StartupTalky

Tag: accelerators

  • 5 Factors to Consider while Choosing Right Startup Incubator

    A business incubator is a company that helps new and startup companies to develop by providing services such as management, training or office space. Startup incubators support the well-interested startup companies both financially and mentally.

    They offer a variety of resources and services which act as means to accelerate the company’s development. This makes them reach great heights in business fields and do an effective service to people.

    So, an entrepreneur must choose right startup incubator for him carefully. Here are some points which can help you to choose right startup incubator.

    How to prepare to get incubated
    How to Choose Right Startup Incubator for your Business
    FAQ

    How to prepare to get incubated

    Make your pitch unique

    Incubators look for companies that will ultimately succeed not just because of the equity stake, but also for investing more capital in future. While scrutinizing the applicants, they look for those who are promising and exhibit the ability to execute. The first impression is always the best impression. So prepare a unique pitch that will distinguish you from other applicants and rehearse it well so that you deliver the best on stage.

    How much you can pay

    You need to pay fees for being admitted into an incubator is typically an exchange of equity in your company. Determine how much you are ready to spend for being in an incubator and you also have to see if it is worth. Consult a legal expert who can help you with the final agreement.

    Decide what you expect from incubators

    Most of the incubators provide you physical spaces, shared services, infrastructure assistance, security and regulatory compliance, helping with borrowing loans, networking with mentors, advisors and investors, attaining strategic partnerships and more for you to grow. So, you have to decide what you can do or manage on your own and what do you expect from incubator.

    How to Choose Right Startup Incubator for your Business

    Examine the talents

    There are two important facts that should be kept in mind while choosing the right incubator.

    • The first fact is what type of resources and services they offer for the development of the startup.
    • The second fact is how much they will be able to sponsor for the development of the startup.

    Other than these facts, there are other things that must be specifically looked at.

    • The first thing is Mentors. Mentors mean a person who is experienced in the incubator. The entrepreneur must find out that the incubator has experience in the required field and their experience would be helpful to the development of their startup company or not.
    • The second thing is Location. Some of the incubators suggest relocating the program to the appropriate location. So, the entrepreneur must be aware if their business will succeed in that location or not.
    • The third thing is the curriculum. That curriculum includes the difficult training and educational seminars. So, the entrepreneur must know their capability of handling them and managing the regular activities.

    Experience is the best teacher

    The entrepreneurs should choose incubators who have the list of companies that are undergoing the same process. They will be able to suggest the best incubator who has many experiences in their career. The entrepreneurs must have incubators who share their experiences and knowledge to help them in developing their company’s success. One company’s bad experience may be another company’s ideal challenge. So, an entrepreneur must prepare their questions in advance and be thorough.

    Capable of choosing strong team members

    Entrepreneurs must choose incubators who are capable of selecting the effective and strongest team members and founders. They give fingertip business ideas to them. That team will make the changes in the development of the startup company.

    A startup that goes through an incubator will more than likely exit as a completely different and certainly more refined business. They make the business more feasible and compatible with the users.

    The entrepreneurs have the big duty to place the right developers and workers at the right place. This will reduce the confusion in the business process and lead the startup to shine among other companies.

    Self-preparation

    The entrepreneur must prepare their duty because it will make them clear in their ideas and make the company run without any obstacles. They must prepare well and be well practiced for their income.

    They should choose incubators who want companies that can succeed, not only because they have shared and invest in the future planning. The incubator must also watch how that company would succeed and find the accurate path for success.

    They must manage the founders and lead them to demonstrate the program execution. They must focus on all the activities done by the doors and founders and suggest them to work as early as possible because submission of the project on time is important. The entrepreneur should select an incubator that acts like a caring mother for the company.

    The incubator should take care of budget

    The entrepreneur must determine the person who spends the limited cost according to their project needs. The entrepreneur should ask themselves how much they are willing to give to be in the incubator and make certain it matches the needs and goals of the incubator.

    The incubator uses the cost in a beneficial manner and decides the final term sheets. It decides the accurate budget of the project without any extra expenses.

    So, these are 5 things that you need to take care when you want to choose right startup incubator.

    The incubator is an incredible opportunity for a startup company, which they should grab at the earliest if they are aiming towards success.

