-19-pm.jpg" width="286" height="301" /></a>Looks like a party, alright!</p>
<p style="text-align:left;"><strong>High fashion </strong>Huffpo cofounder <strong>Kenny Lerer</strong> is well known around Silicon Alley as an investor. But did anyone know he is, as his son <strong>Ben Lerer</strong> <a href="https://twitter.com/BenjLerer/status/309456057640558592">put it on Twitter</a>, "fcking fashionable"? Mr. Lerer the Elder recently appeared in <a href="http://www.nytimes.com/2013/03/07/fashion/power-beauty-salons-become-a-networking-opportunity.html?pagewanted=all&amp;_r=0">a <em>New York Times </em>profile</a> of <strong>Laurent DeLouya</strong>, "the amiable proprietor of a hair salon that over 50 years has amassed a following that is kind of a cultural Core Club." Papa Lerer told the <em>Times </em>he'd "walk over hot coals for Laurent,” and apparently Mr. DeLouya performed baby Ben's first haircut at age 3.</p>
<p style="text-align:left;">We yearn to someday achieve that kind of rapport with a stylist.</p>
<p style="text-align:left;"><strong>User #279 </strong>Your user number can be a figure of pride among the tech set. If it's low enough it signals that you're an early adopter, and makes you feel cool, which is kinda sad if you think about it cuz like, <em>look at your life</em>.</p>
<p style="text-align:left;">"I'm User No. 279," <a href="https://twitter.com/nickbilton/status/305391622227623936">humblebragged</a> <em>New York Times</em> tech writer <strong>Nick Bilton</strong> in a recent Twitter back and forth. "I got @<strong>dens</strong> drunk and [sic] <strong>Nick Denton's</strong> house and made him give me a beta account."</p>
<p style="text-align:left;">Whatever works.</p>
]]></content:encoded>
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		<title>White-House-Approved Gen Y Seed Fund Helps Entrepreneurs from the 99 Percent With Student Loans</title>

		<comments>http://betabeat.com/2011/10/white-house-approved-gen-y-seed-fund-helps-entrepreneurs-from-the-99-percent-with-student-loans/#comments</comments>
		<pubDate>Thu, 27 Oct 2011 12:55:30 -0400</pubDate>
					<link>http://betabeat.com/2011/10/white-house-approved-gen-y-seed-fund-helps-entrepreneurs-from-the-99-percent-with-student-loans/</link>
			<dc:creator>Nitasha Tiku</dc:creator>
				
		<guid isPermaLink="false">http://www.betabeat.com/?p=20261</guid>
		<description><![CDATA[<p><div id="attachment_20349" class="wp-caption alignleft" style="width: 201px"><img class="size-full wp-image-20349 " title="scottgabout" src="http://nyobetabeat.files.wordpress.com/2011/10/scottgabout.jpg" alt="" width="191" height="191" /><p class="wp-caption-text">Mr. Gerber.</p></div></p>
<p>Yesterday a new $10 million early stage seed investment fund called <a href="http://genycap.com/">Gen Y Capital Partners</a> launched out of its home base in New York City. </p>
<p>Its no coincidence that the White House's announcement about <a href="http://www.sba.gov/startupamerica/student-startup-plan">easing student loan burdens for entrepreneurs</a> came on the same day. After all part of Gen Y Capital's business plan, which gets <a href="http://www.whitehouse.gov/blog/2011/10/26/reducing-student-loan-burdens-america-s-entrepreneurs">name-checked in the White House release</a>, leverages the recently-reformed Income-Based Repayment plan to help startup founders pay off their student loans. Yup, you read that right. Pay off, not defer. </p>
<p>Betabeat talked to Gen Y founder Scott Gerber, author of <em>Never Get a "Real" Job</em> and founder of the non-profit Young Entrepreneur Council, about how student loans play into entrepreneurship and why Gen Y can help the 99 percent.<br />
<!--more--> </p>
<p>Mr. Gerber said the notion for the for-profit fund, which is financed by private and institutional investors, started a year ago.  "The YEC and I have literally spoken to thousands of 20-something college students asking them what were the barriers to entries. The top three were: college student debt, the fact that they were being turned into boomerangs--ended up going home and living on their parents, which is very unsupportive and that they had no access to capital or real mentorship." Removing those barriers, he reasoned, would make a capital infusion more effective. </p>
<p>Income-based Repayment, or IBR, is a federal program that anyone can apply to that defers or lessens student loans depending on income level. "So if the founders we select subscribe to IBR and still have student loan debt, we will basically pay down the remainder of the debts for three years until they hit zero. That way they remove them from the equation and they can fully concentrate," said Mr. Gerber. "We’re actually making the payments. And that’s not part of the equity investment that we make, that’s a service we offer to our founders." </p>
