Accelerators are becoming increasingly important in startup communities around the world. It is a business program that provides resources, mentorship, and funding to businesses and startups in order for them to improve their performance and outcomes.
Startup accelerators, also known as seed accelerators, are fixed cohort programs that include mentoring, training, and a demo day.
In this article, we have compiled answers to the majority of the questions you might have about these accelerators.
What does an Accelerator Program entail?
- A selection process
- A cohort of startups
- A fixed-term business program from start to finish
- A group of mentors/advisors to support the startups.
- Training sessions for the transfer of knowledge
- Seed funding
- Networking opportunities
How does an Accelerator Program work?
During a startup accelerator program, mentors pass on the knowledge they have acquired over the years through a combination of structures like training sessions, seminars, and workshops.
From a large number of applicants, the most potentially successful startups are selected and brought together in a space where they can be spotted by investors and other corporations. These startups are placed under the tutelage of a group of high-profile mentors whose knowledge, expertise, advice, and connections can go a long way in developing them.
The startups are then set up as a cohort, like a class so instead of each startup getting to have one on one pieces of training, they get trained as a group to allow them to interact and network with each other.
Corporations, government agencies, and investors primarily fund accelerators in order to discover and support innovative technologies. Startups generate profits through investment returns, economic progress, and the development of new technology.
Read also: The Innovation Culture
Accelerator programs consist of 6 main processes:
Applications/ Acceptance
Only 1 to 3 percent of all applicants are accepted after submitting applications. During this time, the startups can interact with the organisers and learn more about them. Startups are not required to join or accept the program until they sign the necessary paperwork.
Get funded
One of the primary reasons that founding teams and entrepreneurs choose the accelerator path is to obtain funding. Accelerators provide seed funding to companies ranging from $10,000 to $120,000. Although some have recently reduced the amount of funding they provide, they still see funding as a major barrier to success because it may affect future fundraising efforts.
Focus
This system has a significant advantage in that it focuses on entrepreneurs. They are being dragged into the process for 3 to 6 months, according to the Harvard Business Review. This is a tense period in which participants are compelled to focus and then make progress.
Learning
Learning is an important component of the process. It contains seminars, workshops, and mentorship opportunities that address topics such as ‘how to establish a business’, ‘pitching’, and ‘the legal side of things’.
Networking
During the acceleration period, entrepreneurs have numerous opportunities to network with possible investors and other industry support providers. These connections can be quite beneficial.
Demo Day
This is the graduation period, where each startup in the cohort presents and pitches. It marks the completion of the accelerator program. This is where startups get to demonstrate what they have achieved from the amount of time and effort they put into the program. Startup founders typically include 15 to 20 slides in their pitch decks as part of the presentation.
Key Takeaways
Accelerators efficiently bring multiple groups of people together around their program and stimulate interactions between them. They bring top businesses to the table by conducting a selection process that involves an open and extensive application procedure. High-profile individuals conduct the evaluation and during the accelerator program, when a high-quality startup has a significant value, it attracts potential investors.
Mentors are another important part of accelerators. The cohort benefits from a mentor’s networks and knowledge. Mentors become a key element of accelerators as a result of this.
Through accelerators, many innovators and businesses can be surveyed and filtered out. The accelerator creates a validated cohort of businesses that are validated by investors and mentors.
The accelerator experience is a fast-paced, intensive, and in-depth training process aimed at compressing years of valuable learning into a few months and speeding up the life cycle of innovative startup enterprises.
