Startup accelerators are programs carried out to ensure startups and their owners get the necessary help and knowledge they require to conduct their business effectively.
Start accelerators are done in cohorts and could last for three to four months. Here, participants are trained with various skills needed to run a business, provide them with infrastructure, and support while introducing them to the ecosystem.
During the training period, participants are placed under a mentor who works with them during the training and guides them as they prepare their startup pitch. This pitch is presented at a demo day, most times participants who were able to pitch their startup well get funded with seed capital.
There are so many benefits of accelerator programs for startups, listed below are five benefits of accelerator programs for startups:
The business knowledge here is accelerated as during the program, experts who have amassed a wealth of experience and skills from running business mentors the startup owners.
The mentors share these experiences which ordinarily will take the participant years to acquire and also these expert mentors are high-profile business people, the participant won’t have easy access to them if they didn’t attend accelerator programs.
By leveraging on the information, participants launch their startup with a clearer, calculated, and strategic business model, thereby avoiding some pitfalls and this generally increases the chances of success for such a startup.
Access to Investors
Accelerator programs connect startups with the opportunity to pitch their startup idea directly to investors. A demo day is organized and potential investors come to listen to the pitches from participants.
This increases the chances of getting funding for startups. Also, mentors from accelerator programs can decide to invest in the startup of their mentees.
Accelerator programs give one access to an ecosystem where you get comprehensive support from both mentors and other startup owners.
This support encourages and helps you continue in your journey as it is a known fact that running a startup is not an easy task. Also, the alumni arm of accelerator programs ensures continuity of support.
Often, accelerators bring attorneys, financial experts, regulatory experts, as additional support systems who advise the participants based on their respective jobs.
Accelerator programs invite people who are the target audiences of startups during the demo day, they hear the pitch also and give you feedback.
From this Interaction, one gets a lead on the prospect and can follow up once the startup is launched. Some startups also acquire their first set of customers this way as customers might be intrigued by the pitch and seal a deal.
Risk Management Skill
Risk management entails the identification, assessment, and subsequent control of business threats.
Risk management requires skills that the startup owner might not possess and thereby always playing it safe, which is not the best option for startups.
Accelerator programs impact participants with knowledge on what to do in face of risk and how to manage risks in their businesses.
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