3 Reasons to be part of an Accelerator Program

We (Intello Labs) recently signed up for an accelerator program run by TARGET. A friend of mine pinged me “didn’t you guys raise some VC money? Why an accelerator program now?”. As a start-up, we have been associated with multiple incubator / accelerator programs, and we continue to look for meaningful and value-adding accelerator programs. I thought it may be useful to share our lessons on what worked (and what didn’t). I am sharing perspectives from a B2B company perspective. Needless to say, each start-up would have its own unique needs, and each of you should evaluate what works in your context.

Here we go:

1.      Can you get funding through the program?

Some of the world’s best accelerator programs gain their reputation simply because of their track record in getting their portfolio start-ups funded. Techstars is one of the world’s most renown programs from this perspective. While most programs ensure you get a “demo day” wherein investors line up to hear your pitch, it is not necessarily “well integrated”. Not all of these programs have deep relations with the VCs; best way to gauge the effectiveness of these programs is to ask “what % of your last cohort got funded at the end of the program?”. If the program is unable to give you a clear answer, please be warned. Of the programs we have been through, one gave us funding (they were not just giving advice, they were also investing in start-ups themselves…so that worked well for us). Another one helped us get a grant from the Government.

2.      Can you get a business deal through the program?

Honestly, the best thing for a B2B start-up that can happen through an accelerator program is to start a pilot engagement with a marquee client. It was thanks to JioGENNXT that we started working with Reliance. Check out this video –it was a great deal for us in the early days. In the long run, Reliance ended up mentioning our work in their annual report (check here). We continue to look for such opportunities. The Target Accelerator Program (mentioned earlier) is wonderful in this regard…the clear goal of the program is to get into a paid pilot with TARGET; and it could be a global opportunity.

3.      Can they help your business?

This one is tricky. Most of the programs will sell their dreams of “we have an amazing network / you will get great advice / we can really help you grow”…but really, how does it translate into tactical action points? We signed up for one program simply because we could get free credits for some online tools we regularly use (and would otherwise spend a lot on). Sounds cheap? So what…if it helps your business go ahead and do whatever it takes. Some programs could do a lot more – help you build your product, help you get data, help you recruit. What you need to know upfront is – exactly what is it that the program could do for you? As long as you have that clarity go ahead and invest your time and energy in being part of the program.

Getting into an accelerator program is as much about the start-up pitching to be part of the cohort as it is about the accelerator program pitching to the start-up about the value it can bring to the table. Be clear about the mutual benefit before you jump into anything.

We have had some great experiences. Unfortunately, we have also been part of programs that eventually yielded nothing – no leads, no funding, no freebies, no assistance in business. Would love to hear other start-ups’ stories.