Will Corporate Accelerators Work For Your Business? (Content Princess – SEO)
Seed accelerators or start – up accelerators are programs that feature mentorship, education modules and finish with a demonstration day or a public pitch event. Established corporations can also benefit from connecting with professional accelerators which are run by experienced entrepreneurs. Accelerators centre on a broad range of industries and are particularly important in industries like food, telecommunications, and agriculture that tend to be impervious to change.
Advantages of Corporate Accelerators.
A New Work Culture – Executives and employees learn about new methodologies such as designing a viable product, project management and customer development. As a result, they will begin using them in their work environment.
Case Study – When Windows 10 was introduced it went through numerous repetitions with customers providing opinions through Windows Insider. The product was released before it was completed and it was attuned based on customer responses. The result has been an exceptional success, and Windows 10 has grown faster than any other Windows version.
Ability to Attract More Partnerships and Collaborations – Many companies have concluded that they need to join start-ups to subject them to new technologies and methodologies. This will procure their future in the market. Big corporations can observe start-ups in the initial stages and gain knowledge of the industry and new trends.
Growth of Accelerator Programs.
During the past decade, the growth of accelerator programs has fast-tracked.
- At the start of 2016, there were 170 accelerator programs in the US.
- Each year from 2008 to 2014 the number increased by an average of 50% (Ian Hathaway, a senior fellow in the Metropolitan Policy Program at the Brookings Institute).
- The average evaluation of a company supported by an accelerator is $7.1 million. While this includes hits and flops the result is still good.
Springboard is an accelerator program whose companies have procured $6.5 billion through their lifetime and have an 83% fundraising success rate.
As the chart demonstrates accelerator programs like Springboard work.
Problems Which Can Arise.
Corporations in accelerator programs devise a business plan. This document portrays:
- Product and Services
- Market opportunity.
- A five-year prediction for profit, cash flow and income.
During the implementation stage, the business plan usually doesn’t hold true.
Failure of Mentorship – While good mentorship can be a real bonus the opposite can be detrimental. When there is a wide gap between what the mentor can contribute and the expectations of the start – up, there will be a momentum stall.
Many programs don’t have the recognition to appeal to quality start-ups. There are a lot not delivering but still operating because of high demand. While gaining themselves, they are leaving behind a trail of failed start – ups.
There is obviously a high demand for accelerator programs, and many do succeed. Internal accelerators are difficult to manage. They need heavy Research & Development, a lot of preparation and an effective approach to administration. Companies that are established will see the benefits of working with professional accelerator entrepreneurs. For start-ups, this is the only alternative. In the immediate future, more efficient accelerator archetypes will be required to eliminate existing pitfalls.
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