Is joining an accelerator worth it? Singapore startups give the inside view

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It is raining startup accelerators. In the last two years, we have seen accelerators sprouting up and taking root in Singapore.

Accelerators come in all forms: international accelerators like StartupBootCamp and Alpha Camp, both of which have conducted bootcamps globally; big local names teaming up with overseas accelerators like SPH Plug and Play; or DBS Hotspot Pre-accelerator which runs on its own; or a series of local players like Lithan EdTech Accelerator and UNFRAMED.

Infocomm Investments Pte Ltd (IIPL), the wholly-owned investment subsidiary of Singapore’s Infocomm Development Authority (IDA), played a pivotal role in the creation of the accelerator scene. It has provided BASH (Build Amazing start-ups Here), a location in Block 79 and partnered with a number of accelerators to conduct their three-month bootcamps on a rotational basis.

But with all the hype, as a startup, is it worth participating in an accelerator program? I sought the opinions of four startup founders who graduated in the following bootcamps: JFDI.Asia (JFDI), StartupBootCamp FinTech (SBC), SPH Plug and Play (SPHPP) and another who is currently in the DBS Hotspot Pre-accelerator (DBSHP). Due to the sensitivity of information shared, all names have been changed.

Views on bootcamps and promises

Ben’s business is a fintech startup. He decided to join SBC because it was the only fintech-focused accelerator in Singapore at that time. The benefits promised were the pre-seed funding, access to partners like MAS, DBS, PwC, Mastercard & a host of mentors in the financial services space. He agreed that SBC fulfilled their promises in providing him access to the relevant mentors.

Similarly, Ethan joined SPHPP since it was the best fit for his content focused company, where he could learn some related skills from the parent company SPH to turn his focus more to a content provider role.

SPHPP provided funding, grants, mentorship, curriculums and most importantly, link-ups. It was unfortunate though that SPHPP was not that experienced in the education industry, therefore, “we failed to get connected with local big players in the industry.”

Charlie also joined SPHPP because his startup was a digital content play and it was in-line with the focus of the programme. His intent was on learning the methodologies, and he found what he learnt to be useful. His setback was that there was a heavy emphasis on SPH’s internal mentors, and more could have been done to get more external mentors for a different viewpoint.

Alvin is currently in DBSHP. He signed up to push his idea further, but in going through the program, this has changed since then. He commented that, “You would learn Biz Model, design thinking, UI/UX, storyboarding, pirate metrics, basic legals, pitching and fundraising.”

He has made a lot of connections through mentors and investors, and feel that the resources are too overwhelming. “With so much help and freedom that is given, it made us reliant and complacent,” he laughs.

Dave joined JFDI because he felt it was best in this geographic region. He said that, “They certainly put up a good show during demo day with the line-up of investors present so I would say they have delivered on their part.

What is lacking from the whole program is the maturity of the eco-system, the lack of quality mentors with no domain expertise, advice from investors or startup seniors who have not really “made it” before and the overemphasis on demo day pitching.”

He also notes the venue could be improved and the alumni support could be better managed as well.

Term sheets

Follow-on funding

Advice by startups