Currently, where the world changes based on unpredictable events such as Covid 19 and whose outcome is unknown, many companies have managed to adapt to change, grow, create and innovate, but others still resist… As if going back to the traditional way was the only option.
This time has also been special for entrepreneurs, who even with the lack of certainty that comes with ceasing to depend on a “stable” job and fighting to create their own business, take a step into the void without knowing what awaits them.
Examples such as Airbnb, DropBox, Rappi and many of the technology companies that shine in the world today, at some point in their existence went through uncertainty and the need to go to a business accelerator to receive a series of benefits that today we want to tell you about. Access to capital, community building and support from business experts are the beginning of great ideas and even economic emporiums that had this help.
What are they for?
Accelerators are the first allies of entrepreneurs in the technology area: they offer advice for several months, networking and, in many cases, financing in exchange for a percentage of the company.
For example, if you have an innovative idea but your company is still in an initial phase, with organizational, financing or growth difficulties, the success of your business may depend on one of these entities. Before deciding on one or the other, analyze the team of professionals who mentor the projects, the duration of the support programs, and if they only provide funding or also a physical space shared with other entrepreneurs.
According to global figures, it is estimated that there are more than 7,000 accelerators globally, of which 90 percent are non-profit organizations. In Colombia, the agency promoting entrepreneurship and innovation iNNpulsa has tracked some 38 organizations of this type.
Analyze the differences
Sometimes accelerators are confused with other actors such as incubators and investment funds, largely because they share characteristic elements of the latter. But it is clear that they are different, as they have different business models and incentive structures. Here you can find the differences:
- Physical coworking spaces. Where to work with the team, together with the accelerator’s mentors and other entrepreneurs.
- Project mentoring and training. A team of experts will help define and validate the startup’s business model, through training and tutoring on any aspect.
- Accessing a wide network of events and contacts with business experts, potential clients, investors and people in the environment with whom to establish synergies.
- Initial financing (seed). Many programs offer an initial investment in exchange for shares in the company to be able to develop the project and obtain profitability in the future.
- Demo Day. At the end of the program, the entrepreneurs present their project, the progress made and what they will be able to achieve if they obtain the financing they need to investors who specifically come to the event.
If you want to start an idea, but don’t know how, we recommend this alternative. Business accelerators become the best option for small businessmen or entrepreneurs with a thought business model to consolidate, learn from innovation, adaptation to change and competitiveness in the field of new technologies.