The amount of new startup accelerators has gone through the roof.
Since they first entered the scene in 2005over 3,000 accelerators were advertised globally in 2021.
It all started with accelerator programs backed by a venture capital fund, such as Y-Combinator.
This isnt surprising, as accelerators are proven to have a positive effect on startup success.
Research shows startups that graduate from an accelerator program have a23% better survival rate.
This is considerable seeing as an estimated90% of startups fail.
This begs the question; should your startup join an accelerator?
While there are many factors to consider, it all boils down to fit, timing, and commitment.
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Find your fit
The number one tip for founders is: Do your research!
Another question founders should ask themselves is: whats my main motivation for joining a specific program?
You shouldnt just be looking at whether or not an accelerator fits the industry youre in.
Also consider what you and your fellow founders hope to gain from it.
Take this as an opportunity to build long-lasting relationships within these organizations.
These people can help you beyond the three months accelerator program.
Moreover you wont have time for it during the program anyway.
Another way to find the right accelerator program is by checking the quality of the mentors.
How involved are they, and which ones would help your business most?
Is the timing right?
Some early-stage startups are still in the idea stage.
And then theres the money question.
Investment maturity should also play a role in considering whether to join an equity-basedaccelerator.
Accelerators often provide seed funding in exchange for equity, or as convertible debt or a stipend.
Although valuations are now sometimes going crazy, especially in DeFi.
Thats why coming up with a clear future funding strategy will help.
If you consider that as a valuation event that would be a bad deal, Schammel says.
The reason startups give us 6% equity is for the web connection.
You basically give 6% tous as a co-founder.
If you thought there were a lot of accelerators to choose from, there are even more VCs.
First-time founders in particular tend to need help with finding the right investors and negotiating favorable terms.
Running your business as you go through the program can be challenging and tough.
Nataly Schammel says:
At the Future of Finance Accelerator we focus on teaching founders to do more faster.
This time investment can inevitably be a time-saver.
Those interactions helped them to figure out both that they needed to learn and what they needed to learn.
The intensiveness of the program makes it harder to complete as a solo founder.
There are in fact many accelerators out there that limit the number of solo founders accepted.
Y-Combinators founder Paul Graham famously said, Starting a startup is too hard for one person.
The researchers suggest this might be due to the increased agility of having a single decision-maker.
Join or not?
In the end, it should be a deliberate business decision.
The Techstars + ABN AMRO Future of Finance Acceleratortakes place in September-December 2022 in hybrid format in Amsterdam.
you could register until May 11th.
