However, investment should never be the single objective for joining an accelerator. There are so many more benefits than just a programme investment! Applying for and participating in an accelerator is time-consuming.
You still want to be running a business successfully while making the most of the accelerator process. An accelerator can be a real challenge for you, your co-founder and the whole team. Funnily enough, it does what it says on the tin - accelerates your business and your relationships.
The application process usually consists of multiple stages. Typically, you will need to prepare a written application outlining what your current situation is, what you want to gain from the experience, and why you deserve a place in the programme. If you are successful at this stage, a series of phone and in-person interviews will follow. The key is being concise and providing all relevant information without starting to waffle. Focus on what the question is and make sure you answer it.
The key to success is to know why you want to join each specific accelerator. If you are applying to multiple programmes at the same time, please take care and make sure you send the right application to the right programme. Not doing so is an instant red flag! Joining an accelerator can be one of the best decisions you as a founder can make.
Starting a business of selling quality handmade products might have been your ambition for many years. This begs the following question, are you willing to make changes and pivot the business if the business model is not scalable, even after trying it out in several markets?
It also means that you might need to pivot your business if things do not work out the way you intended. An accelerator is a bootcamp conducted between 3 to 6 months that provides startups with education, mentorship, seed funding, and opportunities to build traction in the market.
After your application has been accepted along with other startups in the same cohort, you will go through a series of activities that will help you and your team in building your minimal viable product MVP , leading up to the demo day when you and other startups will pitch to a group of investors.
In short, you can expect the following from an accelerator programme:. Different accelerators offer different perks that can give your business a headstart upon launching. As a participant in this accelerator programme, you can also acquire talent for your business directly through Sunway University and their new coding school, 42KL. Nevertheless, participating in an accelerator programme is a huge commitment. If you are just looking for a business fund to mitigate your initial cash flow issue when getting your business started, you should consider to look for bank loans, equity crowdfunding ECF , peer-to-peer financing P2P , or angel investors with low touchpoints and commitment requirement.
Accelerators are essentially businesses that create a suitable environment for startups that facilitate their growth through mentorship, networking, and funding. You do not pay an accelerator in cash, but in return for the assistance and seed funding they provide in growing your business, you give them some equity of your company. These are some examples of deals renowned accelerators offer:. Equity dilution, where your company issues new shares, does not only happen when you onboard a co-founder, but also when investors invest in your company.
If you do not plan to share the equity of your company with an investor, accelerator programmes are not for you. You can opt for bootstrapping in growing your business instead. As the adage goes, two heads are better than one. Accelerators believe that having at least one co-founder greatly benefits your business in the following ways:. Tomasz Tunguz, a Venture Capitalist at Redpoint, has shared a few key observations from 30 successful startups , one of them being the average founding team has 2.
Apple Inc. Nonetheless, being a solo founder is not a deal-breaker. You may not have a co-founder when you participate in an accelerator programme, but many startup founders eventually get a co-founder down the line of running the business. An accelerator can provide the seed funding and facilities you need to kickstart your business idea but at the end of the day, you are still the one who is accountable and has to do all the heavy lifting.
In an accelerator programme, you learn about how to grow a successful business, get advice from mentors who have been in your shoes, and even receive seed funding to launch your business. As an entrepreneur, you are expected to come out with ideas and execute them in a timely manner. However, the most important thing to remember for early-stage founders is that the top three global accelerators Y Combinator , Startups , and Techstars report about ten percent of their portfolio companies as successful exits, according to Forbes.
So getting into an accelerator is by no means a clear indication of success. It often is the first important stepping stone towards building a successful business.
Are you wondering if your startup should join an accelerator? Here are 5 top reasons why it should -. This is a BETA experience. You may opt-out by clicking here. More From Forbes.
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