Why business accelerator matters to a first-time founder
Joining a business accelerator trades equity and several months of intense, fixed-schedule work for speed, mentoring and access to investors. Done well, it compresses a year of learning into a few months and ends with a room full of potential backers. Done badly, it gives away a slice of the company for advice you could have found elsewhere, and pulls you away from customers at the wrong moment.
Examples of business accelerator
A founder joins a three-month cohort with ten other companies and accepts ¥2 million for 6% of the company, which values the business at about ¥33.3 million after the investment. She gets a weekly mentor, workshops and introductions, and presents to investors at a demo day at the end. The calendar is fixed and progress is expected every week. The 6% is gone whether or not anyone invests afterwards.
Common misunderstanding
People treat an accelerator and an incubator as the same thing. An incubator usually works with very early companies over a longer, looser period, often offering space and advice without investing. A business accelerator is time-boxed, runs in cohorts and often invests a small amount in exchange for equity. Check the terms before applying, because the share you give up is permanent while the programme lasts only a few months.
When to use it
Apply when you can use the mentors this quarter, and you are willing to give up shares for that help. Skip it when the cohort sells to a different customer, or when the programme would take the hours you need for the people who already pay you.