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Startup ABC #1: Accelerator

Accelerator - The startup catalyst

You’ve probably heard the term “accelerator” before in connection with business startups and startups. But what exactly is it? We’ve summarized the answers to the most important questions about startup accelerators here for you in a concise and straightforward way.

What exactly is an accelerator?

An accelerator is a program designed to support startups and is similar to a “boot camp” for founders. That means if you manage to get accepted into an accelerator, you’re in for a few weeks of hard work! However—and this is the great thing about these programs—during this time, you’ll be supported by professionals and experts who will help you get the most out of your business ideas. The goal of accelerator programs is to boost the growth of the participating startups, get their business ideas ready for the market within a few weeks or months, and, if necessary, secure external funding for them. To this end, the founders are supported in improving their business models, refining their startups’ products or services, implementing initial projects with customers, and putting their companies on a growth trajectory. True to their name, accelerator programs can therefore be real catalysts for the growth of your startup.
 

How long do you get which kind of support?

Accelerator programs last several weeks or months, but generally no longer than half a year. During this time, you’ll receive various forms of support—often financial assistance in the form of seed funding or salaries, the provision of workspaces and resources, professional guidance from mentors, and coaching on a range of topics.

Accelerator programs usually culminate in so-called “Demo Days,” where you’ll have the opportunity to present your business idea or company to potential investors and network with various stakeholders.

Which providers of accelerator-programs are there and what are the conditions for funding?

Accelerator programs are often run by large corporations, but also by universities and other public institutions. Accelerator programs run by corporations, in particular, are usually industry-specific, which is something you should keep in mind when searching for one. You can search for programs here, for example:

In exchange for funding through accelerator programs, you are often required to give up equity in your company.

How can you apply for these programs?

Applications for an accelerator program are typically submitted online via the provider’s website. In most cases, you’ll need to fill out an application form and upload a pitch deck that describes your business idea. Since the pitch deck forms the basis for the initial screening, you should place great emphasis on quality when creating it. If you pass the initial screening, this is usually followed by phone interviews or a pitch in front of a panel of judges.

Is it possible to apply for an accelerator-program without a concrete business idea?

If you don’t have a specific business idea yet, applying to a so-called “incubator” might be the better choice for you. These programs focus on developing business ideas. So they’re more like “incubators” for ideas, whereas accelerators are designed to accelerate existing business models.

Where can I find more information about accelerator and incubator programs?

You can find more information about the differences and similarities between incubators and accelerators on the website of the Gründerplattform, an initiative of the Federal Ministry for Economic Affairs and Energy and KfW: https://gruenderplattform.de/finanzierung-und-foerderung/finanzierung-finden/finanzierungsmoeglichkeiten/accelerator


If you’re thinking about applying to one of the existing accelerators or incubators but still have questions, feel free to contact us directly for a consultation.

 

Published on June 8, 2021
Author: Frauke Leuckefeld