Perhaps some business people are wondering if accelerators are good for their business or not. Is this perfect for startups or only for advanced businesses? If it fits for business, then what would be the benefits the business can get with accelerators? We will answer these questions on this post.
What is Accelerators Means for Business?
Accelerators are for perfect for a startup business. The startup accelerators are the short-term programs, which effectively offer an intense mentoring by the experts, as well as other resources for the selected group of startup businesses or companies.
Accelerators are also the organizations that offer a range of supportive service, as well as funding opportunity for the business, particularly the startups. They are working by enrolling the startups in the month-long program to offer a mentorship, supply chain resources, and office space. In addition to that, the business accelerators are offering access to a capital and investment as an exchange of the startup equity. The startups typically graduated from the accelerator program after 3 to 4 months, which may mean that the development projects are very intensive and time-sensitive.
The main reason why accelerators have this massive popularity explosion to the world is that they are effectively designed to offer the best of both worlds, which can be benefited not just by the startups but also by the investors.
What are Types of Accelerators?
There are two different types of accelerators. One was the for-profit private investment accelerator (IA) and the other one is the non-investment accelerator (NIA). The IA is taking an ownership stake in the portfolio of the companies as an exchange for the services and the modest capital amount. While NIA is seeking an effect, which is measured in terms beyond the gains of the startup direct pecuniary. In addition, NIA doesn’t take an equity ownership in the startups but rather often relying on the private or public charitable support to fund the operations. The objective of the NIA will include entrepreneurial education, economic development, or another goal for the social purpose.
What Benefits Your Business Will Get from Accelerators?
Using the accelerators, you can effectively gain an edge in your business. What are those? Continue reading…
- Business Acceleration
Your business can have a tremendous shift on the result of this program. The accelerator program is offering the startup an opportunity to dedicate an attention-focused time to capitalize on the education, advice, and connection.
- Accelerator Network
You are engaged in broad networks of startup mentors, venture capitalists, angel investors and other service providers from participating firms.
- Experts Mentors
You are matched with the volunteer mentor with the most relevant experience.
Accelerators are being featured in media and then hosted large public events like the typical Demo Day culmination at the end of the program.
- Accelerator Team
You can work with partners as a team and participate in sharing value.
- Raising Capital
Your business’ credibility will escalate while having an ability to raise a capital.
So, this simply means that all startup businesses can take advantage of what accelerators can do. If you are thinking of a new business idea but lack resources and expertise, then accelerators can help you make that idea come to life.