When you’re a remote company, it can be challenging to find time for events, networking and social activities. After all, how do you know who else is out there trying to find solutions to similar problems?
In addition to being geographically distributed, startups are also looking for ways other than in-person meetings. That’s why remote startups now have access to new acceleration programs that provide a network of like-minded entrepreneurs working on the same niche problems from different locations.
Remote startup accelerators are a new concept that has exploded since the beginning of 2019. They allow startups to grow their business and scale their operations without leaving the comfort of their home office.
These startup accelerators are designed specifically for remote startups and provide the necessary resources for their developers and designers to test new business ideas without the constraints of office space and other unnecessary expenses.
This article is designed to answer some of the most frequently asked questions about remote startup accelerators and their applicability for you and your company.
How Do Remote Startup Accelerators Work?
Like all programs, there are different ways of implementing an accelerator. What sets these programs apart is that they are exclusively focused on remote startup companies.
They provide remote mentorship and resources, but no physical office space. You may think that given the name, you wouldn’t be able to participate if you’re remote, but you’d be wrong.
You can participate remotely through video conferencing or online meetings. A lot of the programs are completely online, making it easier for remote companies to apply.
In addition, the programs’ programs are short-term. They’re often only six months in duration, so they’re not like incubators that provide longer-term funding. This can be good or bad depending on your business needs.
In this article, a number of virtual startup accelerators that have emerged in recent years, are listed. Entrepreneurs can develop their ideas in a virtual environment while receiving advice from mentors and other business owners.
Virtual startup accelerators are used by many distant startups to help them scale their company (source) and gain access to mentors and specialists they might not otherwise have.
Below we will discuss five points you should consider before applying for a virtual startup accelerator.
1. Can a Remote Startup Accelerator Help You Grow?
Yes! Accelerators are there to help you scale your company. The best way to think of an accelerator is as a scaled-down Y-Combinator. They provide the same type of support that the Silicon Valley program does, but in a more condensed timeframe.
Many accelerators offer remote offices and support, making it easy for you to be as close to your employees as you would be if you were in the same city.
Let’s first consider whether this kind of program is appropriate for your firm growth before we explore the benefits or drawbacks of remote startup accelerators. When considering whether or not to attend a business accelerator, there are numerous things to think about.
The most important factor is your level of growth at the moment. A virtual startup accelerator might be a fantastic choice for you whether you are just getting started or have been working on your idea for some time. This choice makes a lot of sense, especially if there are no suitable or high-quality accelerators nearby.
Moreover, you should talk with startups that have graduated from this remote accelerator to see if the accelerator truly helped their startup growth or not. They can provide valuable information and feedback with respect to their experience.
2. Track record of the accelerator
These accelerators do not accept every single company that applies. They have rigorous selection processes that filter out the vast majority of would-be participants.
You should look at how many they have accepted out of how many applications, what value the accelerator has added and to what extent their startups were able to raise capital in the next rounds.
If its startups succeeded with growing their business and increasing their recurring revenues through validating their business model, this is a major achievement for the remote accelerator. Accelerators typically report on these highlights in their websites.
Track record of remote accelerators is important because it shows their quality and success in the past. Moreover, you should look at how much time you need to invest in their program.
If it is very demanding and they have too many activities and events, perhaps it is not the best program for you. This is because you should focus a lot on your startup as there are many tasks and responsibilities that require your attention.
3. Drawbacks of remote startup accelerators
There are a few things to consider before deciding to apply for a remote startup accelerator. First, they are short-term programs that last between three and six months. This can be a problem if your business needs more time, like if you’re still validating your idea.
Moreover, if such accelerators charge costs, some startups cannot afford joining the program. There are a couple of more drawbacks of virtual accelerators:
- Lack of Physical Engagement With Other Entrepreneurs: Although online courses, mentors, and programs can be helpful for learning, you won’t get the physical interaction with your peers that occurs when you are all in the same room.
- Lack of Peer Support: Enrolling in an online program might occasionally make you feel like you are on your own in your endeavor, without any peers to guide you through the challenges of beginning and growing a business.
- Lack of In-Person Mentorship from Experienced Professionals: Another possible drawback of participating in online startup accelerators is that you won’t receive the same level of face-to-face mentoring from seasoned business professionals.
4. What are the benefits of applying for a remote startup accelerator?
When you decide to join a startup accelerator program, you will have the opportunity to remotely work with other like-minded business owners and entrepreneurs who are also trying to scale their ventures.
By doing this, you will gain access to a network of business professionals from the startup scene as well as feedback and mentoring from seasoned individuals in the business sector.
Participating in a virtual startup accelerator program can also give you access to a larger network of professionals and business leaders while fostering and strengthening ties with other business owners.
Such online platforms will give you a special chance to connect and get to know leading businesspeople and experts from around the world. You may support one another’s enterprises by developing these connections.
You can also save money and time by enrolling in an online startup accelerator. Through online mentors and classrooms, you can participate in your program from any location in the world.
Additionally, you may network with business owners and experts from all around the world, which is advantageous for entrepreneurs who frequently relocate for employment.
5. How do they charge you?
Lastly, it is important to ask them how they are going to charge you. Do they take a couple of equity percentage ownership (1%-5%) like many accelerators? Or do they charge upfront costs such as participation fee?
If they charge participation fee, how much do they charge and is it worth it? Startups have limited financial resources and should be careful with spending such resources. So you should weigh costs (including time commitment) and benefits of enrolment.
If they are taking equity ownership, are you willing to give up a few percent of the company just yet? Perhaps you prefer to give up equity not at this stage so easily and wait for venture capitalists. What else the virtual accelerator bring on the table?
Perhaps they do it differently, for example, through revenue sharing or other types of conditional agreements. You need to investigate their revenue model carefully and its pros and cons for your startup.
Final Words: Should You Apply or Not?
There are plenty of remote startup accelerators out there. This article is designed to help you understand their applicability and evaluate their track record and drawbacks to better decide which one might be best for your business.
When looking for a remote startup accelerator, there are a few things you should keep an eye out for. Make sure it has mentors with expertise and successful events. If so, you’re in luck since these are the two things that a remote startup accelerator needs the most.
Last but not least, joining one of the best online startup accelerators can provide you the credibility and reputation you need to subsequently approach rival venture capitalists and other kinds of investors.
Now, it’s up to you to decide on which one you’d like to apply to. Hopefully, this article will help you make that decision.
2 Comments
I could agree more- except I shouldx LOL
Thanks for your blog post. Some tips i would like to bring up is that pc memory ought to be purchased if your computer can no longer cope with anything you do by using it. One can put in two RAM memory boards of 1GB each, as an example, but not certainly one of 1GB and one with 2GB. One should always check the manufacturer’s documentation for one’s PC to be sure what type of storage is needed.