Bringing up a startup business is unexceptionally difficult; it takes a great idea and a bag full of dreams to disrupt markets and generate success. Entrepreneurs require access to capital, mentoring and resources to grow vigorously. These lifelines are seemingly impossible to track down and which is the main reason why most of the startups fail within 3 years.
Business accelerators share similar characteristics as incubators, these are organizations that provide support services and funding opportunities for startups. The main aim of an accelerator is to convert business ideas into prototypes or products that are market-ready in a matter of months. Initial funding and expertise provided by sponsors to a small group can demonstrate a great product idea. In return, a small equity stake, which might be around 6 percent will be taken by the sponsors.
On the other side, accelerators are a treasure truck of resources for startup owners. Keeping in mind, these organizations are run by experts who make a living by helping businesses to overcome basic hurdles. Startup owners benefit a lot by connecting with their business peers and generate a friendly competition to boost development. A potential drawback of joining a business accelerator is that startup owners are generally handing over equity in their companies.
How do accelerators differ from incubators? this is a confusing question most startup owners get these days. Like mentioned earlier, accelerators are like incubators, but do differ a little bit. An incubator provides young businesses or startups with networking, mentoring and resourcing opportunities
Key characteristics of a business accelerator:
Fixed timeline, start and end date.
Work with fellow startup and entrepreneurs.
Offering mentoring support to the startups.
Education program to acquire knowledge.
A selection process to ensure the startups selected are the ones with more potential.
If a business entity doesn’t have these features, it cannot be defined as a business accelerator. Though these businesses could still offer programs similar to accelerators such as incubators and aim to achieve similar results. The real value an accelerator program can offer is ‘social capital’, it is the value of all stakeholders involved in an accelerator program. It is also important to mentors.
SatyamSri is one of the best startup accelerators in India, a startup accelerator offering investments, mentorship, networking opportunities and education in return for equity. We provide a fixed timeline, mentoring support with a suitable startup accelerator program to ensure the success of the startups.