How Do Great Startup Accelerator Programs Prepare Their Founders?

Startup accelerator programs have become much more common in the past decade around the world. While the concept of a startup accelerator program has existed for years — see Y-Combinator and TechStars — they have grown in popularity over the past couple of years.

Startup accelerator programs help startups accelerate their growth by providing founders with access to a team of experts, connections and resources that accelerate development.

Great accelerators provide a structured environment where founders can focus on developing their business while being mentored by seasoned entrepreneurs, investors and industry professionals in exchange for equity.

The programs vary widely from one another and there aren’t any set standards or requirements to join one of these programs. However, there are some common elements within these programs that distinguish them from not-so-great programs.

In this article, we list top 5 startup accelerator programs in the US and their application process.

Let’s take a look at how the best startup accelerator programs prepare their founders in order to accelerate growth after graduation.

What make great startup accelerator programs?

When looking to partner with startups, startup accelerators evaluate the founders and their companies in a few key areas. Great startup accelerator programs are very selective with their application process (Y-Combinator accepts around 2% of the applicants) and find the most fitting and ambitious startups to enroll.

By partnering with the right startups, accelerators are able to provide founders with the right experience in order to create successful businesses.

For starters, great startup accelerators are looking for founders that are very innovative with their idea, ready to scale and bring their products to market.

While it is important that founders have a solid business model and product, accelerators are also looking for founders that have the marketability, team members and financial backing to support growth.

Product and team readiness

When evaluating startups for inclusion in a program, startup accelerators are looking for a product that solves a real problem and has solid, working prototypes. Similarly, founders are expected to have a concept, prototype and roadmap that will be ready for scaling.

The best accelerator programs don’t rush their founders through the program. They make sure that both the founders and their product are ready to take on a six-month intensive program.

During this time, founders should also have clarity on their business model and customers. Once the program begins, it’s essential for founders to have a clear idea of their objectives and to have their product ready for the accelerated pace of a program.

Top accelerators strongly prefer that you not only have validated the problem you try to solve, but also have built a functional prototype and tested it to some extent.

Generally speaking, the more your startup has validated the solution and the prototype, the better it will be positioned within the accelerator and it can gain from the offered services.

To help founders get ready for the program, programs often have founders participate in a product or demo day with the help of mentors or investors.

This is a great way for accelerators to test founders’ product and see how ready it is for the program. It’s also a great way to receive feedback on how ready the product is by the people that are most familiar with it.

Networking and Mentorship programs

While it is essential to build strong relationships with the mentors, partners and investors you work with, it is equally important to build strong connections within the community.

Through networking events, meetups and social media, it is possible to discover partners, investors and mentors that can be used to further the goals of your business.

During the product and team readiness process, founders should also be prepared to make connections within the industry. The best accelerator programs will have founders attend industry events, sponsor industry events and have mentors who are experienced entrepreneurs in the industry.

Networking and making connections are essential to successful business growth. The best accelerator programs will help founders build relationships with other founders at the accelerator and with mentors, investors and partners.

These relationships will help founders expand their network and learn from industry leaders. Founders should also look for programs that provide mentorship and networking opportunities outside of their accelerator program.

There are many benefits to networking outside of an accelerator program, including making new connections and scaling your business with the help of larger networks.

However, great startup accelerator programs don’t want their founders to attend too many events/talks because, they believe that’s a poor use of time.

Legal, financial and operational readiness

The legal, financial and operational readiness of your company will be determined by your venture capital portfolio and the type of investor that will be included in your round. Startups typically lack knowledge on legal and financial (or accounting) sides of their business and their main focus is on building a new product or services for the customers.

For example, seed stage investments will require an operational and financial readiness that includes a thorough operational audit, exit strategy and business model.

Founders frequently lack significant background in many areas of business. Great startup accelerator programs fill this knowledge gap, as explained in this blog post, by offering training on soft skills, marketing, and finance.

These programs might aid entrepreneurs in navigating the frequently perplexing business world.

These abilities can also aid founders in particular areas of their business plan. For instance, training in marketing and product management can aid founders in understanding their target market and their offering.

Organizing a demo day for startups

When it comes to the demo day, this is one of the key touchpoints within the onboarding process of top startup accelerator programs. A demo day is typically a one-day event where startups pitch their products and services to potential customers.

This is a day where founders invite startups from the accelerator network and their network to showcase their product. It’s a great opportunity for founders to get feedback about their product and get connected with other founders and the industry.

There are a few things to keep in mind when organizing a demo day for startups from your accelerator program. First, you should invite startups from your network, as well as startups from the network of the accelerator.

For the demo day itself, invite someone who is experienced with product management, marketing, sales and operations. This person should be someone that founders can brainstorm with throughout the event. This person can be a mentor, an investor or someone that you meet at the event.

Demo Day is not a Cinderella moment, as any reputable accelerator is aware, therefore founders shouldn’t expect closing their round there. That never takes place. Instead, it serves as a helpful tool for generating money and a means of setting up a meeting with investors.

Conclusion

The best way to ensure that your startup is ready for an accelerator program is to start one. There are many benefits to starting a startup, including the opportunity to learn new skills and make connections with potential mentors and investors.

There are many factors that contribute to making startup accelerator programs successful. One of the most important is preparing founders before they enter the program through product, team and legal readiness.

This will ensure that they are ready to take on the program and receive the most out of the experience.

Lastly, you can read another post of ours where we explain further how top startup accelerator programs prepare founders for success in their trajectory.