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Like you said, the vast majority of Y Combinator clones do seem to offer office space to their companies. IMHO, too many programs do this for it to be a coincidence.

The best reason I can think of for this phenomenon is that for a program that has yet to establish its sense of community, the physical space acts as a rallying point, and helps project its "presence" amongst entrepreneurs, investors, what have you.

Whether or not it's the best move for a struggling company to get shared office space is a different discussion entirely - but it may well be the best move for a "struggling incubator" (so to speak) to have a vibrant, bubbling shared space to show off to would-be investors, the press, etc.

Or, of course, it may be that lots of incubator program heads simply disagree with Y Combinator. But I have trouble believing the Y Combinator view is that extreme that so few incubators would at least try it their way. The logic behind it is reasonable enough, and the results speak for themselves.



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