Types of Startup Accelerators for a business founder

Types of Startup Accelerators: Startups can feel lonely most times. When you start something new, the idea takes time to formulate. Unfortunately it is a lonely journey until you achieve some success. However, it can be fun bringing shape to this idea. One of the most powerful supporters for this journey is the startup accelerators. In this article, I want to talk about the type of accelerators and the stages where they can help.

What is a startup accelerator?

As the name indicates, startup accelerators are resources that can help grow your business idea. In early stages of a startup, your idea isn’t fully formed. A business idea must be validated, prototyped to achieve the product market fit. Achieving the product market fit is one of the biggest successes in a startup environment.

To achieve all this, the startup accelerators provide the perfect launchpad for you to develop your business idea. The foremost thing necessary for your startup idea is a business plan. Most accelerators ask you to produce an initial business plan to understand your thoughts. Have a read through – how to write a business plan for ideas around structuring your startup idea.

Read more about what startup accelerators do to find out if they are worthy of your time.

Types of startup accelerators

You can find various types of startup accelerators. However, I’d like to differentiate between incubators and commercial accelerators. Incubators help in early stage businesses.

Incubators Vs Accelerators

You can find most incubators in universities and educational institutions. Their sole purpose is to give shape to your idea. Some incubators help you in the technological aspect whereas others in the business strategy. These are great to introduce you to classic frameworks, business plans and cutting edge technical ideas. They even provide access to key resources who can help you develop the idea.

The best part of incubators is their access to university related funds, ability to sponsor visas and research grants. These incubators provide a theoretical framework that can help you grow a business idea. With these university related accelerators, you can gain access to a wonderful network or resources. Most incubators have a screening process providing you access to good quality network.

Startup Accelerators

As the name indicates, startup accelerators help you grow your business. Achieving a product market fit is a great way to qualify into startup accelerators. You might be familiar with the common reasons that startups fail. The most common one is achieving a product market fit. Once you establish that your product is useful, the startup journey can take the shape of expansion for which some accelerators can help immensely.

Free Accelerators

Some startup accelerators offer free services as a part of their corporate social responsibility. Some others are led by the local startup community with a desire to foster entrepreneurship in their county. Both types of startup accelerators have access to funds and can introduce you to powerful networks.

Take care however that some of these free accelerators have a poor screening process. This unfortunately means that you might meet some founders who aren’t as passionate in the startup journey. It is also open to a few small businesses as well – diluting the type of network experiences you can gain. Read more about differences between startup and small business.

Paid accelerators

These types of startup accelerators offer a specialised service. Most accelerators in this sector are focused on a particular market or theme. They offer a focused approach towards startup growth and can introduce you to a connected network. If your idea has gathered good interest, these accelerators can be a powerful way to grow your business.

Although some accelerators ask for money, some others are open to a share in equity. Some of these even offer funding and office facilities to help you grow faster. They can be powerful if your business idea has started to gather momentum. Lookout for mentorship opportunities in these accelerators. Find the right type of mentor for your business idea. They can help you propel your business idea.

Advantages of startup accelerators

Some of the common advantages of startup accelerators are:

1. Access to network: They introduce you to other founders, supporters and logistical facilities required to setup a business.
2. Credibility: Being a part of an accelerator acts credibility to your business idea. Most often, it means that someone has vetted your idea.
3. Support: Both in the form of logistical, intangible support. They introduce you to key people who can understand challenges of setting up a business and support you with the right advice.
4. Funding: Some startup accelerators run funding events, networking opportunities. They help us to introduce you to people who might be able to open your world to opportunities of financial support.

Challenges

1. Bad Quality: They can sometimes be a waste of your time. Some accelerators are created as a way to spend government funds and don’t have experience about doing it the right way. You must be very careful about choosing the right one to help you.
2. Bad networks: They might not be careful in their vetting process. As a result of this, you might end up in bad networks who are incapable of helping your business idea.