Top 5 Acceleration Perks both Startups and Investors Love
Modern-era investors offer startups a lot more than just the dough – they also share with them access to their network and offer advice and insights on how to run a business. If, just like us, you are an investor that empowers startups from their very early stages and walks with them down the path of acceleration and growth, keep on reading! Why? Below you will find 5 perks that will ignite success for your portfolio companies.
In the mysterious startup universe, one usually meets startup founders in the form of humans in distress and investors that act in the style of Professor Xavier (of X-Men) rather than that of the ruthless Lex Luthor. This new breed of investors is not only concerned with the money-making part of the business deal; it also focuses on how they can actually empower the budding talent they take under their (funding) cape.
And with The Accelerator already in its third cycle, we can support upon our own results that business acceleration and growth for early-stage startups entails more than just starting capital – it is largely about productive capacity-building. How do we as pre-seed investors achieve that? The obvious answer would be through the training and coaching we offer in The Accelerator. Yet, the correct answer includes all of the above plus equipping all Metavallon startups with the right tools to set them up for scale.
This year, we relied on the services provided by our amazing Innovation Allies to push The Accelerator investee team forward. Read on to find out which 7 tools you can suggest to your portfolio startups on the grounds of vamping up their business.
#1. Building upon hiring and recruitment
According to CB Insights, 23% of startups fail because the team is just not right, while 13% of founders blame failure on disharmony in their team. The right tools, however, can ensure that a growth-thirsty startup will hit all the right notes when it comes to hiring. This also means that the venture’s founders understand how team dynamics can influence the team and, eventually investment – especially, considering the fact that the average investor responds strongly to information about the startup team.
A fun, immersive psychometric tool that uses the immersiveness of serious gaming to help startup founders and HR managers make an informed decision about who they are going to let into their team. “A new hire can “make” or “break” any startup. That is why it is important to make sure you hire smart right from the start as it effectively dictates the culture and DNA of the business moving forward”, state Ilias Vartholomaios and Athina Polina Dova, Founders of Owiwi.
#2. Keeping track of KPIs and Investor Relations
It is an undisputed fact: the best funding relationships are the ones that grow organically. After all, forward-thinking investors offer a lot more than just capital to any given startup; they eventually turn into partners. It is exactly this reality, that makes getting to know potential investees before opening your wallets a very crucial point in all funding-related decisions.
THE TOOLS TO OPT FOR:
A collaboration tool that aims to improve early-stage funding relationships. “The tool allows startups to understand and measure the right, actionable key performance indicators (KPIs) and structure great investor communications. The business intelligence gained through our platform enables founders to make better business decisions. At the same time, it provides potential investors with key insights on the venture’s growth status and economic capabilities”, underlines Igor Ferer, CEO and Co-Founder at Angeloop.
Developed by entrepreneurs, this leading CRM tool is designed for raising capital and empowers startup founders to build a list of investor leads and stay organized during their seed or Series A fundraising. “Our software helps founders quickly build a list of target investors, and it helps teams stay on top of their tasks, activities, and follow up actions. Overall, we have found that our software works most efficiently and effectively for startups in acceleration”, reveals Nathan Beckord, CEO of Foundersuite.
#3. Crunching the numbers
“At an early stage, investors do not expect founders to be financial accounting and policy wizards, but they do expect them to have a good grasp of how the company is doing financially. In other words, in order to move forward with their investment, investors check if founders are able to explain how they are using the economic resources available to them”, states Emerson Galfo, CFO at C-Suite Services. With 29% of aspiring new ventures going over the edge due to inefficient fund management, it is rather clear why investors are curious to know how their funds will be used by prospective their investees.
THE TOOL TO OPT FOR:
An all-in-one software and cloud service aiming to give startup founders an additional choice beyond DIY software or outsourced bookkeeping. In one elegant, easy-to-use platform, InDinero combines functions that have traditionally required multiple vendors, software subscriptions, or employees. “InDinero manages a business’s back office from bookkeeping and accounting to federal, state, and franchise tax prep and filing. Eventually, it allows startups in acceleration to cut overhead costs and focus time and money back on growth rather than back office functions”, enthusiastically shares Bill Tyndal, Regional Director in New York.
#4. Enabling Revenues Inflow
Revenue is often examined more closely than profits by investors when they are assessing the growth of a new venture. It is no wonder that investors want to see that a startup is able to perpetually generate increasing sales over time as the company is promoted to an expanding use base. Need an example? According to Business News Daily, accepting credit cards for payment is a proven method to quickly spur up sales for service-driven ventures. Even more, each business that does not accept plastic misses out on approximately $7,000 in sales annually. Bottom line: By integrating payments processing through business applications, founders can save time and money and gain better control over their business.
THE TOOLS TO OPT FOR:
An online and mobile payments platform that runs an awesome global program that partners with top-tier incubators and accelerators in EMEA, North America and APAC. “Braintree_PayPal provides startups with the tools needed to change the future of commerce online, offline or on a mobile device – from ordering ahead at your favorite restaurant to hailing a car service from your smartphone”, says George Kartakis, Manager at PayPal.
An innovative global payment platform. Paymentwall offers 140 payment methods, such as credit cards, bank transfers, mobile payments, and prepaid solutions to ensure coverage for users in more than 180 countries. As a result, “scale-driven businesses are able to reach out to their audience around the world and harness the platform’s global payments coverage to start growing their business. Through traditional and alternative payment methods, startups can reach their prospective customers all around the world”, says Marzia Marziali, Platform Partnership Manager at Paymentwall.
#5. Enhancing Competitiveness
After analyzing 101 startups post-mortem, the team at CB insights came to one big conclusion: most of these startups (42%) failed because there was no market need for their product. What may not come as a big surprise is also the fact that the founders behind these failed ventures stated that the lack of product-market fit was an impediment towards investment and, consequently, traction and growth.
THE TOOL TO OPT FOR
A web scraper that extracts structured data from websites with one significant advantage: through Apifier users can easily scrape modern websites that are increasingly more complex and dynamic. “Web is the largest database on Earth. There are about 250 million active websites but only 15 thousand of them have a public API. Apifier allows developers to API-fy any website. This enables startups to monitor their competition and build new services on top of existing websites and applications. Eventually, we help startups to either to find the right market for their product and/or service, become more competitive players, and expand their business activities and market outreach”, shares Jan Čurn, Founder at Apifier.
By now, you know everything about the secret weapons we provide accelerating startups with, how about you share yours with us?
Before you go running off back to work, stop by these related stories:
- How to Use Serious Gaming to Invest in the Right Startups
- The Road to Investment: How Fundacity and Metavallon Source the Most Innovative Startups in Europe
- Innovation Allies – How our Partners Empower the Ones who Dare