    FAQ

    How do incubators help startups?

    Incubators are an organization, platform or team of experienced professionals that helps startups bootstrap during its early stages and often provides mentoring, guidance, co-working space and also at times some funding.

    Is Y Combinator an incubator or accelerator?

    Y Combinator (YC) is an American seed money startup accelerator launched in March 2005. It has been used to launch over 2,000 companies.

    How many types of Business Incubators are there?

    There are 4 types of Business Incubators, Corporate Incubators, Local Economic Development Incubators, Private Investors’ Incubators and Academic Incubators.

    Conclusion

    So, the entrepreneur should choose an experienced incubator for making a perfect budget for their project. The incubator is an incredible opportunity for a startup company, which they should grab at the earliest if they are aiming towards success.

  • What are Startup Accelerators and Are they worth it

    There are several stages involved when we think of a business idea. Funding, labor, target audience, pitches and the list goes on. Every startup has a pre-success story. Some of the greatest startups have taken birth in their founder’s garages, some in a friendly gathering, and some with a simple vision of providing what is lacking.

    Startups are everywhere. Every sector of the ecosystem has an emerging startup and is gaining ground with national and international funding. Sometimes, an amateur entrepreneur might come up with a really good idea but might not know the path towards execution. Or talk about an experienced player launching a new product but doesn’t know who to target.

    There are institutions like angel investors, incubators, accelerators, and funding companies who are then a resort these new entrepreneurs run to. These institutions help the startups primarily with fundraising, polishing their products, and making them market-ready.

    Difference between Incubators, Angel investors, Accelerators
    What are Startup Accelerators
    Are Startup Accelerators worth it
    Startup Accelerators around the world
    Indian Startup Accelerators
    FAQ

    Difference between Incubators, Angel investors, Accelerators

    Were going to contemplate which of these institutions are best suited for startups. Let us find out what distinguishes them from each other.

    So as we distinguish between these institutions, we find that each of them differs in the style of investment, mentorship, and education. Incubators and angel investors are along similar lines. In this article, we will be diving deep into how accelerators work for startups and how they contribute to their success or failure.

    What are Startup Accelerators

    Startup accelerators, also known as seed accelerators are short-term mentoring programs. They are cohort-based, that help emerging companies to deseed their ideas into a fruitful selling product or service. They also include educational guidance and financial backup.

    They basically pull in all the components and aggregate them for the startup to get it up and running. Startup accelerators aim to solve basic challenges like fundraising and mentorship with the help of cohorts.

    Are Startup Accelerators worth it

    The accelerator base in the global ecosystem is large enough to confirm that accelerators are giving the required knowledge and momentum to launch themselves in the cut throat competitive market. Acknowledging this very fact, many large companies such as Microsoft and Jio Infocom are launching their own accelerator programs.

    Startups are the future of the every thriving economy. And accelerators are the driving force that is helping these startups gain new grounds in terms of capital, market study and product launching.

    The follow ups in the accelerator programs guide these startups to further gain momentum and propel towards larger goals. Hence, it is safe to say, that start up accelerators are absolutely worth it.

    Percentage of accelerators offering different forms of business support
    Percentage of accelerators offering different forms of business support

    Startup Accelerators around the world

    Startup incubators and accelerators have a vital role in the making of a successful company. From working space, mentorship to fundraising, accelerators give it all to the startups to embark on their success journey. Here’s a quick glance at the world’s top accelerators.

    Y Combinators, USA

    Y Combinators is considered the supreme accelerator in the world. Founded in 2005, by Paul Graham, Y Combinators has funded 2000 plus startups including Dropbox, Stripe, Airbnb, Instacart, Twitch, Coinbase, Reddit, and Weebly.

    Among the 13000 applications on the internet every year, Y Combinator selects about 200 to 240 projects to work on. In their biannual 3-month training program, relocates you to silicon valley to work closely with their team and encourages further investments in your startup. In terms of investment, they give $150000 in exchange for 7% equity in the startup.

    TechStars, USA

    TechStars is a worldwide network, with a presence in 15 countries, which is known for accelerator programs that have produced 1000 plus companies valued at 8 billion. Uber, DigitalOcean, Twilio, and SendGrid are amongst a few startups which are a result of the accelerator venture capital fund, TechStars Venture.

