How can you use accelerators and incubators to raise capital?

To maximize the incubator/accelerator experience, an entrepreneur’s mindset going in should be to leverage the program to become “investment ready.” This means building a solid market analysis, identifying your business differentiators, and mapping out a path to revenue growth & probability.

Accelerators and Incubators for me, are the first stepping stone to growth. For first time entrepreneurs, it’s an absolute must to get with them. They are the pioneers who build effective solid systems in the initial years, only to help the startups to grow rapidly in the later years. Think of them as the perfect landing spots, which guide you to the best journeys ahead.

Both accelerator and incubator programs can be fantastic resources for growing your network and enriching your knowledge of the entrepreneurial ecosystem. The relationships you'll build, and the mentoring you'll receive are invaluable. The right coaches, mentors, and advisors will help elevate your work to the next level, and as you grow and reach milestones, you'll also lay the groundwork for taking your startup to the next level with investor funding. Don't simply go into these programs with an eye to fundraising. Of course it is important to plan for raising funds, but these programs are really here to set you up for success in the long term, and that is incredibly valuable.

Consider how many women sit within the accelerator program. Women bring distinct types of innovation and creativity to problem-solving because they directly experience the impact of challenges that must be addressed. Involving women in your mentoring and decision-making positions is the secret to unlocking better social, environmental, and economic benefits for all. #TheXXEdge

I was part of the Unreasonable Institute (now called Unchartered), an incubator for social enterprises based out of Boulder, Colorado, to grow my start-up idea of an anti-trafficking organisation. It culminated into Kranti (www.kranti-india.org). What I learnt from that experience was that yes the mentors on the program are useful, but what was really game changing were the other incubatees in my cohort. They became my tribe, my source of mental and emotional support in the difficult and lonely journey of an entrepreneur. So, I would say, choose an incubator based on what kind of incubatees you might meet there, what kind of people you want to form life long bonds with in your entrepreneurial journey.

Attend events, workshops, and networking sessions within the accelerator or incubator. Connect with other founders, program alumni, and industry experts. A strong network can lead to valuable investor introductions.

When it comes to preparing for the application and selection process, there are two things that are an absolute must: (1) Reach out to other founders that went through the program. Founders always want to help each other, so in addition to giving you the inside scoop on their experience (and whether the accelerator was worth their time!) they can also provide insights on how to write a successful application. (2) Attend any office hours or webinars about the accelerator. Beyond learning valuable information about the accelerator experience, these sessions will allow you to make a personal connection with the team running the accelerator. No doubt, them knowing who you are will help with the application process!

Pitch, value proposition, team etc. are all important. But the best way to get into any accelerator are former participants / alumni. So focus your energy there.

Programs invest in success, not in aspiration. When you apply for your program, you need to clearly set apart any language in your presentation that sounds dreamy, and make sure that every word rings of a plan in motion, not mere hopes. The program you are selecting wants to hear that you are on a track record for success, and how they, through their existing tools, can empower your company to move more efficiently in the right direction. In your statement, put your current situation, and clearly state how your current needs align with the programs abilities, and ensure that you already answer any questions that might follow, should you partner.

Working with other founders in the program and learning from each other can make the experience better on multiple fronts too.

Business is war, and unless startups make traction, they fall behind, and eventually starve. On of the top reasons that startups fail are lack of market fit and lack of funds. Without knowledge and traction, you are doomed to slow down. If you have chosen the right program, consisting of experts in your field with previous experience and several successful startups under their belt, you have the right information available to gain traction. The startup nation, Israel, has an expression. Its 'Chutzpah', it means to be bold and push for your goals. Israelis some times come off as rude, but in the startup world, they get what they want, because they know what to ask for and they aren't afraid to ask. Have some chutzpah.

Many accelerators and incubators have investor days or demo days where you can showcase your startup to a room full of potential investors. Be prepared to answer questions and follow up with interested investors.

As you achieve significant milestones or reach key performance indicators (KPIs), share these successes with potential investors. It demonstrates your progress and commitment.

You also need to have a clear value proposition. It’s critical to have a plan, but you also have to show that what you are bringing forward has significant value (ROI or industry application). It not enough to think what you have is great, you have to be able to clearly articulate the value and support claims with data.

If you have set your company up for success by finding a solution/product with a great market fit, and you have enough funds to survive for as long as possible, you have all the cards in your hand to make a good deal with your next investor. Accelerators and incubators should be seen as strategic investor, and as with any investor, an investment is a business deal. Since you will gain a strategic investor, they will most likely have a say in how you do business. You need to make sure that you set yourself up for success by playing hardball to keep as much equity on your end when you make a deal, and to get as much out of the accelerator/incubator as possible.

After initial interactions with potential investors, be persistent in your follow-up. Many investors appreciate entrepreneurs who are proactive in keeping them updated and informed.

I would emphasize that you keep people updated on your achievements and milestones. Doing this using newsletters and update emails will ensure that your partners are in the loop and can support you where needed. I have also seen that supporting the growth of a network or community through sharing your skills and knowledge also places you at an advantage because you become top-of-mind.

You are a busy person. However, keep a journal throughout the process. Not only will you be able to look back on your experience to gain perspective on how far you have come, but when you are wildly successful, your biographer will appreciate it!

In my experience incubators are effective vehicles to get MVP to move in the right direction. Presently two incubators ate running with exciting potential. I will keep you posted with the process.

Something to keep in mind is to always ask for help when you need it. I have seen entrepreneurs struggling with challenges that could have been easily solved by someone within their networks if they had asked for help early enough.