If you’ve founded a startup, you might be wary of letting others have a seat at your cap table. And if you’re an investor, you may not want to touch early-stage startups with a ten foot pole. It’s understandable, especially when you’re trying to find a viable source of investment or a reputable outlet to invest through. But startups are more likely to bloom in a supportive environment, and investors need to make sure the companies they invest in have that. Accelerators can provide this, and more.
An accelerator is defined by SingularityHub as a “startup support program that provides upfront investment, has a competitive application process, cohort-based intensive mentoring, and a duration of two weeks or more with a graduation date.”
According to SingularityHub, accelerators are essential to building sustainable and collaborative entrepreneurial communities. SingularityHub researched 9 startup ecosystems around the world that covered over 5,000 startup ventures, 80 accelerators, and 300 incubator and support programs, and found that on average, startups participating in an accelerator increased their chances of securing funding for the first time as opposed to startups that did not.
However, simply setting up an accelerator is not enough. In fact, past the first round of funding, companies that graduate from weak accelerators often have more trouble raising money than their peers. Accelerators “must provide experienced mentorship, connection to meaningful networks of expertise and funding, and a quality practical training model.” Essentially, accelerators act as the glue between entrepreneurs, investors, mentors, and entire startup ecosystems.
At Quake, we understand this, and we’re proud of our strong mentor and investor networks. We know that our portfolio companies can only benefit from our accelerators as much as we invest in them. That’s why we make sure our cohort gets access to not only funding, but also hands-on education and a variety of networking opportunities. Our twelve-week accelerators boast frequent office hours, one-on-one check-ins, and classes from entrepreneurs as well.
In light of TechCrunch’s report that early-stage deal and dollar volume declined in 2017, it is especially important for young companies to have access to a variety of resources and a solid community. Accelerators foster entrepreneurship and innovation, and we’re committed to that at Quake. Interested in one of our accelerators? Apply here. Interested in mentoring or investing? Send us a note.