How to choose the accelerator programme that’s right for you
In this guide you’ll learn what an accelerator programme is, what you should expect from one and how to choose the best accelerators for you and your company.
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If you are a startup founder, accelerator programmes can be an excellent way to upskill as a founder, help you become a more effective and investable leader, fast track the growth of your business and support you in accessing valuable networks. Some accelerator programmes also provide early investment into your startup and can connect you into investors to provide follow-on funding.
What is an Accelerator?
“Accelerator” is a name given to a programme designed for startup or early stage businesses that helps them to “accelerate” their growth.
They can be delivered in a particular location or online to cohorts (groups) of companies.
Generally accessing an accelerator starts by submitting an application during an application window, although some may offer the opportunity to apply throughout the year.
“Accelerator” is a name given to a programme designed for startup or early stage businesses that helps them to “accelerate” their growth.
They can be delivered in a particular location or online to cohorts (groups) of companies.
Generally accessing an accelerator starts by submitting an application during an application window, although some may offer the opportunity to apply throughout the year.
Spend some time in discovery mode to get familiar with accelerators that are out there that could be suitable for you and your business.
As well as the resources in the Founder Hub, Linkedin and Google are good places to start. Most accelerators will have a page you can follow on Linkedin so you can be notified as opportunities open up. In Google you’ll find curated lists of accelerators.
When you are researching ask yourself:
- Where am I prepared to attend a programme? Does it need to be local to me? In the UK? Or could there be benefits in attending a programme overseas?
- Does this accelerator cover the sector that my business is in, for example health-tech, e-commerce or hardware?
- Is my business at the right stage for this accelerator? If your business is still only an idea you may want to consider a venture studio or a programme that focuses on helping founders develop an idea and turn it into a business. Other accelerators may want to see evidence that you have a minimum viable product (MVP) and some traction in the market and not just with product development.
- What other qualifying criteria are there for this accelerator and would we qualify? For example, some look at the social and environmental impact of your startup.
- How intense is the programme on offer and what are the time commitments required of me and my co-founding team? Are we prepared to dedicate that time and effort whilst we’re taking part?
What should I look for in a good accelerator?
The quality of accelerators vary widely. Some accelerators accept every company that applies and offer generic and light touch support whilst others are looking for companies that will be attractive to investors as they grow and will spend time screening for companies that fit their qualifying criteria the best.
Once you’ve identified accelerators that you could apply for:
- Review what they offer. Identify what outcomes you would like to get out of a programme; a successful fundraise? Develop your skills as a founder and business leader? Position your company for strong revenue growth? How could their programme support you and your team with the challenges and opportunities you are currently facing and expect to face over the next 12 months?
- Read reviews about the accelerator on their website or on Linkedin. What are people saying about it? What outcomes have other founders benefited from who’ve been through the accelerator? If you can, speak to some of their alumni.
- Assess their offer. What are they asking for in return for a place in their accelerator programme? What networks can they open up and provide access to? Is there a particular technology that the accelerator could help you to unlock? Is there a fee for taking part? Or are they looking for equity in exchange for the programme? If they offer investment, what are the terms of the investment? How does this compare to the terms other accelerators and early stage investors offer?
What should I expect to commit?
An accelerator programme can provide you as a founder with the opportunity to invest in yourself and lean into the strategic aspects of your startup; aspects that can define and massively strengthen its value proposition.
Without an accelerator (unless you have significant startup leadership experience) it can be easy to get lost in the weeds of the day to day or stuck in cul-de-sacs and sacrificing the growth potential of the business. Think of a boat that doesn’t have its sails up: accelerators can fast track your learning curve, equip you with an essential founder skillset and provide you with frameworks for shaping and developing your startup.
In addition they will often provide a variety of perks from discounts on your tech stack, access to valuable investor networks, free access to skilled mentors who can support your business in a fractional capacity and grant opportunities.
But Accelerator programmes require your commitment and focus, so try to see it beyond a purely transactional experience. There should be lots of chances for you to extract special opportunities but some of the more impactful aspects are directly proportional to how much effort you are prepared to put in.
Building relationships with others takes time but some of the most valuable outputs from an accelerator can be the relationships that you develop with your peers; fellow founders that understand what you’re going through, share their own experiences and mistakes to help you avoid making the same and can help make the founder journey considerably less lonely.
Consider this carefully when applying, especially when there is a cash investment on offer. Remember you are applying for an accelerator programme not just for cash investment.
Do Accelerators offer cash investment?
Some accelerators offer equity, or convertible loan notes, as cash investment for companies on their programme.
Sometimes this investment is offered upfront to all companies accepted to the programme. Others offer investment to select companies on completion of the programme.
Where equity investment is offered, ask around, to fellow founders, ecosystem stakeholders or mentors, their thoughts on the offer. Do the terms offered seem fair and justified? How will their investment sit on your cap table and where is the cash coming from (e.g. angels, a fund or a corporate)? What are their motivations for investing?
Consider also if you are building a business with a large addressable market and the potential to scale significantly. This is what equity investors are looking for and they are looking to receive a return on their investment when your business has an exit event.
If this is not the pathway your business is on then it’s possible that conventional equity investment is not for you. Instead keep an eye out for accelerators offering equity free grants; these may be offered by philanthropic, corporate or government organisations (such as Innovate UK) who want to encourage innovation in a particular area or by certain under-represented groups of founders.
To summarise
Accelerators can be a time sink and somewhat of a waste of time if they are more about promoting a particular corporate’s innovation image and brand than about supporting the startups taking part.
Use your discernment and spend time researching options available. But with wise choices the right accelerators can open up game-changing new opportunities, provide the first investment cheque into your company, catalyse follow-on investment and be the difference between success and failure.
