Five Things To Think About When Considering Startup Accelerators

Full disclosure: I was a Startup Evangelist at Microsoft for 7 years. In that capacity, I sampled the startup ecosystems in several cities (mostly on the Western Coast of the U.S.), met thousands of startups of all shapes and sizes, and worked closely with many accelerators. I have witnessed many heart-breaking failures and jaw-dropping successes… That doesn’t make me smart, but it does give me a wide spectrum and large sampling size to opine about entrepreneurship.

That said, the following views are mine alone and was written while I was slightly under the influence of some beverage that may or may not contain alcohol.

1. Do not lean on the “curriculum” to get the optimal experience

Most accelerators or incubators will have some kind of curriculum, program structure, structure, regiment, milestones, etc. By all means, make sure you are meeting the milestones, like being able to justify your CAC analysis, articulate your GTM strategies, know what those acronyms mean, etc. BUT if you think that, upon entry into the program, you can kick back and be chauffeured down Fifth Avenue with confetti made of cash into some glitzy success, you are delusional.

Good accelerator programs are less MBA school and academic: you follow their structure, you get A’s, you get a good GPA, you become successful. Nope. You’re not in school. I submit it’s more like a holiday cruise — you’re onboard for a finite time, and there are all kinds of goodies for grab, but you can’t possible grab (or need) everything, so you have to pick what you want and best for you. You are responsible for making the best of out of it.

2. Think selfishly... well, sometimes.

Sorry, no time for that Kennedy ‘ask what you can do for your country’ stuff. You have to ask what the accelerator is going to do for you and your business. If neither party can answer that question, I would say it is reflection time. Them telling you that you were selected to be in their program among thousands of applicants has zero to very little direct contributions to the bottom line of your business, apart from maybe some fleeting self-congratulatory-pat-yourself-on-the-back. It is tantamount to telling an attractive person that you have selected him/her among many to be your date. The selfish response is “Thank you for the honor. What’s in it for me?”

While most accelerator programs aren’t some each-man-for-himself, fight-to-the-death competition, but there are limited resources and time available. While you have don’t have to go Black-Friday-at-Walmart-mode, remember you do have to think what is good for you and your product. Once you are in, you maintain that stance to milk everything you can to make your business one notch better, one step closer to your goal.

3. Know what you want out of the program

Yes, pivots are necessary at times, but I would like to make one obligatory Biblical reference: Where there is no vision, the people perish. Mind you, it doesn’t say that the vision has to be the right one. Granted, with clear insights, and sound guidance, you might fine-tune your vision, but it is your baby at the end of the day. You have to know what you want long term for your business and know what you want short term goal of out the program to get to that long term vision.

If you bring your startup through an accelerator program vision-blind and let others define what you want, I would say you’re off to a bad start. It is not the right time to ask the waitress or waiter what they like from the menu. So if you can’t answer what your goal is for the program to get your goal, it is reflection time again, buddy.

4. Understand the dynamics between them and you

This is not found in any MBA or psychology textbooks, but it is fundamental. Understanding the relationship, business partnerships, financial implications and incentives, motivations, leverages, penalties, give-gets, etc. between the principals at the program and your business is critical in guiding your journey with them. Everyone talks about the rosy outcome, but the better litmus test to ask the less obvious: Ask what happens (financials, reputation, etc.) when your startup doesn’t succeed as a result of the program. If the answer sounds like ‘not much because we’ve got other horses in the race’, then it is time to pop to the previous paragraph to evaluate what’s in it for you.

5. Screw compliments (quietly to yourself)

I am certain you will be welcomed at the door on day one and paraded like the elite graduating class of the Marine Corp on the last. During the program, you will be graced by the presence of VIPs, dignitaries, hippy young startup CEOs, and other folks with a lot of money who will tell you how wonderful your product is. I submit that all that means zilch and guano unless people put their money where their mouth is — as an investor, as a customer, or as someone who can bring you customers. If you have to choose: Latch on to the harsh critics. If they say, “Why would I ever pay for that?” — I’d say there is a good 80% chance they become your most valuable sounding board. If they say something like “This is really cool!”, I would say there is a 80% chance they are blowing smoke up your whatever.