Honest advice from a seasoned accelerator portfolio manager
There is a sea of information out there on how to get accepted into an accelerator program, how to pitch your startup, and how to avoid losing the majority stake in the process. I am here to provide a few insights on how to actually choose which accelerator to join, and how to get the most out of it once you do, especially if it’s your first accelerator rodeo.
Warning: May include some accelerator locker-room talk, reader discretion is advised.
Should you even join an accelerator?
Considering that your startup is at the right stage, and you believe that you could benefit from a particular acceleration program, what it really comes down to is your team’s readiness. You need to make sure that you have the resources to actively participate in an accelerator to reap its benefits. This doesn’t mean you should sacrifice a whole team member to the accelerator, in fact, that would be extremely counter-productive. I’ve seen this happen when the head of partnerships/business development manager who got you into the accelerator ends up being the only team member involved. In very rare cases does this lead to anything constructive. Instead, think of the accelerator as a partner that you will work with hand-in-hand for the duration of the acceleration program (several weeks to several months).
You should be ready to be involved as a founder, and your relevant team members should have the time and capacity to get involved as needed. This includes keeping an eye on all that the accelerator has to offer, and thinking creatively about how you can leverage the resources and opportunities that are available.
How to choose the right accelerator for you
Assuming you understand what your startup needs at this stage, you’ll be choosing from the accelerators that closely match those needs. With deal terms being equal (protect your equity at all costs!), it really comes down to one thing…
Brand awareness
Yes, if you’re considering several accelerators, just choose the strongest brand name. Unfortunately, this still matters to investors and potential partners, and your startup can get a serious boost just from having a top tier accelerator logo in your pitch deck.
However, be wary of accelerators that accept anyone and everyone (there are plenty of high-profile accelerators guilty of this). Their reputation precedes them, and their portfolio projects quickly lose preferential treatment on the market, so being associated with them may not necessarily make your project stand out as much as you’d hope. You’d often hear the following exchange between investment managers:
– “This startup has XYZ Capital in their captable”
– “Yeah, but XYZ just takes anyone. Remember they had that tacky NFT project that went bust”
Ask for references!
Why: It’s important to speak to other accelerator participants or alumni to learn what to really expect. While most accelerator programs look promising, in reality they may not add any significant value to your startup’s growth, at least in proportion to the time and/or equity that you’ll be allocating. In my experience, less than 20% of startup founders ask accelerators for references. It’s important to understand what you’re getting into and what to expect in return.
How: Have a look at the portfolio companies on the accelerator’s website, and see if you know any founders that you can reach out to and ask for feedback. If not, ask the accelerator representative to put you in touch with a couple of their alumni. Ideally it should be a startup in your industry, so you can assess the accelerator’s effectiveness in boosting startups in your vertical. Typically the accelerator would have a couple of success cases in their back pocket – these are startups that happened to do well during or after the acceleration program, and are on good terms with the accelerator. These founders are ready to shill the accelerator to other founders, and while it’s good to keep this selection bias in mind, the existence of success cases can in itself differentiate a decent accelerator from hundreds of empty shells.
When: You can ask for references at any point before signing with the accelerator, however the earlier you do so the better. Most startups are so focused on pitching themselves to accelerators in the introductory phase, that they forget to do their own due diligence. Ask about acceleration program details, typical deal terms, expected results, past success cases and references. This also sends a good signal to the accelerator that you’re selective and careful about which programs you join, raising your perceptive value.
Lastly, pay attention to what the accelerator promises you, and include everything in your agreements, no matter how small. If you have specific asks or goals, don’t shy away from sharing them with the accelerator manager. Bonus points for doing so during the negotiations stage, as you’ll be more likely to get real commitments from the accelerator that just wants to seal the deal.
So you’ve joined an accelerator
Ok you’re in! Now what?
Be proactive
The worst thing you can do is sit back and relax. Now is the time to grab every opportunity available and track every deliverable that was promised to you. Think of the accelerator as a restaurant menu, the food selection is there, but it won’t magically appear on your plate. You’ve gotta ask for it. And get the waiter’s attention, because there are 30+ of you founders and only 1-2 overworked waiters portfolio managers. Which brings me to the next tip…
Be pushy
Yes, we hate that guy, but guess what? You will be dealt with first because we want to get you off our backs. Keep in mind, you’re giving up your company’s stake here, it’s no time or place to be shy. Not only will you get your answers sooner, but you will also be on our minds anytime a limited opportunity arises.
– “We have 3 slots for this pitch session at ABC conference, whom should we invite from our portfolio?”
– “This guy. He’s always texting me asking when we will put him in front of investors, we have to give him something.”
