When we say business accelerator, we are referring to a program that provides access to developing companies when it comes to aspects like mentorship, investors as well as other support which helps them become self-sufficient and stable businesses. For companies that are using business accelerator, they are typically start-ups that have moved above the earliest phases of getting established. These companies have basically entered their adolescence, which means that they are capable of standing on their own two feet, yet still need guidance and peer support in order to gain strength. As for less developed companies that are not yet ready for a business accelerator, they rather choose to use business incubator for support.
Aside from giving access to mentorship and investment opportunities, a business accelerator is also known for its ability to give growing companies access to technical as well as logistical resources, aside from shared office space. Not only that, there goes the fact that a business accelerator will connect companies to networks of peers whose experience is something that they can learn from. A business accelerator program is something that can last between two months and six months. The goals of this program is to make sure that companies emerge a ready and prepared to run by themselves, with a strong positioning in terms of claiming a share of their target markets. There are two primary kinds of business accelerator and these are the seed programs and the second-stage programs. The seed programs are the types of the business accelerators which tend to last for two to four months. They focus on start-ups that are less mature, and also, building business fundamentals prior to diving companies the chance to pitch their ideas to investors. The other type of business accelerator is the second-stage program which is known to last up to six months. The second-stage program focuses more on start-ups that are mature, and it connects the business to full range opportunities and support.
There are other things that you have to be aware of when it comes to business accelerators such as the fact that they are organizations offering a wide array of funding opportunities and support services for starting businesses. They have the tendency of working by implementing startups in programs that are months-long which are said to offer supply chain resources, office space, and also, mentorship. In addition to that, we want you to know that business accelerator programs are designed specifically to offer access to investment and capital, in return for equity in startup. Startup businesses essentially graduate from the accelerator program they had after 3 or 4 months. This means that programs that are developing are very intensive and time-sensitive.
There are so many reasons why businesses accelerators have exploded in popularity, but the most common and known one would be the fact that they are designed to offer the best and the most excellent option for both worlds – startups and also, investors. All these and more are the things that you have to know about business accelerators.