    The TechStars Global Entrepreneurship Network is spread across 15 countries which provides startups with networks, mentors, consultants, investors, and more. They give a $100000 convertible note out of which TechStars contributes $20000 in return of 6% equity.

    500 Startups

    Located in San Francisco, California, 500 Startups was founded in 2010 with a goal to support emerging entrepreneurs worldwide. A capital venture managed by 150 employees from 20 countries around the globe, spreads investments in 70 plus countries.

    They have aided firms such as Apple, PayPal, Google, Facebook, Instagram, YouTube, Yahoo, LinkedIn, and Twitter with mentorship and functional wisdom. They offer a 4-month seed program with a $37000 participation fee which unlocks access to networks, investors, and free workspaces. They provide $150000 in exchange for 6% equity.

    Indian Startup Accelerators

    Today, India alone has more than 70 startup accelerators spread across the country. Revxx Accelerators, BLS Accelerators and India Accelerators are a few who are putting themselves up on the map.

    The founder and Managing director of India Accelerators, Ashish Bhatia, in an interview with Inc42 said, “Accelerators play the role of an aggregator and bring all the components together to provide support to startups to grow at an accelerated pace and increase their overall chances of survival.”

    Industry veterans believe that most startups have a chance of failure in the early stages of execution with little or no knowledge and depth of the market. Accelerators then, help these companies to strategize and pushes them towards pragmatic solutions.

    “Though entrepreneurs are primarily blamed for their failures, it is an equal responsibility of the accelerator to gauge its own potential in supporting a startup that requires a strong go-to-market (GTM) strategy to sustain the business,” says Riya Aggarwal, CEO of BLS Accelerator, a startup accelerator based out of Delhi.

    Venture Catalysts

    Venture Catalyst is India’s largest and the first start up accelerator. HomeCapital, Go Mechanic and Global esport are a few noteworthy mentions of its investments. Founded in 2006, Venture Catalysts offer $50000 to $1 million worth investment to emerging companies.

    Collaborating with Microsoft, Amazon and IBM, it conducts seminars and monthly workshops for budding entrepreneurs in major cities of India as well as cities like Hong Kong, London and Doha.

    Startup Boot camp, Ignite, Melbourne Accelerator Program and Metavallon are also among the top startup accelerators around the globe providing hands-on training and equity options to emerging companies.

    FAQ

    What is the difference between an incubator and an accelerator?

    Accelerators focus on scaling a business while incubators are often more focused on innovation.

    How do startup accelerators make money?

    Accelerators usually provide seed investment for each startup for an equity stake in the company.

    What are the best accelerators?

    Y Combinator, Techstars, 500 Startups, Venture Catalysts, StartupBootCamp are some top accelerators.

    Conclusion

    The follow ups in the accelerator programs guide these startups to further gain momentum and propel towards larger goals. Hence, it is safe to say, that start up accelerators are absolutely worth it.

  • Accelerator Vs. Incubator – Which one is Right for your Startup

    Accelerator and incubator have a lot of differences. Most of the time the entrepreneurs would get confused in choosing the right programme. Understanding the key differences between the two will help you choose the ideal programme for your startup.

    Below are the key differences between Accelerators and Incubators

    Accelerator
    Incubator
    FAQ

    Accelerator

    Accelerator fund companies that have a proper idea to execute

    Accelerators are funded by an existing company. Big companies fund the new startups helping them to grow the business on a large scale. It is normally the top companies funding the smaller startups. Accelerators fund the existing companies that have a business model and a proper idea to execute.

    The main aim of the accelerator would be to scale the company and increase its productivity. They will be focused on accelerating the company. Mostly they would help the startups in increasing their presence in different areas and making their services and products more affordable and available easily to the end consumers.

    Accelerators have a fixed period of time

    There is a fixed period time for accelerators. Usually, an accelerator would give the companies few months to scaleup which would be around three to four months. At the end of the four months, they will provide the company a platform to pitch their business idea to different investors. They work on a time frame which is set by the accelerators.

