The Pros and Cons of Startup Accelerators
by Startacus Admin
Some other things to consider
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No two accelerator programmes are the same, therefore it can be difficult to gauge what level of benefit you can expect to receive from your participation.
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Nothing in life is free and that goes for accelerators too - most will provide you with their services in exchange for an equity share in your businesses but some may also
require an upfront fee. -
The level of equity share that accelerators require varies significantly from programme to programme, some may ask for 5% and others 50%, it's vitally important that you fully consider the effect that dividing up your business will have.
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Some accelerators have a built in clause that they have the right to purchase all of your business after a certain period of time, for some this will be quite a welcome strategy, for others it will not.
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Accelerator programmes can be lengthy processes (anything up to a year) during which you may have to relocate far away from where your business is based.
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Programmes are very VERY selective about the startups they take on and being rejected by one can damage your self esteem and lower your confidence in the business you are trying to build.
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It can be very easy to apply to accelerators willy nilly and hastily accept any offer that comes through without fully considering the implications and whether it’s the right one for you.
Needless to say this is by no means an exhaustive rundown of the pros and cons of startup accelerator programmes. Each is unique and has its own merits but the most important thing you can do is make sure you fully understand the terms and conditions before applying and that way you can be sure you are giving yourself and your business the best chance of success.
If you are considering entering your startup into an accelerator programme be sure to keep an eye on Startacus as we will be featuring lots more innovative programmes in the near future & you might want to take a gander at recent accelerator themed posts...
- Scottish accelerator goes looking for new chiclets
- Collider13
- Accelerator Academy - Listen-up Start-up!
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Published on: 24th September 2013
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