MindsView participates in Accelerator
Published on ~
March 23, 2022
We were selected to participate in 8200's unit Accelerator!
This will greatly help us achieve our goals faster and more efficiently. But what is an accelerator? They are are fixed-term, cohort-based programs, that include mentorship and educational components and culminate in a public pitch event or demo day. While traditional business incubators are often government-funded, generally take no equity, and rarely provide funding, accelerators can be either privately or publicly funded and cover a wide range of industries. Unlike business incubators, the application process for seed accelerators is open to anyone but highly competitive. There are specific types of seed accelerators, such as corporate accelerators, which are often subsidiaries or programs of larger corporations that act like seed accelerators.
See also: Business incubator
- The application process is open to anyone but highly competitive. Y Combinator and TechStars have application acceptance rates between 1% and 3%.
- Seed investment in startups is usually made, in exchange for equity. Typically, the investment is between US$20,000 to US$50,000 in the US, or GB£10,000 to GB£50,000 in Europe.
- The focus is on small teams, not on individual founders. Accelerators generally consider that one person is insufficient to handle all the work associated with a startup.
- The startups must "graduate" by a given deadline, typically after 3 months. During this time, they receive intensive mentoring and training, and they are expected to iterate rapidly. Virtually all accelerators end their programs with a "Demo Day", where the startups present to investors.
- Startups are accepted and supported in cohort batches or classes (the accelerator isn't an on-demand resource). The peer support and feedback that the classes provide is an important advantage. If the accelerator doesn't offer a common workspace, the teams will meet periodically.
The primary value to the entrepreneur is derived from the mentoring, connections, and the recognition of being chosen to be a part of the accelerator. The business model is based on generating venture-style returns, not rent, or fees for services.
Seed accelerators do not necessarily need to include physical space, but many do. The process that startups go through in the accelerator can be separated into five distinct phases: awareness, application, program, demo day, and post demo day.
Accelerators provide enough funding to get a company to ‘Demo Day,’ from which point the startup is on its own.