As a startup founder, do you know what would work best for your business, a accelerator or VC? Although both aim to help startups, they aren’t for everyone. It all depends on which stage the startup is at. In case you never heard of an accelerator program or a VC investor, then you better sit down for this one. We’ll go over both and hopefully by the end of it, you know which one to choose.
When it comes to accelerator programs, there are various types of accelerators. With some programs offering more to startups than others, it is highly recommended to know what you’re getting into before signing up. Here are two main types of accelerators:
- Expertise; these accelerator programs provide startups with mentors that have had their own successes as entrepreneurs. Other than that, they can (isn’t a guarantee at all programs) also offer exposure and sometimes even a “small investment” to the applicants. The size of the investment depends on the criteria of the accelerator program.
- All in one; These programs offer expertise from their mentors, along with various free (or for a reduced rate) resources to their applicants. This may include free office space (sometimes even housing for international applicants) and more.
The size of the investments that they offer are usually bigger than the other type of accelerator programs. The size can range between $10,000 to $150,000 per applicant.
As a founder, you need to research the program and what they offer exactly before signing up. It needs to be mentioned that signing up for a accelerator program is not the same as getting in. Especially the popular programs have hundreds of applicants but only a select amount of startup slots. It ultimately comes down to knowing which stage your startup is in. Schedule a free intake with us to figure it out.
Show me the money
When it comes to VC investors, the common misconception is that their biggest strength, is the money that they bring in. This couldn’t be further from the truth. Additionally, all VC’s aren’t created equal. The biggest strength of a VC is their strategic resources that they can offer. Therefore the biggest advice is to do your homework as startup founder.
Get the ball rolling!
In case you want to get help with your startup, take a look at our pitch competition and be seen by investors and accelerators alike. The primary purpose of this competition is to add value to all startups that apply (not just the finalists). Check out the details and sign up! It will be completely online, so don’t worry about where you’re based.