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What is a startup accelerator?

As the term itself explains, a startup accelerator aims to boost the startup business in its early years of existence. It is a company with more experience, structure and budget to support small businesses, bringing them mentoring, opportunities and investments, among other reinforcements.

A startup, as we’ve said in other texts, is a scalability business, that is, it has a model that allows the customer base to grow without increasing expenses in the same proportion. At the same time, it is considered a high-risk business, as it enters unexplored or unpublished markets. An accelerator comes into play to help a startup break its initial barrier: the break even, the point at which the cost and revenue values ​​are equal.

To be part of an accelerator, a startup must enroll in a selection process. If chosen, your project will be accelerated. The accelerator advises entrepreneurs and helps them to gain market position in various ways, such as making contributions or presenting them to investors. In the mentoring process, there are guidelines for participating in investment rounds, solving institutional problems, human resources suggestions and crisis management.

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The accelerator’s interest in the startup’s success comes from the fact that they start working together. In exchange for the support, the organization keeps gaining equity in each startup it supports. So the more deals under its “umbrella” work, the more growth for the accelerator itself as well.

That’s why the best accelerators on the market are the ones that can leverage the most startups, as not only will this yield profits for the organization, but it will also improve its reputation. Of course, the competition to enter a major accelerator is also fierce, due to the high standards it sets. It is worth preparing well in order to win over this important commercial partner.

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