- What are the main characteristics of start-up accelerators?
- Public or private and generalist or specialised are some of the types of accelerators that exist.
Startup accelerators are support programmes for emerging companies in their initial phase.
By offering training, mentoring, investment or networking for a limited period of time, the aim is to boost the rapid growth of these companies by helping to validate their business models or obtain funding to scale up the project.
What are the characteristics of startup accelerators?
One of the main characteristics of a startup accelerator is the moment when the relationship with these emerging companies begins, since they do so when they are already up and running. The difference with startup incubators is that there the collaboration begins at earlier stages.
Another characteristic feature of accelerators is that they are intensive programmes with time constraints and a duration that often does not exceed six months.
As mentioned above, mentoring and training is another characteristic of startup accelerators. The previous experiences of highly experienced entrepreneurs, experts or even founders of successful startups provide support to improve the skills of the accelerated startups in various areas.
Funding is another characteristic of accelerators, which usually offer an initial investment in exchange for a percentage of the start-up company. Also linked to funding is the possibility of connecting with other networks of external investors for future rounds of funding.
However, this connection with investors does not have to be solely and necessarily for financial reasons. The networking task of accelerators helps bring them closer to other entrepreneurs, investors, potential customers or large companies.
Start-up acceleration programmes usually end with an event known as Demo Day, where a pitch—a brief and persuasive presentation—is given on the company’s progress to potential investors or business partners.
What types of start-up accelerators are there?
The types of accelerators that exist may depend on what considerations are made.
If the ownership of the entity behind them is taken into account, they can be public or private:
- Public accelerators. Some public administrations—ranging from local to state to regional—or universities seek to promote entrepreneurship, innovation, or economic development.
- Private accelerators. Associations, companies or foundations may be behind startup accelerators that promote open innovation, digital transformation or the creation of new businesses.
Another classification of startup accelerators is based on their focus:
- Generalist. As their name suggests, they do not focus on any particular market or sector, but rather accept startups from any field.
- Specialised. Unlike the previous ones, they focus on particular areas so that the support they can offer startups is more tailored and personalised to the specific characteristics and needs of different sectors.
Wayra
Wayra is Telefónica’s corporate venture capital arm. It invests in technology start-ups with the potential to generate innovation within the group and offers open innovation services to third parties.
With a presence in Europe and Latin America, Wayra has invested over €245 million in more than 1,100 start-ups and currently has an active portfolio of over 530, of which more than 200 collaborate with Telefónica.
It also promotes open initiatives through its Alaian and Open Future platforms.
