How Accelerators Work

Few hard and fast rules

The “fail fast, fail often” concept is misunderstood.
Entrepreneurs should be “learning machines”–learning from their failures.
Startup growth is usually slow, but not always.
Most startup investors have a 10 to 20-year timeframe in mind.
Entrepreneurs have to be willing to put in that time to make their company succeed.

The 1 percent

Only 1 percent of applicants are accepted to a Techstars accelerator program.
Most applicants will not get in the first time they apply.
Their investors look for six things: team, team, team, progress, market, idea.
The people on the startup team are extremely critical in the early stages.
Entrepreneurs do “stuff”; they make things happen; they run through brick walls.
The markets Techstars invests in are usually either growing or shrinking, not flat.
A great idea is “bonus points,” not crucial, if you have a great team in place.

It’s about the people

It’s important to have a variety of skill sets on the team.
Tech-savvy is great, but you also need to be able to talk to people, or have someone on the team who can.
Founding CEOs will often be replaced as the company grows.
The founder has to be willing to relinquish that position if it’s for the long-term good of the company.
Founders should take pride in their role as the founder; that title will never change!

The decision-makers

The investors choose people they like, who are passionate about what they are doing.
Directors at each of Techstar’s 22 locations have a lot of say in the selection process.
Only 10 to 15 companies (out of hundreds of applicants) are chosen for each location.
Startups should focus on building value for their customers, not on an exit strategy.
Angel investors typically have more patience than venture capitalists; they are more willing to wait for a return on their investment.

Make progress

To get an investor, you have to show that your company is making forward progress.
People who are passionate will do whatever it takes to make things happen.
Keep learning, keep trying.
Techstars’ key “product” is the huge network of contacts and mentors they offer to their startups.

Advice from the Pros