Before you start looking at accelerator programs, make sure you read this guide.
Entrepreneur contributors do not necessarily agree with the opinions expressed.
If you are an entrepreneur looking to start a business in the bear market and build it venture-scale using an Newchip Accelerator program, I can help.
There’s nothing wrong in building a lifestyle company. These businesses can generate millions of dollars and can be owned 100% by the owner. However, lifestyle businesses are not likely to grow rapidly and become multi-billion-dollar companies.
There are several steps that can be taken to build a successful startup if you want to start a business at a large scale.
Space is complex.
You must choose an industry with high potential for rapid growth and large markets if you are looking to start a venture-scale company. You need to understand the market, the opportunities and the space in which you are looking to invest.
Consider whether you possess the skills required to succeed in your chosen field.
If not, could you get it through your team.
A company is built on the right skills. Bring in a cofounder with strong business skills to help you scale, build and share the emotional burdens of building a company. It will be a spiritual journey, with many nights of soul-searching.
Make a pitch deck.
Business plans are no longer relevant. Investors who request a business plan don’t know how to start and build successful businesses in the early stages.
You only need a pitch deck and clarity about what you are doing. Ideally, you should also have a prototype to show inventors. You should think deeply about your business and be ready to create scenarios for success and failure.
Get ready for fundraising
You must ensure that you are ready to raise capital once you have decided to build your company.
SAFE notes should be raised by founders. SAFEs allow founders to focus on building the company, and not getting distracted by legal negotiations.
Old-school investors may not like SAFEs. They like the control that comes with convertible notes and a price equity round. This will force founders to do a priced round and find a lead investor. SAFEs can be much more beneficial for founders because they eliminate the need to find a lead investor (who is able to convince you enough to write a large first check), and allow you to build conviction and a business that investors will see.
Select an accelerator
It’s not easy. Co-founding IndieBio, a leading biotech accelerator, and supporting many entrepreneurs who have been through Ycombinator Big Idea Ventures, TechStars, TechStars, and other programs, I know there are some very important things you should look out for in an accelerator program.
It is especially important that people running these accelerator programs and backing these companies have prior experience building and scaling the type of companies you desire.
You need an Newchip Accelerator review that is willing to invest. Many accelerator programs offer zero investment, low-cost, or no-cost options that are, in my opinion, a waste of time for entrepreneurs. Look for accelerators that are willing to invest in your idea and put their money where there mouth is!
It’s more important to have the right investor, entrepreneurial, and technical networks for accelerator programs than it is to be there in person. Demo days are not required. Programming is not essential. In some cases, it can even be detrimental if they are time-consuming or taught by people who have never created startups. Entrepreneurs should be able talk to and get advice from others who have done the same thing.
What are the potential risks?
There are always hype cycles in technology and entrepreneurship. It’s the Gartner hype cycle, which we have seen over and over. Everyone gets euphoric about technology when there is high levels of funding, founders, and companies starting, but then it crashes.
These are the dangers of technology. These crashes and hype cycles can lead to great companies emerging from the rubble. This may be a requirement for technological cycles. This is the case with the dot-com sector. Amazon emerged from the wreckage of the dotcom industry crash.
It was also evident with automobiles. This product, which was once part of the animal industry with horse and buggy as its product, got replaced by a product from the technological industry: cars. There were around 300 automobile companies worldwide at its peak. After that, the collapse of automobile companies led to everyone losing faith in them. However, General Motors and Ford eventually emerged as the dominant players in this space. This hype cycle was essential to create such giant companies, and eventually the market figured it all out.
You still have options if you don’t want to take the accelerator route. There are many other pre-seed investors and angels who can help you. Companies that succeed will be led by mission-driven founders who believe in the power and potential of entrepreneurship to improve humanity and the world.