Mitra Ferdows stated that today, accelerators – as one of the support centers for startups – play a key role in the startup space. By providing a network of investors, entrepreneurs, various organizations, and professionals, they provide the right environment for startups to grow. As a result, they are developing a “new economy.” Accelerator programs are constantly evolving and evolving. The business model or how to generate revenue has always been one of the most important concerns of accelerators.
What exactly an accelerator connotes?
An accelerator is a collection that supports innovative and creative businesses in a variety of fields. It helps turn a pure idea into a startup by providing a group of people with the right facilities and space. Accelerators speed up the process of starting a creative business by providing the necessary training, as well as providing the financial and even human space and capital needed to implement the idea, and in return provide a share of the business’s material benefits and spiritual credibility. They include mentors or counselors who provide ideas and guidance to people with ideas and typically design processes for receiving ideas throughout the year that individuals and teams with ideas can participate in. After evaluation and judging, innovative ideas take the next steps.
Mitra Ferdows added that since accelerators are the main gateway for creative ideas to enter the business world, it can be concluded that the more creative accelerators are, the more creative ideas become business. Usually, each accelerator supports several ideas simultaneously over a period of time, and after a period of time when some of those ideas are implemented, they simultaneously create a significant impact on the business environment.
Accelerators can help to grow the number of startups:
Accelerators can spread the culture of entrepreneurship and startups in the community by telling the success story of their teams and media activities. In addition to reducing the cultural pressure on startup owners, this can help increase the number of startups, and contrary to appearances, this is not a threat to other startups. Research shows that increasing the number of startups in an ecosystem helps increase the value of each one. The most important reasons for this are increasing the accumulation of knowledge in the ecosystem and increasing the attention of people and organizations related to startups.
Businesses benefit from accelerators network:
Mitra Ferdows stressed that working in the acceleration space allows businesses to benefit from the experiences of companies of the same age in addition to using coaching, capital, and training services, and to be able to share their experiences in a shared work environment and in the neighborhood of other teams and they can learn about customer acquisition and customer relationship. Today, the role of communication in any field is well known to everyone. Suppose you have an idea to solve a problem in an industry! If you go to the owners of those industries and spend all the time and money to introduce your idea, is it better, or get help from someone who has access to all the people active in that industry and has worked with them before!? The answer is clear. The extensive communication network in accelerators helps owners of ideas and products to identify opportunities, negotiate, and communicate with industry owners and most importantly benefit from the experiences and opinions of a large number of people with experience in any specialized field, Do their business more easily and with less time and money.
Different terms and conditions accelerators define to allocate their budget in businesses:
There are several models for allocating accelerator capital to startups. Some acceleration programs do not allow you to withdraw money from this budget for yourself or your team members. Some do not give you cash and give you facilities worth that money. Others do not pay at first and ask you for an invoice and pay later. Others give money to the founder in stages, based on the progress and needs of the work, and have no restrictions on withdrawals as salaries. But more important and valuable than money is the network of mentors and communications that accelerators have. Because many of these people and relationships cannot be achieved with money, and also, their impact is much greater than limited money.