Good morning, All,
We’re hosting a panel on accelerators this week, let’s talk about accelerators. We mentor at ER Accelerator, and always attend the hospitality events that precede Deadline Day to talk to potentials. The question that always comes up: Is it worth the equity they’d be giving up for a rather small amount of seed investment. Ah, but then there are the intangibles that you may not be aware of:
1. There are mentors who are well known investors/industry luminaries who come in for an afternoon to talk to you – both as a group, to give you an overview – and then one on one. Invaluable, especially since they often return on Demo Day to catch your pitch, and you already have something of a relationship with them that’s much more than a warm introduction.
2. There are mentors who are subject matter experts who really work with you to shape your presentation – and introduce you to potential partners/clients. You often have access to them for far longer than just an afternoon, they’re also there on Demo Day, and some of them even end up investing in the companies they’ve been mentoring. Didn’t see that one coming, did you? Some even invest before Demo Day, or introduce you to potential clients/investors who do.
3. Sessions generally run for three months – which means that you’re in very close quarters with your investors, qua, the people running the accelerator. They get to know you and your product inside and out, and they don’t disappear after Demo Day: they’re always there to help you.
4. Camaraderie/help you get from other companies in your ‘class’ – and they don’t forget you after the session is over
5. Of course, your pitch and deck are shaped up and made investor-ready,
6. The weekly ‘practice pitches, ‘ with invited guests present who are either investors or subject matter experts – and their input is invaluable – and some of them might also be a potential investor/client of yours.
7. If/when you get stuck, subject matter experts are brought in to help you.
8. Companies from previously classes come to the pitch sessions – and they might have contact/clients/affiliates for you as well.
9. It doesn’t end once your 3 months are up: the accelerators have a vested interest in you; they get to know you well; and they’re always there for you when you need them
10. Demo Day – the investors and the press come to you.
Because of the mentors/support system in place at the accelerators, it’s not unusual for startups there to have clients/revenue even before they hit demo day. Not bad for a 3-month program, eh? Think of it as a startup school: a crash course in how to build a business, where they pay you to attend – and of course there’s a trade off: that’s the bit of equity they take, and they’ve earned it. Not every company succeeds, but isn’t that always the case. Is it for you? That’s your call. Each one has its own sweet spots, so don’t put all of your eggs in one basket – and there are plenty of accelerators out there, so if you don't get into the first one, next. Because we always go - onward and forward. Read More...