Remind us. Things can get lost in the chaos. Don’t hesitate to ping your portfolio manager if you don’t get an update regarding your request within a week (or sooner, depending on the item’s urgency).
Share your updates and needs!
It’s astounding how many startup founders expect the accelerator team to read their minds and predict their needs at a given point in time. Got shortlisted for an award? Planning to attend a Web3 summit in Dubai? Need infrastructure partners to do a pilot? Tell us! Chances are, we can accelerate whatever you’ve got in the pipeline. Be it a marketing boost for your award recognition, introducing you to investors in person at a conference, or partnering with the right infrastructure providers to support you.
If you’re 100% sure it’s not something we could help with… Still tell us! You’d be surprised at the amount of random opportunities that accelerators have access to. Even if it’s not something we can provide instantly, we will keep in mind your goals and needs as we network and build new partnerships.
Think of it as being in a relationship. You want to openly communicate with your partner about your needs and expectations, not assume they know what you have in mind and get all pissy when those expectations aren’t met. The more you share, the easier you make it for your partner (aka portfolio manager) to meet your needs.
Be as specific as you can, and aim high. Worst case scenario, your portfolio manager will propose the next-best opportunity that could still exceed your expectations.
Tell us if you’re struggling.
We’ve seen it all, from 180-degree pivots to startups completely folding. We’ve also seen 90% of the founders conceal the fact that they’re struggling until it’s too late for us to do anything about it. So don’t hesitate to tell us if you’re having trouble fundraising and are running out of cash, need to switch to a new legal entity, or are struggling to get a licence in a new geography. And tell us early on! We’ll make it our top priority to get you in front of investors, introduce you to trusted legal experts, or connect you with founders who have “been there, done that” and can assist you. The sooner we know your pain points, the higher are the chances of us being able to help. Make the accelerator team work for you!
Even if your requests are not included in the acceleration program, remember that we are invested in your startup’s success and will go beyond our written commitments to support you.
That brings us to another important reason why you should share everything you have going on…
It gives us hope for your success!
A typical accelerator, incubator, or venture fund invests in a bunch of startups and hopes for at least one of those startups to skyrocket. As we watch the portfolio companies’ progress during the acceleration program, there are usually a handful of leaders that perform better than the rest. How do we know this? They tell us. They tell us every time they’ve made a new key hire, secured a new partnership, launched a new feature, etc. Moreover, they tell us what they’re planning to achieve. And seeing you gain positive traction encourages us to double down and focus our resources on your promising venture, in hopes that it’ll join the roster of our success cases. This means going above and beyond the standard acceleration deliverables. So in addition to asking for stuff relentlessly, be sure to share any progress on your business and product development.
Bonus points for sharing your updates with other accelerator participants. Accelerators usually run cohorts, meaning you will be in a batch of 10-30 startups going through the same acceleration program.
Don’t underestimate your fellow cohort participants.
Connect and network with the other startups in the accelerator. Your accelerator will normally have a dedicated space where founders can interact. Share your blurb, your updates, offer your services, and ask for anything you need! There would typically be founders who are a few steps ahead of you, who will be happy to provide feedback, help with introductions, and offer some guidance. Ask the cohort to vote for your product on ProductHunt, or explore collaborations to combine your offerings for your end users. Who knows, there may even be a potential client there who’s interested in your b2b product.
Be pleasant to work with
Your best chances of getting preferential treatment is being a pleasant person to work with. What does this mean? Transparency, open and regular communication, showing appreciation, a positive attitude, and staying engaged throughout the acceleration program. Also acknowledging that the accelerator team is often stretched thin. If you’re receptive and understanding, you’ll be the first founder to be offered ad-hoc opportunities, as well as long-term benefits beyond the accelerator program. This ranges from follow-on investment offers, extension on the accelerator’s services, and other support beyond the outlined accelerator commitments and timelines. Make us want to help you.
The double-edged sword of being difficult
The other category of founders that can get preferential treatment are the difficult kind. This type is obvious early on, they’re picky, inflexible, demanding, and critical. I’ve seen relationships with these types of founders go one of two ways, but always end the same. The accelerator team will make it their priority to keep the founder satisfied.
Accelerators want to protect their reputation… for the most part.
After a certain point, portfolio managers realise their efforts are better spent on more collaborative founders, and will focus their attention on them. Unless difficult founders change their approach, they will eventually find that they are provided the agreed-upon deliverables that satisfy their deal terms on paper, and any expectations that are not met beyond that are no longer catered to.
