The key is that both parties should benefit.
The corporate gets to explore new ideas quickly and at a low cost.
Have we reached peak-accelerator, or is it still worth joining one?
1: Will it cost you any Equity?
It’s free, every week, in your inbox.
Some early stage accelerators may demand some of your equity to join them.
This could have some very positive effects as they will be incentivized to maximize your success.
It shows a sense of long-term commitment and could result in a productive partnership.
The program may well be worth it for you too.
However, ensure you read the small print.
Sometimes there can be anti-dilution provisions which ensure their % holding is maintained through further funding rounds.
Speak to your investors and get their point of view before making a decision.
2:Can you afford the travel & expenses?
Consider how often youll need to travel if you were to join the accelerator.
Are the offices based near where you or your team live?
If not, figure out how often you will need to travel and estimate the costs.
Sometimes youll be able to participate in a lot of the program remotely.
After all, big corporates are often international and happy to work flexibly.
Finally, consider taking any opportunities you have to reduce costs from the outset.
For example, many will allow you to pitch remotely, saving both time and money.
3: Will you oughta pay to play?
Some accelerators charge joining fees to their start-ups.
4: How will this impact your brand and reputation?
5: Do you have the capacity to do this properly?
What with the investment you are making by joining the accelerator, you oughta make the most of it.
Consider whether youre about to onboard a new customer, or ramp up with an existing one.
Will your teams have the capacity to juggle that with the accelerator, or might it backfire?
Work with the program organizers to do an honest appraisal of whether you should join.
6: Whats in it for you?
Does the program offer new connections you dont already have?
7: What do they want to get from it?
Are you sure they have the genuine intention of spending on new, high-risk startups?
Take a look at their history of investing in, and signing commercial deals with, the program teams.
8: What do prior attendees say?
Seek out prior teams and ask them as many frank questions as you’re free to.
9: Is your value proposition clear?
Another obvious one, but, believe me, many great ideas struggle to get buy-in due to this.
Ive met plenty of start-ups who, face-to-face, explain their concept well, and it sounds great.
Then two months later the tool comes in and I cant make head-nor-tail of what they do.
Treat the accelerator as having started as soon as youve been accepted, not on its launch.
Being well-prepared may also set you apart from the other start-ups in the program and impress the decision-makers.
After all, this can also be seen as part of a longer procurement process.
Small things like this can make a massive difference in what can be a very short accelerator program.
In case you didnt know, Lloyds is the birthplace of insurance and has a fascinating history.
