Startups who grow other startups are the modern day accelerators
- Real Estate Companies with idle space want to start an incubator/accelerator
It is appreciative and heart warming to find that however they need to rely on trust worthy incubation manager to do so..
Now what happens to the incubator if the incubation manager gets another real estate company support and who pays higher percentage of equity?
The first incubator may risk of shutting down..
2) Anyone who has good experiences in industry can start an accelerator program with support of senior colleagues and industry blessing.. and sometimes get an early success of companies getting invested..
It is a good sign.. but what happens if an accelerator is found in almost all locations of the country. Is it training centers renamed as accelerator?
I would be helping individuals for over 2 decades now.. for their job goals, coaching them and found many individuals really do not ever wish to be entrepreneurs but if no other option exists, they do not mind attempting to run a company
The other individuals, I observed were ones who are at very senior positions and felt they can actually do it better then others.
As there is a shortage of real good mentors, hence opportunities exist but at same time a word of caution: Investors are impressed only if the startup ensure product reaches market and has good traction so the key success to accelerator is to focus on market
3) Do Accelerators and Incubators really get benefited by the equity model?
They should .. if the startups can scale up well..
But as a mentor, I can safely say that the mindset of an entrepreneur is to save equity.. Most of entrepreneurs guided by that.. and with complex term sheets and vesting and n number of clauses, find entrepreneurs spending time with lawyers and advisors who ask them to exercise caution which is fine but how about an entrepreneur trying to spend more time with marketing folks and understanding how to have good pricing strategy, how to strategize, penetrate market well and also how to be liberal in giving commissions
So it is very important for Accelerator and Incubators to empanel good contributing mentors but they need to be rewarding them by way of compensation or equity and it should be clearly specified.
4) Does entrepreneur get benefited by Accelerator program?
Obvious yes.. as I find each startup has a long way to go..
I have for one.. guiding many incubators and these days also helping few bodies who wish to formulate policies etc around this eco system
However one thing which clearly emerges is that
Do not try to own everything self.. Learn to give away.. and more you give, more you succeed…
Do not try to focus too much on pitch, web site and what not.. . Learn to understand that each client knows that there are professionals who build website, pitch deck etc
so eventually client may appreciate your deck or website or criticize but remember the best of present day million/billion dollar company had sloppy websites too
So… the bottom line.. is focus on business model trials and arrive at good pricing strategies and with a clear assumption that focus only on minimum viable products or service model.
PASSION FRAMEWORK provides an insight to individuals from any walks of life (Investors, Incubators, Accelerators, Entrepreneurs, Academicians and Mentors
Do.. get going.. PROBING AND INNOVATING to re-invent self as STARTUPS to grow STARTUPS