New startups need to consider working with a business
accelerator since they provides a means for a business to grow quickly. According to Entreprenuer.com (https://www.entrepreneur.com/article/271000),
there are more than 170 accelerator programs in the U.S.
which offer early-stage startups assistance, mentorship, and/or investment in
exchange for equity and/or fees.
However, getting into a business accelerator is not always
easy. Forbes Magazine has assessed, “Prestigious
startup accelerators like Techstars and Y Combinator (YC) have a lower
acceptance rate (only 1-2%) than Harvard (5%). (https://www.forbes.com/sites/paulinaguditch/2017/05/30/get-into-a-top-startup-accelerator/#147f68e1725f).”
In the article entitled, “The Top Seven Startup Accelerators
and What Makes Each Unique,” Entrepreneur.com takes on this trending
issue. According to Entreprenuer.com, “Y
Combinator remains the largest and best accelerator in the nation, and they
have an unparalleled global reputation in the tech world. The traits that set
them apart are their incredible mentorship and capital network (https://www.entrepreneur.com/article/300026).”
There is also 500 Startups.
"500 Startups is a seed and early stage venture capital fund,
consisting of 4 major funds and 13 micro funds which have invested in startups
in at least 60 countries. Funded startups include Udemy and Credit Karma. Exits
have included sales to Google and Rakuten (https://www.forbes.com/sites/alejandrocremades/2018/08/07/top-10-startup-accelerators-based-on-successful-exits/#393f78734b3b).” It
is a well-established accelerator that has well proven the many benefits of
connecting with a startup accelerator.
Several of the companies that have successfully exited their program are
now known “worldwide.”
Then there is Shark Tank, the reality show in which
entrepreneurs present their business idea on national television. According to ABC news.com, the show has
reinvigorated entrepreneurship in America.
Contestants pitch their ideas to “sharks in a tank” who are industry
moguls that have already established their own empires. Contestants pitch their business ideas in
order to get the sharks to invest in their company. When more than one of the sharks decides to
invest, it can result in a bidding war, thereby increasing the investment. The show represents a televised accelerator experience
for business startups (https://www.cnbc.com/shark-tank/).
What are your chances of getting on Shark Tank? 45,000 people apply to get on the show every year. But
less than one percent of applicants get to pitch their idea to the sharks — and
of that group, only a handful actually make it on TV. https://www.cnbc.com/2017/03/17/5-tips-for-getting-on-shark-tank-from-people-who-have-done-it.html
Is it worth it? According
to Business Insider, Techstars has achieved a 90 percent overall success
rate. While “Y Combinator” also produces
roughly about an 88 percent success rate.
This means at least this percentage of the companies they have worked
with are still up and running or have been acquired by other businesses (https://www.businessinsider.com/why-hardly-any-techstars-companies-fail-2013-3). In fact, just a few of the successful
accelerator exits include Airbnb, Twilio and Classpass.
This is one of the reasons I founded Omega Accelerator. For more information on how to apply to our
accelerator programs, visit http://omegaaccelerator.com/contact/
or email me at Ren@OmegaAccelerator.com
You can also contact me if you would like to advise or
invest in our startups.
