/ Yield Index / NewChip (Defunct 2023)

NewChip (Defunct 2023)

Defunct · Historical: paid program $7-25K + equity
F

Critical (F) — Cohort Yield Grade

NewChip operated a paid 'global virtual accelerator' from 2016 until filing Chapter 7 bankruptcy in May 2023. The model — charging founders thousands of dollars in fees rather than taking equity — was widely criticized as predatory. Multiple fraud allegations preceded the bankruptcy; founder Ryan Rafols faced civil and criminal investigation.

18
Composite / 100
/ Subscore Breakdown · 5 Dimensions

Where this grade comes from.

Equity Terms Fairness
F
Founder Outcomes
F
Mentor Quality
F
Demo Day Yield
F
Post-Program Network
F
/ Public-Record Events

Key events & disclosures.

  • Chapter 7 bankruptcy May 2023
  • Founder Ryan Rafols faced fraud allegations
  • Estimated 1,000+ founders paid $7K-$25K each
  • SEC civil action ongoing as of 2024

/ Best for

Not relevant. Cautionary example of paid-accelerator model risk.

/ Watch out for

Paid accelerator models that charge thousands of dollars to founders have produced multiple bankruptcies. NewChip is the category-defining cautionary tale.