5 Key Points on What startup accelerators really do

Startup accelerators are programs designed to help early-stage startups grow and succeed. These programs typically provide resources such as mentorship, funding, and access to a network of investors and industry experts. The goal of an accelerator is to speed up the growth of a startup by providing a structured environment in which founders can receive support, guidance, and feedback.

Before deciding which accelerator to join, you must ask the question – what startup accelerators really do to help your business grow? You can select the right accelerator based on the type of help you need. Accelerators usually run for a few months, during which time startups attend workshops, meet with mentors, and work on refining their business model. The ultimate goal is for startups to become investment-ready and secure additional funding. While accelerators do take a small equity stake in the startups they support, the benefits of participating in such a program can be significant, including increased visibility, credibility, and access to resources that would otherwise be difficult to obtain.

What startup accelerators really do

As a founder, along with a shortage of financial resources, your most expensive resource is time. Although I speak extensively about time management, the focus for a startup founder is on creating products and reaching the market quickly. So, before joining a startup accelerator, please ask this question – what startup accelerators really do, and how can they help me?

Some of the common help which startup accelerators provide are:

• Mentorship: Generally you’ll find people able to help you with pitching your business idea. They can also provide you coaching on elevator pitch, developing business plan and creating a framework for your idea
• Confidence: Startup accelerators open you up to meet other businesses in similar stages. The biggest help I found was in being able to own the idea and present it in front of others. The mock presentation exercises helped me a great deal in pitching it in front of strangers. This helped train my confidence in my presentation and also boldly speaking about the idea.
• Motivation: Startup accelerators generally expose you to founders working on different ideas. They help you realise that you’re not alone in this journey. It is a fascinating network of new people, doing different things and on different stages of a journey.
• Network: Some startup accelerators have great networking opportunities and expose you to some mentors, investors alike. This not only helps you prepare your idea to present in front of an investor, but also creates direct opportunities in some cases.
• Dedicated space: It might sound silly, but these accelerators provide you with an office space and access to formal working environment. Although working from a garage sounds like a glamorous founder’s journey, it can get pretty lonely and distracting. A dedicated accelerator space can make a huge difference for your initial stages.

These are some common benefits of being in a startup accelerator. However, before joining one, be sure of the type. There are several specialised accelerators that can help you build a particular area/stream of business which can help you the most.

Types of startup accelerators

The type of startup accelerator depends on the type of entrepreneurship you want to build as a founder. For instance, a social entrepreneurship model is different from a profit-focused tech startup. Some of these accelerators have a specialised skill set that can open doors for your business.

• Sector specific accelerators: This type of accelerator exposes you to specific areas of the market. For instance, you can find tech accelerators, cyber security, social entreprenuership, banking, etc. Depending on the type of your business, some of these accelerators also provide initial funding to help grow your business.
• Investment accelerators: Some accelerators focus on grooming a specific type of business. For instance, a large banking firm might sponsor accelerators which aid the banking sector. Apart from exposing you to some key customers, they can also provide insight into challenges a potential user might face to give insight to your product development
• Technology and innovation accelerators: These accelerators focus on disrupting the technology scale and focus on providing you with mentorship and opportunities to shake the market. Although the acceptance criteria might be a bit steep, they are well funded and have exposure to key talent such as university tie ups, etc.

Accelerator Vs Incubator

Before considering the question -what startup accelerators really do, identify whether you’re ready for an accelerator. A pre-accelerator stage is an incubator. These are usually university-funded and help you develop the idea further. The focus of these incubators is on the development of your idea, exposing you to knowledge and popular frameworks to develop the business idea.

These incubators are driven by mobilising new ideas to the market. Their purpose is less commercial as compared to an accelerator and you can find a wide variety of business ideas. Generally, incubators have early-stage businesses as compared to accelerators which expect a certain maturity and progress in your business idea.

For a general idea of the startup support system, please refer to the table below.

Are startup incubators worth it?

My personal experience with incubators has been very positive. However, I’d like to highlight that make sure that you have an expiry date when you join an incubator. The growth or rate of progress is fairly slow compared to an accelerator. Sometimes, these incubators can be slightly further away from commercial realities as well.

If your startup idea is mature and you’ve already developed phase 1 of the product and have >1 customer, you’re probably too old for an incubator. It might even be holding you back. Such an instance normally indicates that you need to build a path to move on to a startup accelerator.

As for the question – what startup accelerators really do – the answer is – they help you to move from a small business or idea to scalable startup entrepreneurship. Make sure that even for an accelerator that you choose carefully and are ready to move to the next stage. Each of these support systems is valuable for a certain amount of time. You’ve got to run towards being independent to create and nurture your idea consistently.