Business Accelerators
A Business Incubator is a company that helps new and startup companies to develop by providing services such as management training or office space. A Business Accelerator is very similar to an incubator but differs in that they usually have a greater focus on companies entering or growing in a national or global market. Business accelerators are more likely to be financed by venture capitalist looking for an opportunity to finance growth potential through defined action plans. Business accelerators will generally offer all of the services offered by a business incubator. The key difference is the level of hands-on involvement by accelerator management which should increase the chances of success.
Business Accelerator also referred as Seed accelerators are fixed-term, cohort-based programs, that include mentorship and educational components and culminate in a public pitch event or demo day. While traditional business incubators are often government-funded, generally take no equity, and focus on biotech, medical technology, clean tech or product-centric companies, accelerators can be either privately or publicly funded and focus on a wide range of industries.
Main features of business accelerators are:
— The application process is open to anyone, but highly competitive. Y Combinator and TechStars have application acceptance rates between 1% and 3%.
— A seed investment in the startups is usually made, in exchange for equity. Typically, the investment is between US$20,000 and US$50,000 (or GB£10,000 and GB£50,000 in Europe.
—The focus is on small teams, not on individual founders. Accelerators consider that one person is insufficient to handle all the work associated with a startup.
— The startups must “graduate” by a given deadline, typically after 3 months. During this time, they receive intensive mentoring and training, and they are expected to iterate rapidly. Virtually all accelerators end their programs with a “Demo Day”, where the startups present to investors.
— Startups are accepted and supported in cohort batches or classes (the accelerator isn’t an on-demand resource). The peer support and feedback that the classes provide is an important advantage. If the accelerator doesn’t offer a common workspace, the teams will meet periodically.
— The primary value to the entrepreneur is derived from the mentoring, connections, and the recognition of being chosen to be a part of the accelerator. The business model is based on generating venture style returns, not rent, or fees for services.
Seed accelerators do not necessarily need to include a physical space, but many do. The process that startups go through in the accelerator can be separated into five distinct phases: awareness, application, program, demo day, post demo day.
Business Accelerators in India: Microsoft Ventures in India has launched two new accelerator programs.
These two new programs– Accelerator Plus and Scale Up, will focus on helping later stage startups in gaining acceptance in the marketplace. The batch comprises of 11 new technology startups – AdPushup, Frilp, iReff, DailyRounds, Uninstall, iBot, FortunePay, CustomerXPs, FlamencoTech, WAGmob and UberLabs, which were shortlisted by Ravi Narayan, Managing Director, Microsoft Ventures in India along with Samir Kumar, Managing Director, Inventus Capital and Phanindra Sama, Cofounder, Redbus.
In India besides Microsoft Ventures, Tlabs, GSF, The Startup Centre and Kyron among other startup accelerators are becoming increasingly popular and have demonstrated the need for these support systems to exist.
Top 15 startup accelerators in India are:
CATALYZER: Catalyzer Startup Accelerator Program is a 101 days mentorship driven entrepreneurship cohort accelerator program for startups. Twice each year, it select up to 12 startup teams (or individuals) and help them navigate the crucial first stage. Selected startups receive financial support in the form of pre-seed capital, work space, IT facilities and other resources.
Location – Hyderabad
Founded In – 2014
Focus Area – Technology, Brick & Mortar, Social Enterprises and Non Profits.
Funding – INR 5 – 10 lakhs on 7 – 12% equity
Notable Startups – N/A
Reach Out – Sunil Mayreddy
FREEMONT PARTNERS: Freemont is India’s first Global accelerator and incubator, which provides seed funding to entrepreneurs focused on technology driven startups. It provides mentorship, strategic direction and access to local/global mentors and partners.
Location – Mumbai
Founded In – 2012
Focus Area – Mobile, Internet & Cloud
Funding – Seed capital of up to INR 50 Lakhs
Notable Startups – Natural Mantra
Reach Out – Vivek Mohan
GSF ACCELERATOR: GSF Global Accelerator is a 13 week program, it aims to provide select startups with unparalleled access to venture and business networks, personalized & intensive mentoring, and initial capital. GSF Accelerator is designed to help product-oriented startups.
Location – Gurgaon
Founded In – 2012
Focus Area – Internet and Mobile
Funding – $25k – 30K for 5 – 8% equity
Notable Startups – Pokkt, Silverpush, Playcez, Little Eye Labs, Browntape
Reach Out – Rajesh Sawhney
HEALTH START: It is India’s first accelerator program dedicated to supporting startups in healthcare industry through funding, mentorship and other requisite support. It is launched by HealthStart & ISB’s human centered design-focused incubator, DLabs. Its a 20 week program providing selected startups with investment capital to develop their ideas further.
LOCATION – HYDERABAD
Founded In – 2014
Focus Area – Healthcare
Funding – $100k
Notable Startups – N/A
Reach Out – Pradeep K Jaisingh
IACCELERATOR: iAccelerator is a 3- month, mentorship based, intensive residential program for Internet & Mobile startups at CIIE- IIM Ahmedabad.
(Not operational as of now)
Location – Ahmedabad
Founded In – 2009
Focus Area – Data analytics, software, mobile, education etc.
Funding – INR 500k for 3-12% equity
Notable Startups – Innoz, Griddle, Rideshare, Tookitaki
Reach Out – N/A
KYRON ACCELERATOR: Kyron has introduced a new concept of pre-accelerator, which will admit about 20-25 startups. Such startups will be put through a six-month incubation period after which Kyron handpick the companies for its accelerator batches.