Don’t put all your eggs in one basket
Do not drop the ball on your startup development outside of the accelerator program. This is actually the time to start hustling harder and revving up your business development, fundraising, product launches, marketing, etc. In fact, your activities outside of the accelerator might be a make-or-break factor that determines your acceleration success. The accelerator can only amplify and accelerate whatever it is you’re working on. Plus, there is only so much an accelerator can give you, and no one knows what your startup needs better than you do. Stay active on all fronts, because the more you do outside of the accelerator, the more the accelerator can do for you. Reach out to those partners, then have the accelerator nudge them to prioritise your project. Pitch to VCs, and ask the accelerator to gain honest feedback from them, so you can rework your pitch. Launch that new feature, receive that accreditation, and ask the accelerator to make your milestones newsworthy.
Add value to the accelerator
Say you got ahead of other cohort participants in some domain, and you see them struggling in that area. Share your experience and expertise with them! This gets noticed by the portfolio manager, and they’ll go out of their way to support you and offer you new opportunities. Or let’s say you connected with someone who could be a relevant partner for the accelerator. Ask the accelerator team if they’d like an introduction. Not only could it enhance the overall acceleration program, but such gestures are fairly rare, and go a long way.
How to get the most out of the accelerator
There is a common perception of accelerators being similar to Ivy League universities, where the alumni’s success is predetermined by the selection process rather than the institution’s value-add. While there is some truth to that, it does not account for the vast majority of startups disappearing into the abyss post-acceleration. So what separates the success cases from the rest? They max out the accelerator experience.
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Tap into the accelerator’s network of mentors, partners, and investors. Founders often hesitate to connect with someone until they’re ready to collaborate. What I would often hear from founders upon proposing an introduction is, “Thanks for the opportunity, but we will need this [service/partnership/intro] in 6-9 months, we’re not ready yet.” No! Connect with the partner now, tell them about your project, and come back whenever you’re ready. Use the accelerator to build relationships before you actually need them.
Most founders know not to pitch to their dream investor before they’re ready, as you can only make the first impression once. However, when the accelerator offers to make an introduction, they believe you’re ready. And they wouldn’t want to tarnish their reputation by forcing their portfolio projects onto their partners unless they’re sure it would be a win-win for all.
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Take advantage of relevant infrastructure and services available to you. Additionally, ask if you need something that’s not explicitly presented to you (*cough* cloud credits *cough* ). The accelerator might have more up their sleeve than what they can offer to the entire cohort, and you won’t get what you don’t ask for.
- Participate in events, pitch sessions and demo days. Use these opportunities to gather feedback, pivot, fundraise, onboard clients and partners, etc. If it’s not a top priority for you as a founder, engage your business development manager. Better yet, make the accelerator team members your biz devs. They are often present at conferences around the world, and can pitch your startup to relevant investors or partners.
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Media and marketing: Accelerators often provide media exposure to their portfolio startups as a part of the program. Get your marketing manager to stay on top of accelerator events and partnerships, to spot opportunities for additional exposure. E.g. The accelerator arranged for you to pitch at a side event of a large conference. Find out if the event organisers can mention your startup in a press release or social media post promoting the event.
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Network, network, network. This includes your fellow cohort participants! This feature of the accelerator is often overlooked, but the founders you’ll have access to can bring as much value to your development as the external accelerator network.
Post-acceleration
Congrats, you’ve completed the acceleration program and it hopefully propelled you to new heights. What next? Well, there are a few ways you can extend the benefits of having participated in the accelerator, beyond placing its logo on your landing page.
Join the official alumni network
Most accelerators would have a channel where they announce new opportunities for their alumni startups, and where the founders can interact with each other. Accelerator perks may include access to conferences and pitch sessions, workshops, or special offers from tech partners that they can extend beyond the current cohort. Don’t expect too much, because the new accelerator cohort will have priority, but there are often more opportunities than you’d expect.
As long as the accelerator manages to maintain engagement among its alumni, there are lots of benefits to be reaped from the startup community itself. Lifehacks, connections, and services are often announced or shared upon request. If the official accelerator channel is a one-way street and does not enable alumni participation, ask your accelerator manager if there’s an unofficial channel where you can connect and network with your fellow alumni.
Stay in touch with your portfolio manager (or whomever was your main point of contact during the acceleration program)
This is more of a general networking tip. You don’t know where your portfolio manager might end up next (could be some VC you’d like to bag), or whom they could connect you with. This person is deeply familiar with your startup, was invested (quite literally) in your success, and is probably rooting for you to do well. If you were on good terms during the acceleration program, they’ll be happy to support you beyond it, especially if your requests are low-effort. They are actively networking with other partners and VCs across the globe and, as long as you’re in touch, they will actually think of you when relevant opportunities arise.
Finally, keep in mind that accelerators can only fast-track your progress and enhance the success that you were already headed for. It’s not a magic pill that will suddenly make your product appealing to end users and your business model seductive to investors. They can bring tremendous value if used right, but it is you who has to do the work. As with most things in life, it is what you make of it.