<p>It will likely take Gen Y three years to deploy the capital. Mr. Gerber said the average investment will be between $15,000 and $50,000, but "in very select opportunities," the fund may invest up to $250,000. In addition, the founders selected by Gen Y will have access to YEC members, which includes the founders of Reddit, Mint, and Living Social, for mentorship and potential co-investment alongside Gen Y. Mentors are divided into verticals so it depends on the interest of the members as to whether they want to invest. </p>
<p>The association with President Obama started because for the past several months YEC has been championing something called the Youth Entrepreneurship Act on both the Hill and in White House meetings. "It would take IBR to a totally other level, which is student debt forgiveness and deferment, which would theoretically would be the absolute next step of how IBR would work if we had our way!," Mr. Gerber enthused. </p>
<p>The public-private partnership only extends to IBR, there is no government money in Gen Y's $10 million fund. The <a href="http://www.sba.gov/startupamerica/student-startup-plan">new IBR reforms</a> let students making $20,000 or less defer payments until they get to a higher revenue grade. "So for startups that's amazing because it allows them to have more operating and startup capital, because the money they do have is not just being dumped into loan repayments." As your income rises, payments fluctuate up to a cap of 10 percent of income. The reform works by extending your federal student loan from 10 years to 20 years. Anything after that gets forgiven entirely, explained Mr. Gerber. </p>
<p>Where does the 99 percent come in? "We think that folks like Y Combinator and TechStars do an incredible job of getting the best most sophisticated tech elite out there. We don't just want to do a third version of that. So instead we're going after companies that are certainly enabled by tech or assisted by tech, but are not straight-up tech businesses," he explained. Rather, Gen Y would look for businesses that are scaleable and provide value. "But they are companies that would be overlooked by incubators or startup accelerators." As an example of a potential Gen Y contender, Mr. Gerber offered a customizable granola bar company where items would be ordered through a website using a process the founders built. </p>
<p>We're not sure whether the Occupy Wall Street movement would be sold on Mr. Gerber's "build a job to keep a job" motto. But long before protesters started camping out in Zuccotti Park, Mr. Gerber has been a talking head on cable news discussing unemployment and underemployment rates for young people in America. </p>
<p>"I believe personally that in this day and age the economy has fundamentally changed everything," said Mr. Gerber. "We cannot go back to data of decades past because everything has changed—globalization, automation, recession—all these things have dramatically impacted to the point where we’re seeing Wall Street demonstrations. If we can begin to change the mindset and let this be less of a handout society and let this be less of thinking somebody owes you something and change the mindset so that young people feel engaged and ready to be activated that will enable them to not just take out their frustrations on the street, but take it out by doing something about it and building America themselves." </p>
<p>Spoken like a serial entrepreneur. Now if only someone would address the ills of <a href="http://www.slate.com/articles/life/culturebox/2011/10/generation_catalano_the_generation_stuck_between_gen_x_and_the_m.html">Generation Catalano</a>.</p>
]]></description>
		<content:encoded><![CDATA[<p><div id="attachment_20349" class="wp-caption alignleft" style="width: 201px"><img class="size-full wp-image-20349 " title="scottgabout" src="http://nyobetabeat.files.wordpress.com/2011/10/scottgabout.jpg" alt="" width="191" height="191" /><p class="wp-caption-text">Mr. Gerber.</p></div></p>
<p>Yesterday a new $10 million early stage seed investment fund called <a href="http://genycap.com/">Gen Y Capital Partners</a> launched out of its home base in New York City. </p>
<p>Its no coincidence that the White House's announcement about <a href="http://www.sba.gov/startupamerica/student-startup-plan">easing student loan burdens for entrepreneurs</a> came on the same day. After all part of Gen Y Capital's business plan, which gets <a href="http://www.whitehouse.gov/blog/2011/10/26/reducing-student-loan-burdens-america-s-entrepreneurs">name-checked in the White House release</a>, leverages the recently-reformed Income-Based Repayment plan to help startup founders pay off their student loans. Yup, you read that right. Pay off, not defer. </p>
<p>Betabeat talked to Gen Y founder Scott Gerber, author of <em>Never Get a "Real" Job</em> and founder of the non-profit Young Entrepreneur Council, about how student loans play into entrepreneurship and why Gen Y can help the 99 percent.<br />
