Should you join an Accelerator?

The Startup Help Desk

In this episode we answer questions about startup accelerators. Accelerators are programs that promise to help improve your chances of startup success, but how do they actually work? We are here to help! In this episode we answer questions including:

• What do I get if I join an accelerator?
• How do I know if an accelerator is worth it?
• How do I get the most out of my accelerator?

All of these questions were submitted by listeners just like you. You can submit questions for us to answer on our website TheStartupHelpdesk.com or on X/Twitter @thestartuphd - we'd love to hear from you!
Your hosts:

• Sean Byrnes: General Partner, Near Horizon www.nearhorizon.vc
• Ash Rust: Managing Partner, Sterling Road www.sterlingroad.com
• Nic Meliones: CEO, Navi www.heynavi.com

Reminder: this is not legal advice or investment advice.
Q1: What do I get if I join an accelerator?

Well-established accelerators typically provide:

• Cash: they typically invest. The amount varies and the terms are often on the lower side vs. what you could get from going directly to multiple investors to raise a round.
• Demo Day: the fastest way to 100 investor meetings. Accelerators host a showcase event for their startups and their network of investors to meet. This can be a huge value, helping you to line up investor meetings.
• Network: an accelerator immerses you into a network of fellow founders, investors, and company builders.
• Tools: accelerators may also provide tools to simplify how you connect with and benefit from the network.
• Healthy competition: working alongside and learning from other ambitious founders is a great way to create some healthy urgency for your startup.
• Serendipity: all of this combines to create new opportunities for you. If you put in the right kind of work, you may be surprised to see what doors open.

Q2: How do I know if an accelerator is worth it?

This is a critical question to ask; there are lots of snake oil salespeople.

Ask yourself what you need first:

• Need help fundraising? YC has shown that a premier accelerator can help with that; however, not every accelerator has shown they can help.
• Need help selling? Some industry or focused accelerators can help teach you.
• Need help recruiting? Some accelerators can help mostly through association with their brand.

Generally, there are cheaper ways to get the help an accelerator offers.

When evaluating the benefits, consider the following value that accelerators can offer:

• Cash: is it at least 6 figures?
• Demo day: are there plenty of examples of recent multi-million dollar rounds from the program?
• Network: are there well known alumni and speakers at their events?
• Tools: do alumni report using their tools?

Make sure the benefits they offer have substance.
Q3: How do I get the most out of my accelerator?

Set expectations with your co-founders about the desired outcome from the accelerator. Is it to accelerate sales? Is it to fundraise? Work backwards from your end goal so that you know where to prioritize your efforts.

Talk to founders that have been through the same accelerator – preferably before applying! Identify what the most successful companies did in the program and make a plan to do those things.

Once in the accelerator:

• Hit the ground running so you’re always at the front of your class.
• Take control of who you work with, rather than waiting for the accelerator to assign mentors.
• Be creative with your tests: your accelerator companions will be eager to help you amplify what you do!