How to choose the right accelerator for your startup

Photo credit: Kelly Sikkema

Elise is a TIA Star Contributor and publishes high-value content that serves the Asian tech community. Read more from TIA Star Contributors here.

If I were to start a company today, I would be overwhelmed by the wide selection of incubators and accelerators to join. How can you decide which one to join?

I recently spoke on a panel at the SBR 20 Hottest Startups Panel Briefing with Kineret Karin (founder of ImpacTech), Michelle Woo (program head of Oracle), and Kumaran Pillai (founder of Apple Seed Venture Accelerator).

The topic was close to my heart, as I’ve spent the past six years incubating and investing in startups and running accelerator programs.

(L-R) The panel moderator, Michelle Woo (program head of Oracle), Kineret Karin (founder of ImpacTech), Kumaran Pillai (founder of Apple Seed Venture Accelerator), and Elise Tan (funding manager for Entrepreneur First)

If you’re considering to join an accelerator, here are three takeaways from the panel that can help with your decision.

Financially-backed or corporate accelerator

The first question addressed to the panel was regarding the pros and cons of joining a financially-backed or corporate accelerator.

Because each of us either represents one or the other, we had different takes on the topic. (Disclosure: Entrepreneur First (EF), which I represent, is a financially-backed accelerator.)

Beyond the pros and cons, I think it is more important for entrepreneurs to consider their objectives of joining an accelerator. Have they found a co-founder yet? Do they know how to build a business on their own?

For example, some benefits of joining a financially-backed program include finding skilled and experienced co-founders, learning how to identify a feasible and defensible business idea, and getting funding to realize their ideas. The inherent disadvantage is that financially-backed programs take an equity stake in the companies they back.

On the other hand, if your objective is to engage corporate customers on proof-of-concept (POC) pilots or access certain networks and resources, you may find corporate accelerators particularly helpful.

Some corporate accelerators like Oracle, Microsoft, and Google also do not take equity in the participating startups. But of course, there are also shortcomings, like having a shorter period of time for dedicated support. You may also have to provide them with the first right of refusal when you create a new product or start commercializing.

Early-stage startups and accelerators

Measuring potential returns