Boot camps for start-ups

In class we briefly touched on Y Combinator and tech incubators/ accelerators. Accelerators are a really important to pay attention to as graduating from a top accelerator completely changes the math on whether or not a company will succeed. A company that graduates from TechStars, another top accelerator, has a low 13% fail rate vs. the typical start-up fail rate, which runs around 56%. So, at a high level what is an accelerator? 

Accelerators embrace the power of peer-to-peer and expert mentorships. They provide:

·      Circle of like-minded peers

·      Connections with experts

·      Coaching and feedback

·      Demo day motivation and reward

·      Vibrant and engaging co-working space

·      Playbook resources

They tend to be three-month programs that help young or embryonic companies to develop full business plans and pitches. At the end of program have a demo day where graduating companies are given the opportunity to present their pitch to investors and acquirers. Like with business schools, accelerators range in quality and the most prestigious ones have an extremely low acceptance rates (TechStars accepts 1% of applicants). And, like business school, a lot of the value comes from who you meet during the experience both in terms of peers and experts.

There is a great article from Wired about Y Combinator and what makes it special and so successful. Y Combinator is Boot Camp for Startups