    Accelerator monitor the companies by purchasing a small stake in the company

    Accelerators monitor the companies. In the majority of the cases, the accelerators would buy a small stake in the company and monitor them. They provide mentorship and feedback to the startups. The startups also get access to a lot of resources which will help them in scaling up.

    Top Startups Funded by the Microsoft Accelerator Program
    Entrepreneurship is one of the growing professions in the recent times, and moreindividuals are gearing up to work on their own startups with unique andactionable ideas. Startups with a practical solution, and a roadmap to build afortune out of it are often funded by venture capital and investmen…
    StartupTalkyAnsh Mehrey

    Structured Approach

    The programme of an accelerator is structured. Their focus will be to create an alignment and understanding with the startups. Since accelerators invest a specific amount in the startups and acquire equity stakes, they will take up more responsibility and the success of the startup would be their need.

    Accelerators use a more traditional approach for applying to their programme. The application process for accelerators is much more formal. Hence, there is a high threshold for being accepted into the accelerator programme.

    Limited Slots

    You will have to apply for slots in the programme and the slots would be limited. The accelerators will later identify the top startups among the applicants. They will select the startups which can be invested in and the scalable ones.

    The startups will have to show that they have the ability to grow in a fast-paced environment within months.

    Startups Funded by the Facebook Accelerator Program
    The Startup Ecosystem has evolved dramatically through the previous couple ofdecades, and entrepreneurs across the globe are striving hard to come up withinnovative and actionable ideas. When individuals or groups bring forth a planwith a roadmap and a vision to change the conventional system, th…
    StartupTalkyAnsh Mehrey

    Indian Tech Startups Funded by International Investors
    Indian Tech Startups Funded by International Investors

    Incubator

    Incubators are Independent

    Incubators are mostly independent. They will have connections with universities or venture capitalist firms for funds. They support the startups who are in their beginning stages. They help the startups in building their company.

    Incubators help the ideas to turn into reality

    Incubators normally fund ideas. They will help the people who have a new idea that will shake the market. Most incubators fund startups who have an idea with no proper business model. They will help in transferring the ideas into a specific set of actions.

    Incubators primarily focus on developing innovations. In a few cases, incubators work as a means to develop the company so that the accelerators can take them up.

    Incubators doesn’t buy a stake in the company

    Incubators provide mentorships and feedbacks to the developing companies. Incubators also monitor the companies but unlike Accelerators, they don’t buy a stake in the company. Incubators mostly provide capital to the companies. They are mostly funded by universities or certain economic developmental organizations.

    Incubators are not bounded by time

    Incubators normally operate in an open-ended time frame. They do not have a specific time period. Commonly they mentor the startups for more than a year. They would want the startups to run for a longer period of time, focusing on longevity.

    Incubators are less concerned about how quickly the startups would grow. They invest their time in developing local startups. The startups will get access to various resources. Incubators focus on creating more jobs. They also help startups in licensing intellectual properties.

    Even a slow-growing and startups that are less scalable can approach incubators since they are not concentrated in fast-growing and scaling up the business. Incubators are concentrated on the sustainability of the business.

    Incubators are concentrated on creating a creative environment for the startups than having a structured programme.

    Which one is right for your startup – Accelerator or Incubator?

    Incubators would be your choice if you just have an idea that should be developed or a solution that is not much scalable.

    Once you have placed your idea into action and want to scale your startup you can apply for the accelerator programme or if you have a startup that you would want to scale then you can do the same.

    If you want to enter into an accelerator programme, you will have to show that your startup has the potential in scaling it up. In simple terms, you have to prove that your startup will be an asset to them.

    FAQ

    What does a Startup Accelerator do?

    A startup accelerator is an organization that helps  early-stage companies develop their product and connect them with investors.

    What does an Incubator do?

    Incubators are an organization, or team of experienced professionals that helps startups bootstrap during its early stages and often provides mentoring, guidance, co-working space and also at times some funding.

    Do incubators take equity?

    Many incubators take little to no equity, as they are funded by grants through universities, allowing them to provide their services without taking a cut of your company.

    Conclusion

    Although no one really knows what is good for them until they try it, choosing right incubator and accelerator is crucial. Many soonicorns and unicorns have their base in incubators and accelerators.

    If you are not sure, you can always consider with someone who has experience or take help of professional business coach.