An insider’s guide to startup accelerators
Want the inside scoop on life inside an accelerator? Read on
Accelerators can take you around and connect you with the world - literally
Lately I’ve had the opportunity to reflect on the six month whirlwind that sucked me in, spun me around, poked and prodded, polished, refined, then propelled me out into the world. Yep, I’m talking about my time in BlueChilli’s inaugural SheStarts accelerator. Off of their bootcamp late last year, BlueChilli gave 10 female-led tech startups a spot in their accelerator program of which Longevity App was fortunate enough to score one. From my experience (admittedly with a sample size of only one) there’s distinct advantages and disadvantages to being part of an accelerator vs being out on your own, so in an effort to answer some of the many questions I’ve been asked of late, this is my synthesis of the good, the not quite as good and why I said “I do” to being part of an accelerator:
1. That’s what friends are for - I’ve talked about this before, the cohort effect is vital, way more than I ever anticipated. I’ve had my sobbing arse scraped up out of the corner of the room and ushered out the side door to get some fresh air and a debrief by a colleague during an especially crappy week. I’ve certainly done that in return for others whose day had gone belly up too. If it wasn’t for the cohort and community around me that was a direct result from being part of an accelerator program with a bunch of other startups, where would my sobbing arse be? At home, in the corner, alone. R U OK? No I am not. But no one knows because I’m working from my garage.
Similarly, feeling the same pressures and pain points at roughly the same time as others in the cohort was really important because they are pretty much the only ones on the planet who completely get it. Additionally, the mix of skills and business types in the cohort meant that some founders were totally across things others were struggling with (WTF is a BAS? WTF is an API?) and we could therefore help each other out. Collectively we increase the odds. If you have a tiny chance of making it on your own, then banding together & helping each other out gives us as a better chance of making it. So it’s win-win when you think about it.
There’s a crap load of other support floating around too. Marketing gurus, dev teams, business strategy experts as a start. All at your fingertips, just in case you’re not an expert at all of them…
2. Structure – amongst all the ambiguity of building a business, having a little bit of known in the vast sea of unknown goes a long way. A really, really loooooooong way. Here’s an example, every Tuesday and Wednesday (core accelerator days at SheStarts) I knew what I had to do, where I had to be and how long for. It was just what I needed to give me a little bit of something that was consistent when nothing else was. It also meant I’d see my much needed cohort on a regular basis.
3. Focus and discipline - “but I don’t wanna do my pitch/financial projections/marketing strategy”! Too bad you have to. Yes, even the most professional, dedicated startup founder avoids certain business tasks like I avoid catching public transport with gastro. The thing is, with an accelerator there are expectations, deliverables and deadlines that you would never prioritise, or do otherwise. What can seem as a negative at the time can actually be incredibly beneficial in the long run. For me the end result of this is that I’ve done as stack of stuff that has paid dividends and at times gotten me out of some deep doo-doo when potential investors or corporate partners have asked some curly ones that would have made me look like a complete fool had I not being “strongly encouraged” to focus my attention on those particular tasks.
4. It’s not what you know - a good accelerator will bring with it some serious connections. Sure, some startup founders already have lots of connections. Good for you. But you know what, I didn’t grow up in Sydney (or any city). I didn’t go to a fancy private school. I didn’t even do a business degree (at first) where you’re meant to meet the offspring of all the other rich people. So I didn’t have connections to investors, senior execs and many other networks that would open doors for me and my new outfit. While an introduction is generally it - you absolutely have to shine of your own accord and close the deals yourself - the introduction in the first place is an asset that can’t be undervalued. Now that I’ve well and truly graduated from the program I feel more than ever the benefits of the network effect that the accelerator brings along the entire life of your startup – not just while you’re in the program,.
5. Show me the money - many accelerators will give you some seed funding in return for equity in your business. It may not always be a lot but anything is better than nothing. Personally, I was on maternity leave for the second time around when I started up Longevity App. In between offspring I’d been working part time. With reduced household income, and mouths to feed I hardly had a gold mine to throw at the business. So a bit of operating capital in the early days is a lifeline!
So that’s the some of the good stuff. Let’s take a look at the darker side.
1. School’s back – the reality is, for most accelerators, there are times where you do have to do what you’re told, often to someone else’s specifications, even if you think you don’t need to. Sometimes (okay often) it’s is the right thing, but not always. The thing is, startup advisors and mentors associated with such programs have seen it all before and can foresee the mistakes you’re about to make, but don’t want to be told. Despite all of that, as an adult sometimes you’re just not up for being told what to do which can bring with it a great deal of frustration. Truth is, that’s what you signed up for and for the odd time you did something against your free-will that turned out a bit of a flop, there’ll be many other times that you did something against your free-will that you’re as glad as hell that you did.
2. Do this, no - do that, actually do something entirely different. Hang on a sec – if you think you get conflicting advice around your startup in general, it’s an order of magnitude worse in an accelerator. Everyone’s an expert (literally though, they are). It’s so well-meaning but is also so contradictory. You’d seriously spend hours re-doing a chunk of your pitch one week off the back of someone’s advice only to be told the next week by someone equally as impressively qualified that they hate that graph and you need to change it….back to what it was originally….This is the point where you slam your head on the table just to dull the pain.
SheStarts cohort 1 member and dear friend Sally showing us how pitch practice is done and probably on the receiving end of conflicting advice x10
3. Who’s the boss - sure it’s great to have a bit of cash to help get the business off the ground, but you also now have a shareholder that has requirements and expectations and often times a serious say in your business. All of these need to be managed and sometimes it’s not quite what you think it’s going to be, or at a time when you’re ready to be dealing with investors. My take on it was why not add “managing your investors” to the list of all the other things I’m learning about and embrace it.
I must admit there were moments when I was looking forward to the program wrapping up. Accelerators are intense and thus a good reason that they only go for a set amount of time. I thought I’d have my life back, I’d finally have time to do all the work on my business that I didn’t have time to do when I was attending a workshop or meeting with the EIR’s or go through the trauma of Wednesday pitch practice. So what happened once it was over? Instead of filling my days doing all the things I’d been meaning to do but didn’t have time because of the accelerator curriculum, I found myself doddering around, unsure of what to do. I began procrastinating, something I hadn’t done in years. The Slack channel went quiet, the banter disappeared. Fast forward a few months and I’ve found my new operating rhythm, getting ready to launch and exploring opportunities I hadn’t quite had a chance to get too, which feels awesome. To me this means the accelerator did exactly what it was meant to do, which put simply is to set up the business on a success trajectory and then hit enter.
My verdict? There’s no doubt that such programs are not for everyone, nor every business. You will (and should) struggle with the particulars that will exist for all accelerators at times. They are meant to challenge you. But on the other side of it, I, and my startup, am so much richer for it, though the good and the bad. The SheStarts program gave me an opportunity, with newborn in tow, to start building something amazing in Longevity App that I could never have done elsewhere given my circumstances at the time. It not only gave me an opportunity, but it took it to the next level. Now that the program has officially wrapped up, the things I’ve learnt throughout the program have set me up to take the business to the next level again. So watch this space!
