Technology

#How to choose a startup accelerator — no matter what’s happening in the world

#How to choose a startup accelerator — no matter what’s happening in the world

Accelerators form an integral part of many entrepreneurs’ journeys. By definition, an accelerator is a fixed-term program that usually lasts anything from three to 12 months. These programs offer a series of benefits, including education, mentoring, and networking. Some may offer investment to startups and on occasion, accelerators will take equity in the companies they accelerate.

With more than 7,000 of these programs spread out across the globe, entrepreneurs truly are spoilt for choice. But faced with this insane amount of possibilities, how are you supposed to choose the right one? It’s easy, focus on yourself. Hear what other startups have gained, how they’ve made the most of accelerators, and then choose the right program based on your current needs.

There are plenty of success stories that prove the extent to which accelerator programs can benefit a business. For example, the sharing economy giant Airbnb is arguably one of the most high-profile companies to have gone through a startup accelerator.

If you’re now at the stage of your business journey when you’re thinking about possibly joining an accelerator, it’s important to research the market and find a program that suits your business needs — just because a program has had success stories doesn’t automatically mean it’s the right fit for you.

No entrepreneur should enter into an accelerator program lightly; you need to really think about what will be expected of you as a participant and be clear on what you will personally get out of the program.

You also need to — given the current circumstances and business upheaval brought about by COVID-19 consider whether it’s worth entering into a commitment of this magnitude during a global pandemic.

[Read: Why this security engineer loves working in infosec]

Before digging in

Now, it doesn’t take a genius to figure out that the best way to know what startups need and could get from accelerators is to speak to actual founders whose startups have gone through an accelerator. Luckily for me, TNW is a founding partner of the DMS accelerator program, and this meant I had easy access to a host of alumni who were able to share their experiences and insights.

Before we move on to this, though, it’s probably a good idea to share some context about the program and to help you get a better understanding of the journeys of the startups I spoke to.

Basically, Data Market Services is an equity-free program that aims to overcome growth obstacles facing startups operating within a fragmented European data market — helping founders with pain-points such as privacy law, intellectual property, and investment opportunities. It’s also worth pointing out that it’s funded by the European Commission. 

As part of the program, 50 startups receive free entrepreneurial training, acceleration, and mentoring for six months. Before the pandemic, 60% of the program took place online, with the remaining 40% spent attending startup events across Europe. Now it’s 100% online, meaning founders receive mentoring and the opportunity to promote their business and network with potential partners from the comfort of their own homes.

Then finally, the top 10 startups are invited to an exclusive DMS Bootcamp composed of workshops and mentoring sessions. All of this is recorded and businesses will walk away with a promotional video — which can be a cost-effective way to bolster marketing efforts.

But now let’s move on to the good stuff.

Signing on the dotted line: What you need to know

All in all, DMS seems to have struck a good balance for its cohort companies but founders still need to consider why they want to join the specific program before applying.

The thing to note here is that much of what you had to think about as a founder in the pre-COVID-19 era still applies:

  • Take time to ask yourself why you want to join a specific program. For example, are you just after brand-building opportunities or do you merely see it as an opportunity to show off in the industry? If it’s the latter, you should probably reconsider.
  • Don’t make the mistake of underestimating the commitment required from you and your team and once you’re clear on this make sure it fits around your other responsibilities. No one likes a distracted founder — and especially during times of uncertainty.
  • If the program you’re interested in offers funding, it’s likely that the accelerator will like to see some type of return. Figure out who the investors are, what kind of portfolio they have, and why they’re interested in backing a business like yours.
  • Last, but by no means least, make sure you and the organizers are on the same page when it comes to success metrics. There’s absolutely no point in working together if you’re not working towards a common goal or objective. Your company is your baby so don’t jeopardize your growth.
Credit: Daniel Reiche
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