Startups in Acceleration. 5 reasons why they are powerful investment assets
A startup accelerator is built to foster rapid growth for its portfolio companies. It is a perfect storm of mentorship, access to technology, access to funding, office space, and an innovation-driven community, packed into a short time frame.
Essentially, an accelerator optimally complements and energizes the world of early stage investment. It sets the most solid foundations for startup growth and systematically springs the most promising companies to the global market.
1. Τalent leveraged and empowered
Accelerator programs vary much in their approaches, yet one thing is certain: they are about doing and achieving. Among core practices is to employ a hands-on approach in guiding entrepreneurs, so that they move swiftly and efficiently towards success.
This practice involves empowerment, rather than micro-management; it is driven by the entrepreneurs and supported by a committed and knowledgeable community. It also involves leveraging peers and more specifically the expertise and strengths of fellow founders. At the end of the day it is all about the talent. And within an accelerator, talent accumulates, flourishes, and multiplies.
2. Startup teams geared up for global and accelerated growth
Startups who are accepted to join an acceleration program have certain qualities, both in terms of their team and of their business model. Yet, it is the global potential of the concept and the intense work to develop a strategy to realize this that make a difference.
The strategy in particularly involves a significant time investment in research, planning, and verifying through execution. It also involves systematically seeking feedback from the international community of accelerators and learning from such experts and professionals. It is a framework with a clear global perspective that allows young companies to develop a mindset of creating valuable cross-border businesses.
3. Businesses prepped for funding, and especially for what comes after: working with investors
Angel and institutional investors have certain requirements and expectations from startups. Great acceleration programs work with entrepreneurs both on the process of attracting investors and on working efficiently with them.
During the program, founders gain confidence in presenting and building on their strategy through constructive feedback, in working with specific metrics and timelines, and in balancing product and business development with reporting. Essentially, they build the foundations for collaborating effectively with their investing partners.
4. An investor-vetted pool of people and businesses
Acceleration programs such as our very own, The Accelerator, provide selected startups with pre-seed investment. At this level, the amount of funds allocated is aimed mainly at providing the team with resources for testing and solidifying their business model, to prepare for growth. It also allows entrepreneurs to become accustomed with handling financials and investment issues.
It is an investment nonetheless. And it is evidence of having gained the trust and support of investors. By the end of the acceleration process, startups seek to secure their next series of funding and are already backed both financially and business-wise by motivated investment partners.
5. Access to a unique network of entrepreneurs, professionals and corporations, for feedback, guidance, and growth
Still, the most significant value of an acceleration program comes predominantly from the opportunity that entrepreneurs have to connect with and gain insights from a pool of highly-accomplished individuals. For instance, The Accelerator startups have the chance to network with experienced investors, successful business developers, serial entrepreneurs, and distinguished professionals of global corporations, both in Europe and in the US.
To all the above, business advisor and investor Andreas Kallis, shares that: “Founders that have been through such programs have the exposure, the benefits, and the learnings that one would derive from a top business school”. All coupled with and multiplied by execution.
Interested to know more about what investors have reported to be expecting from startup companies? Check out our blogpost on this with some hands-on insights.