Ask HN: How do I choose between 2 startup accelerators? | Hacker News Reader

Ask HN: How do I choose between 2 startup accelerators?

8 pointsMateuszMucha13 comments

I have applied to 3 different accelerators and got accepted to 2 and I'm quite close to being accepted into the 3rd. I decided against going with the first one (multiple reasons).

The 2nd one is http://www.axelspringerplugandplay.com/ . Axel Springer is this huge publishing house (the largest in Europe), they have numerous big newspapers (Bild, for example). I'd spend 3 months in Berlin working in their office along with other startups. 25k EUR for 5% equity. Demo day. They recruited in Berlin and Krakow (application -> short pitching & Q&A), so I guess most of the participants will speak German. They started a year ago.

The third is http://startupsauna.com/ . Their recruitment process was much cooler, it involved a few hours of 1 on 1 coaching sessions with 6 mentors. It's 1 month, more business oriented (no time to work on a product) and no money/equity involved (they're a non-profit). They said there's a 10k EUR convertible note along with a 30k grant from Finnish govt. The program ends with a demo day they organise at the Slush conf. They started in 2012.

Both offer mentoring, workshops, all the good stuff. Same with a trip to the Valley for the most promising alumni.

My story: mobile app(s), quite a bit of traction (over 1M downloads), pretty solid plans for rapid and rather inexpensive growth. Enough revenue to support my family, but at least a few months away from that growth. Also need 2-3 people for that (have specific people in mind, Axel Springer's money would make it possible).

This is all I know. I don't have any tools at my disposal to evaluate those two programs. I can't compare mentors, alumni or investor pitching potential. * what's your general opinion based on what you just read? * what questions would you ask the before deciding? * if you know anything about either one of those, please share! * are there some websites that would make the comparison easier for me?

My impression is that it depends on what your startup needs. If it's really just business side help then the "cool" one might be a good fit, but if your product isn't where it needs to be, then not having time to improve it may not be the right fit for your company.

Otherwise, the difference between 5% equity and 0% isn't going to determine if the company makes you wealthy. Hard odds is that they are both worth exactly the same in the long run because to a first approximation all startups fail.

The reason to take investment is to grow. If you need people to grow, then the one that best facilitates that may make the most sense.

Good luck.

Thank you... I'm arriving at the same conclusion. Most of all I want to move forward with the product and Axel Springer's programme is what makes it easier.

When it comes to class-B/C accelerators (not YC et al.) I'd generally completely discount the value of mentoring, their network etc. I'd just evaluate the purely financial value of both investments. And maybe just give Berlin more weight for having a better startup reputation and being closer to Poland (assuming you live there and want to stay there). If you can raise non-accelerator money at better terms consider that too.

Putting things that way, every accelerator outside Silicon Valley is class B at best?

There's a lot of Bs and Cs in the Valley too. Techstars is arguably an A and they're in Boulder. I'm not sure about accelerators outside of the US. But yea generally I'd say anyone is B at best until proven otherwise. The distribution of successful accelerators is likely similar to that of successful startups.

Rocket Internet in Berlin is IMHO also an A but with a questionable business model.

OK, so in more general terms - how do I know that an accelerator is class A/B/C?

Well the whole point is unless you know they're an A you shouldn't really care about comparing them, so the investment terms and external factors are probably better indicators (like location) for making that decision.

I'm not dismissing the value of mentoring that easily. Just because I don't go to the Ivy League school doesn't mean it's irrelevant which university I pick. I've spend most of the past 2 months going around and talking to as many smart people I could and it had a tremendous value for me. I greatly improved my business plans, my pitching skills and pretty much everything about my project (everything but the product itself).

My personal opinion: with an app, which already has 1M downloads you don't need those accelerators anymore. Find a good business angel (or two) with expertise in the areas you need and work with them. Also consider moving to one of the StartUp hotspots (SF, London, Berlin...).

As a side note: I'd avoid to be connected to the "Bild" (assuming you are not in the yellow press business).

> I can't compare mentors, alumni or investor pitching potential.

Why not? Those are 3 vital criteria to evaluating the programs value.

Alternatively, suggest hacking together you're own personal accelerator program using an autodidact approach. You can also buy your own ticket to the Valley.

Apply for YC too.

I am applying, but so are 4000 other startups. I love what I do and I feel confident about the project itself, but I am realistic.

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