HACKER Q&A
📣 capsaicinkid

Naive Question About Accelerators


Hi all,

Hope you are doing well.

I am currently a junior in college working on an early-stage startup and this is my first startup.

I've done some research about accelerators and was wondering what I should be looking for. Furthermore, I am not sure what questions I should be asking when looking at accelerators.

Thanks, Capsaicinkid


  👤 brudgers Accepted Answer ✓
The accelerator should not take cash out of the business.

Cash is fuel for growth.

Good accelerators for startups make their money from growth in the value of their equity in the company.

Since taking cash out of the company for things like rent and fees will slow growth, avoid accelerators that do so...they are making money via rents rather than growth in the underlying value of the company.

Investors who are focused on returns out of a company's cash flow rather than equity are not a good match for a startup. This is most investors in the world and typical of most places except for Silicon Valley (though it is better now than it used to be).

The other feature of good startup investors is that they are not seeking control of the company. They are investing in the people on the belief that they are capable of growing the company.

Good luck.


👤 PaulHoule
You think joining an accelerator is a next step for you?