This a.m., I got an email from Nicole who runs Techstars Boulder reminding the mentors that Friday (March 16) is the last day to apply. “Cool,” I thought, “I’ll just tweet that out.” But right before hitting send, I got an email from an entrepreneur with the title “Why an accelerator?”So, I figured a-bloggin’ I would go.I get asked this question a lot. In the explosion of startup accelerators, it makes sense. Raising money is hard. Really hard. Doesn’t matter what the tech news blogs say, its hard.
Especially if you aren’t in New York or San Francisco.
As a young entrepreneur, applying to YC or Techstars or 500startups or looks like free money. If you can get it. Thats really hard too. Well for some of the accelerators. For others, its super easy.
Oh, and mentors, lots and lots of mentors. Some great; some not so good. Some are pains in the you know what; some are super cool.
Space to work, a group of other companies to work with, and the ability to join a network of founders that understand the difficulties that you face.
So why wouldn’t you join an accelerator?
The most common comment I hear is age. Yes, there is a belief that accelerators are for the young. And, more so, for the inexperienced.
Often, you hear Techstars and the rest counter with the founders “of age” that have been successful in the program. Good selling strategy, right?
Here are the facts about an accelerator:
- Being forced to work around companies that are doing an insane amount of work and having to validate that work with the accelerator staff and mentors is probably the single most amazing reality about membership in the accelerator club. It’s impossible to replicate this in any coffee shop, co-working space or basement.
- Being held accountable not only by your peers, but by potential investors, is a great litmus test for your ability as a founder to deal with the roller coaster of startupland.
- Having access to mentors drives critical and creative thought in a way that is impossible outside of the accelerator dynamic. Even though that creativity and constructive criticism is overwhelming and not always creative or constructive.
- It is easier to raise money if you have been through a well-regarded accelerator like Techstars, 500 or YC. It’s impossible to raise money later if you don’t raise at, around, or just after demo day. Take too long, and your shine wears off.
- Getting into YC, Techstars, 500, etc. is not like getting into a fraternity/college. Its not party time. Its work time. The Bloomberg “reality” show was BS. Don’t believe the hype. Its work or die. And as friendly as the other companies are, they will gladly see you die in order to win. (Yes, I am being bombastic. But, in every single class, there are a couple of “favorites” that do extremely well, and then everyone else. Everyone wants to be the favorite, after all, everyone is a Type A. Don’t lose sight of that reality.)
- Some companies are just not made for accelerators. You might not be thinking big enough. Your concept may be outside of the comfort zone of the accelerator’s staff and mentors. There are many reasons why your company just doesn’t fit within the accelerator framework. Its not the accelerator’s fault.
- If you are worried about the equity you have to give up to the accelerator as part of the program, then don’t go. Seriously, don’t go.
Bottom line. Should you do an accelerator?
Maybe. It’s really your decision. Techstars Boulder’s deadline is 3/16/12. Get on it.
But, if you get in, and decide to do it, then do it 120%. Work harder than everyone else. Push yourself and your team. Become great. Don’t be one of the forgotten companies.
And if you decide that you don’t need an accelerator, well then, that’s cool too. Prove to the world that you don’t.