Now that you have a brilliant idea for a startup, you may be thinking of enrolling in an incubator or accelerator to jump-start your path to success.
Let’s take a closer look at the potential justifications for your application and see whether the advantages outweigh the disadvantages before you jump in.
Getting funds
For startups thinking about using an accelerator or incubator, this is usually the main attraction. In exchange for equity, several programs give pre-seed or seed capital, which might be a quick start-up compromise. Nevertheless, keep in mind that investment has conditions: accelerators don’t offer the most generous offers, and you’ll be giving away a significant chunk of your firm without the option to negotiate the agreement.
Think about raising money in another way if you have faith in your proposal and can demonstrate its likelihood of success.
Pitch to angel investors, apply for grants, crowdfund, or approach VCs (who are actually extremely eager to meet). Because they offer more than just money, you might be able to negotiate better terms than with accelerators, who “take more”. Before quitting your job to try the founder life, though, if you’re not yet convinced in your idea, look for inspiration and validation elsewhere.
Establishing a network
It may be very helpful to be a member of a startup community, and accelerators can connect you with mentors, investors, and other accomplished people who may have the supplementary talents you need to realise your idea. But is an accelerator really necessary to meet them?
You can meet others who share your interests through a variety of live and virtual events, online groups like Y Combinator, and social networking sites like Twitter, LinkedIn, and Discord. Building relationships requires bravery, initiative, and nurturing; also, no one will provide their time or abilities for free unless they have faith in you; nonetheless, this is not going to change within an accelerator.
The Branding
Your startup can gain credibility by being affiliated with a well-known accelerator, such as Y Combinator or Techstars, and it can also get media and investor interest. Customers, however, are more interested in your product than your accelerator, let’s face it. Irrespective of your affiliations, early employees will join you due of your vision, team, and remuneration. The final judgement that investors will make will be dependent on your team and traction.
It’s not absolutely necessary to succeed, even though it can be cool to say you’re a part of an accelerator.
Attracting clients
You don’t require the assistance of an accelerator if you are already aware that you must test your idea among clients. Put your hands to work and be inventive, even if it means finding the fortitude and confidence to speak with actual paying consumers. Don’t rely on the accelerator to do it for you if you don’t know where to begin or how to approach potential clients. Instead, work on improving your communication and prospecting abilities.
For inspiration
Building a startup is challenging, so do you really need an accelerator to keep you motivated if you have faith in your concept and are confident you will succeed? If it’s energy you’re after, sign up for a co-working space or take part in startup activities. If you lack self-discipline, seek for internet resources or ask a buddy to help you stay on track with your objectives. Keep in mind that no accelerator in the world can get you motivated if you don’t already possess it, and some people find their high-pressure approach to be unsettling and ineffective.
With regard to the mentorship
Accelerators offer solid frameworks with a wealth of activities and advice that can undoubtedly be helpful if you want to “accelerate” your knowledge by drawing on the expertise of the professionals. However, there are alternative ways to learn from others’ failures, including mentoring programmes from seasoned business owners, product designers, and venture capitalists that are less expensive, provide more face time, and can be more suited to your needs (for example, female founders or sector-based).
Consider the cost-opportunity before using incubators or accelerators to hasten your entrepreneurial journey. Depending on the strength of your idea, your business experience, your technical talents, your network, and finally your confidence, you might be more successful with a different approach.