Location – Bangalore
Founded In – 2012
Focus Area – Web and Apps
Funding – upto $20k for 5 – 10% equity
Notable Startups – Dronna, Scandid
Reach Out – Vikram Ahuja
MICROSOFT ACCELERATOR: Focused towards promising early-stage startups or first-time entrepreneurs, Microsoft Accelerator runs program of 4 months, starting in January and July every year. Selected startups get strong mentoring, technical guidance and connections to other startups.
Location – Bangalore
Founded In – 2012
Focus Area – Cloud, Internet and Mobile using Microsoft technologies
Funding – N/A
Notable Startups – Explara, Frrole, Nowfloats, Plustxt
Reach Out –Mukund Mohan & Rajinish Menon
TARGET ACCELERATOR: Target Accelerator Program is a 16 week intensive, high touch, immersive and development-oriented program, specially curated for upto five technology startups focused on transforming the global retail industry through innovative and disruptive technologies.
Location – Bangalore
Founded In – 2014
Focus Area – Marketing, Omnichannel, Mobile, Big Data analytics and Merchandising and Supply Chain Technologies.
Funding – $30,000
Notable Startups – Unbxd, muHive, Konotor
Reach Out –Navneet Kapoor
TLABS ACCELERATOR: TLabs, an initiative by Times Internet, is a startup accelerator and early stage seed-fund in India for internet and mobile technology startups. Powered by a panel of 70+ mentors – that includes highly-experienced entrepreneurs and industry professionals, TLabs runs a structured and highly intensive four-month mentoring program for these startups. It also offers a funding of INR 10 Lakh, a co-working space and a host of other benefits from prominent tech partners, to the startups it accepts in the program.
Location – Noida
Founded In – 2012
Focus Area – Internet & Mobile Startups
Funding – INR 10 Lakh against 10% Equity
Notable Startups – Dataweave, Musicfellas, Bluegape, Gradestack, Langhar, News in Shorts
Reach Out – Abhishek Gupta, Abhimanyu Godara
THE MORPHEUS: Before Morpheus had followed a format where it use to provide 4 months intensive engagement / 5 L INR investment and lifetime support. But recently, it has changed the model and as brought in a new / fresh / better way of supporting young startups, where it will start engagement with a startup at a time when the startup and the Morpheus is mutually ready, anytime of the year; for as long as our support is relevant for them. Before it use to focus on startups in the early stage i.e. 0-2 years, not it has started focusing on startups in later stage i.e. 2-5 years / 5-10 years & across other categories.
(Not Operational as of now)
Founded In – 2008
Focus Area – Open for startups in all domains
Funding – No information available as per the new format
Notable Startups – Akosha, Zepo, Commonfloor, CloudEngine
Reach Out –Sameer Guglani & Nandini Hirianniah
THE STARTUP CENTRE: The helps the startups with Business Model Brainstorming, Growth Hacking Strategies, Setting up the Advisory Board and Market Validation, a small amount of Funding and an awesome set of Mentors.
Location – Chennai
Founded In – 2011
Focus Area – Tech
Funding – INR 10 Lakh
Notable Startups – Eventifier
Reach Out –Vijay Anand
VENTURE NURSERY: It is India’s first angel-backed startup accelerator. VN’s acceleration program aims at improving the success probability of the startups and funding for series A. The Acceleration Program offers three months focused Business Acceleration program aimed at enhancing the probability of success of the startup. It works on a hybrid model which includes Acceleration Program as well as ParallelTrack process of acceleration.
Location – Mumbai
Founded In – 2012
Focus Area – Media & Entertainment, Retail, e-Commerce, Consumer Technology, Education and CleanTech.
Funding – Upto 50 Lakhs
Notable Startups – Oravel, Klip, InterviewMaster
Reach Out – Apoorv Ranjan Sharma
ZONESTARTUPS: It is the first Canadian-led accelerator in India, a joint venture between the Bombay Stock Exchange Institute Ltd., (BIL), Ryerson University of Toronto, Canada, Ryerson Futures Inc. (RFI), and Simon Fraser University. It offers State of art infrastructure for 4-6 months and access to mentors – functional experts, business advisors & industry guru’s to the startups.
Location – Mumbai
Founded In – Launched in India in 2014
Focus Area – Mobile, internet and digital media startups across verticals like consumer, enterprise and social
Funding – Funding opportunity of $50k – $750k
Notable Startups – Sismatik, Nimble
Reach Out – Ajay Ramasubramaniam
5IDEAS: It is a seed fund cum accelerator for early stage digital businesses offering unique blend of human, financial and social capital. It collaborates with startups for 6 to 12 months.
Location – Gurgaon
Founded In – 2012
Focus Area – Internet and mobile; niche ecommerce, B2B/SME focused SAAS, intersection of mobile & geo, education, urban parenting, big data and ad tech
Funding – INR 50 lakh to2.5 Cr. for 15 – 30% equity
Notable Startups – Kartrocket
Reach Out –Pearl Uppal & Gaurav Kachru
500 STARTUPS: Founded by Dave McClure famous angel investor from Silicon Valley, 500 Startups run 4 – month accelerator. It’s like a Startup MBA on steroids providing startups access to a network of 1000+ founders, 200+ mentors, and its staff for guidance and mentorship. The 500 Startups is quite active in the Indian startup space and has accelerated and invested in a good number of Indian startups over the past 2 years.
Location – Mountain View, San Francisco, and Mexico City
Founded In – 2010
Focus Area – Open for all domains
Funding – It invests $100k in exchange for 7%, and charge a $25K program fee for a net $75K investment. (Mountain View & San Francisco). And $40k in exchange for 10%, and charge a $12K program fee for a net $28K investment.
Notable Startups – Pricebaba, Tushky, Thinknum
Reach Out –Pankaj Jain