They empower entrepreneurs to grow their startups with an injection of capital and access to one-of-a-kind mentorship programs. 

This article will lay out everything you need to know about startup accelerators so you can decide if they're right for you.

What Is a Startup Accelerator?

A startup accelerator is a program that provides support to budding businesses.

Besides being a source of financial support, they supply leadership advice, workshops, and help with networking. 

Startup accelerators appeal to companies for a few reasons: 

Funding

The majority of accelerator programs provide seed funding. Using the iso audit checklists for developing a good business plan, investors can receive the returns associated with their cash flow and know exactly where a startup stands in terms of all its projects.

Networking

Startup accelerator programs allow small business owners to expand their network connections in their industry. 

Mentorship

One of the chief selling points of accelerator programs is their formal mentorship opportunities. 

A company owner can receive invaluable “insider” advice. For example, knowledge about how virtual phone systems providers can upgrade systems in real-time. 

Validation

Here we’re referring to that all-important “stamp of approval” awarded to companies lucky enough to be selected. 

Pitch day

Your program will culminate in a demo day. Once you’ve built your scalable early-stage ventures, each team gets to promote their startup to investors. This is great practice for the future.

How Does a Startup Accelerator Work?

Startup accelerators run for a fixed duration. Schools evaluate each startup during a period from three to six months. Then investors select a few to participate in the accelerator program. 

Accelerators look for emerging startups with rapid growth potential, and that means small companies with few investors. 

A formidable minimum viable product (MVP) is a must in applying to any top program. 

Whether a startup contender gets chosen depends on:

Teamwork

Among the principal measures startup accelerators use to assess applicant's' potential is the resilience of the  team. Adaptability in the face of disruption goes a long way as a predictor of whether the team can succeed in the long run.

Ideas

Although no guarantee of future success, a fresh and innovative idea grabs investors' attention. They’ll stress test your business plan and thoroughly vet ideas.

Traction 

A promising startup should evince progress over time. Investors covet growth-oriented businesses that exhibit scalability and potential.

Entrepreneurial work ethic

Sure, the implementation of the latest technology - pitching a cloud-based contact centre platform will yield better results than a regular telephone, for example - allows startups to fit the market’s current needs. But does your team have the entrepreneurial spirit and drive to meet the challenge? 

Is a Startup Accelerator Right for You?

The pros

Growth

Accelerator programs provide unparalleled access to early-stage innovation and investment opportunities that allow you to scale your business. 

Feedback

Business relationships, experience in growing startups, and process excellence are just a few advantages advisors bring. They’re a bridge between outside innovation - perhaps with the lowdown on the latest scaling-up tools, such as VoIP phone system for small business.

Prestige

Being part of a top accelerator program signals to potential investors that you have the skill, spirit, and preparation that it takes to thrive. 

Capital

Apart from seed investments, another advantageous outcome of entering an accelerator program is access to venture capital. 

The Cons

Losing Equity

Startup accelerators provide early-stage funding and mentorship in exchange for equity down the line. 

Conceding Control

In return for leadership and advice, you cede some control over the business, how to prepare for a recession and your ideas about what works.

Rapid Expansion

By choosing to participate in a program, you’re committing to scaling your business in a short period - a matter of weeks. For some companies, slow growth is the key to long-term success.

Distractions

A startup accelerator’s programmed events and intensive mentoring can sometimes prove detrimental to businesses and get in the way of the work. 

Relocate

Programs require your undivided attention. That means relocation to their campus for a few months. 

Consider a Pre-Accelerator

One option for entrepreneurs with room for growth before they apply for an accelerator is a pre-accelerator. These programs offer plenty of benefits, including:

Prototype

Work on creating your minimum viable product that you need to apply for most accelerators.

Incubate your idea

Workshop opportunities allow you to flesh out your idea into a viable business plan.

Make connections

Coworking time with like-minded entrepreneurial souls is where unexpected conversations can occur. 

Learn from veterans

Coaches and mentors are successful in their own right. They’ll put you through your paces, scrutinise your business model and share the insights that drove their success. 

How Can You Apply for a Startup Accelerator Program? 

You have several options if you feel an accelerator program works for your business. 

As more entrepreneurs have caught on to the benefits, the number of programs has grown dramatically.

Make sure the program you have your eye on has produced concrete results in terms of funding and a record of successful startup graduates. 

Finally, reflect on whether the accelerator offers a relevant network and experts related to your industry. 

Get ahead of the competition

The competition to get accepted into a program is fierce. 

And that’s before the real competition to impress potential investors even begins. 

Remember, though, that startup accelerators aren’t the be-all and end-all. Indeed, they are only one among many alternative routes to growing your business.

While accelerators offer the benefits above, the key to making the right move is understanding which, if any, is a good fit and weighing up your chances of success. 

But whatever path you choose, it’ll inevitably take a lot of hard work, so you better get started!