In the US, the number of startups is 63,703, with only 40% becoming profitable.
Accelerator Programs have been around for about a decade and are designed to increase the success rate of startups by providing a wide range of business resources and teach the fundamentals that allow founders to go from concept to company.
While there are many accelerator programs out there, they share a common goal to “accelerate” a company’s growth and take place over a span of a few weeks or months. These “business startup bootcamp” guide founders through the key milestones in a faster amount of time. There are many benefits of these programs including training, networking, seed funding, exposure to investors, and more.
One of the biggest benefits of joining an accelerator program is the access to capital allowing startups to meet investors in a variety of ways. Unlike traditional venture capital firms, some accelerators invest in the early stages of a startup and will often take a percentage of equity in exchange for acceptance to the program.
Should you join?
Before deciding to join an accelerator it’s important to know these programs are highly selective and challenging to get into. Top programs accept less than 5% of their applications and the time-consuming process includes a detailed application and interview. Also, many accelerator programs are sector or geographically specific. So, do your homework and be selective on the programs to pursue.
Growth, funding, and mentoring sound like the key to success but do these programs really work? There have been numerous successes such as companies like Airbnb, DropBox, and SendGrid - all startups who have gone through an accelerator program but not all companies are the right fit. For businesses who are looking to grow quickly, gain expert guidance, and connect with investors an accelerator might be right for you. Research has shown that when designed properly startups are able to succeed.
Accelerators became popular in tech-heavy locations such as Silicon Valley but with the increase in interest, many companies offer a variety of accelerator programs for a variety of industries.
Gener8tor’s gBETA AgTech program is a seven-week course for early-stage accelerator for Agtech and Agriculture startups. Learn more about this program here.
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