What is Startup accelerators?
Startup Accelerators is an acceleration program that supports early-stage start-ups in development of successful high-growth businesses through mentorship, education and partnerships, which often includes financial investment. It’s a mentor-based program that provides intensive guidance, support and structure for a set period of time, typically three months.
There are Startup accelerators which are specific to sector and others are sector agnostic and the selection of the startups for acceleration happens depending upon the startup’s internal objectives and requirements like industry, stage, location and sometimes even solution. It helps accelerators to specialize and be most valuable to a certain group of startups.
Some accelerates also provide initial seed funding along with the mentorship in exchange for a small percentage of equity in the business and others also provide other services which are akin to success of the business wherein a small retainer ship is also taken for a period of engagement.
Startup accelerators often:
- Get you an access to the subject matter experts’ knowledge and guidance related to your sector.
- Facilitate the partnerships with the various industry players say governments, corporates, investors as a part of GTM strategy.
- From curating and tweaking the business and revenue model to your best advantage from time to time to suit the market and growth, they also provide you support for all ancillary functions of regulatory compliances, marketing, accounting and returns etc.
- Start-up accelerators create an environment. Whether virtual or in person, start-up accelerators provide informal feedback and guidance on the technology or business concept you’re pursuing. These “hackerspaces” are collaborative workspaces where engineers and creative problem-solvers can help you pivot from an exhausted idea or break down a good idea and rebuild it into something even better.
- In certain cases, they also provide you with the space to work and it not only gives you the freedom of thought but also being in the same environment as other start-ups gives you a moral support and advantage to solve the problem then a there as they are binging the company of so many entrepreneurs from different sectors and specializations.
- They also keep you equipped with the latest incentives and benefits that are available to startups from government and grants from colleges and incubation centers.
How Does it Work?
Over all, Startup accelerators not only make sure that your growth is accelerated multifold but also make sure that all the other functions apart from product development and revenue generation. I.e. accounting, finances, marketing branding, team building and fund raising are taken care of. Make sure that all the gaps are filled.
Once acceleration process has started and the business has reached at a level where the next round funding can be raised, accelerators help you with the investors to raise funds as well.
Demo Days are arranged by the accelerators wherein a lot of startups are shortlisted depending on the parameters set by the accelerators and chosen ones are given an opportunity to present their idea and product in front of the stakeholders who are investors, corporate and government bodies. Startups must keep a check on such demo days and participate in them.
Overall, startup acceleration is a good step to grow at a multifold speed but the real challenge is to choose the right one for you that can indeed be an asset for the company.
About Sapna Dudani
She is a Chartered accountant by qualification with an experience of over a decade in consulting with big 4s. Currently into start up space, accelerating and arranging funds debt and equity for start-ups as well as for corporate.
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