<!--more--> </p>
<p>Mr. Gerber said the notion for the for-profit fund, which is financed by private and institutional investors, started a year ago.  "The YEC and I have literally spoken to thousands of 20-something college students asking them what were the barriers to entries. The top three were: college student debt, the fact that they were being turned into boomerangs--ended up going home and living on their parents, which is very unsupportive and that they had no access to capital or real mentorship." Removing those barriers, he reasoned, would make a capital infusion more effective. </p>
<p>Income-based Repayment, or IBR, is a federal program that anyone can apply to that defers or lessens student loans depending on income level. "So if the founders we select subscribe to IBR and still have student loan debt, we will basically pay down the remainder of the debts for three years until they hit zero. That way they remove them from the equation and they can fully concentrate," said Mr. Gerber. "We’re actually making the payments. And that’s not part of the equity investment that we make, that’s a service we offer to our founders." </p>
<p>It will likely take Gen Y three years to deploy the capital. Mr. Gerber said the average investment will be between $15,000 and $50,000, but "in very select opportunities," the fund may invest up to $250,000. In addition, the founders selected by Gen Y will have access to YEC members, which includes the founders of Reddit, Mint, and Living Social, for mentorship and potential co-investment alongside Gen Y. Mentors are divided into verticals so it depends on the interest of the members as to whether they want to invest. </p>
<p>The association with President Obama started because for the past several months YEC has been championing something called the Youth Entrepreneurship Act on both the Hill and in White House meetings. "It would take IBR to a totally other level, which is student debt forgiveness and deferment, which would theoretically would be the absolute next step of how IBR would work if we had our way!," Mr. Gerber enthused. </p>
<p>The public-private partnership only extends to IBR, there is no government money in Gen Y's $10 million fund. The <a href="http://www.sba.gov/startupamerica/student-startup-plan">new IBR reforms</a> let students making $20,000 or less defer payments until they get to a higher revenue grade. "So for startups that's amazing because it allows them to have more operating and startup capital, because the money they do have is not just being dumped into loan repayments." As your income rises, payments fluctuate up to a cap of 10 percent of income. The reform works by extending your federal student loan from 10 years to 20 years. Anything after that gets forgiven entirely, explained Mr. Gerber. </p>
<p>Where does the 99 percent come in? "We think that folks like Y Combinator and TechStars do an incredible job of getting the best most sophisticated tech elite out there. We don't just want to do a third version of that. So instead we're going after companies that are certainly enabled by tech or assisted by tech, but are not straight-up tech businesses," he explained. Rather, Gen Y would look for businesses that are scaleable and provide value. "But they are companies that would be overlooked by incubators or startup accelerators." As an example of a potential Gen Y contender, Mr. Gerber offered a customizable granola bar company where items would be ordered through a website using a process the founders built. </p>
<p>We're not sure whether the Occupy Wall Street movement would be sold on Mr. Gerber's "build a job to keep a job" motto. But long before protesters started camping out in Zuccotti Park, Mr. Gerber has been a talking head on cable news discussing unemployment and underemployment rates for young people in America. </p>
<p>"I believe personally that in this day and age the economy has fundamentally changed everything," said Mr. Gerber. "We cannot go back to data of decades past because everything has changed—globalization, automation, recession—all these things have dramatically impacted to the point where we’re seeing Wall Street demonstrations. If we can begin to change the mindset and let this be less of a handout society and let this be less of thinking somebody owes you something and change the mindset so that young people feel engaged and ready to be activated that will enable them to not just take out their frustrations on the street, but take it out by doing something about it and building America themselves." </p>
<p>Spoken like a serial entrepreneur. Now if only someone would address the ills of <a href="http://www.slate.com/articles/life/culturebox/2011/10/generation_catalano_the_generation_stuck_between_gen_x_and_the_m.html">Generation Catalano</a>.</p>
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