1) Should you do an accelerator?
As always it depends...some considerations...
-Is it a quick decision + $100k check?
-Introduction to a network in a diff geography?
-Help with your fundraising story?
-Connections to an industry?
etc...
A handful are AMAZING. The other thousands in the world, bluntly speaking, are crappy. And then there's everything in between.
Do quick internet research to find out which 1-3 may be a fit per your goal.
And then...
Most alums will say they had an awesome time! Ppl in general are going to be happy w/ their choice because they don't know an alternative life.
BUT, it's impt to find out if they achieved the goal you hope to w/ the program
if you are looking to form a partnership with an insurance carrier, did the alum do that?
You'll find that even at top accelerators, many are NOT able to hit say their fundraising goal post demo day but can hit a portion of it.
I.e. if your goal is $1m but a program helps you get an addl $400k, would you think it's worth it?
Don't let anyone tell you otherwise.
However, the $$ often doesn't get wired until sometime DURING the program.
You won't get the money right away. You can try asking for an advance & sometimes you'll get a partial one.
By running two fundraising processes in parallel, local investors may move faster IF they are afraid US investors will steal the deal.
There's a bit of an effect of that in the US / CAN if you are joining a well known US accelerator, but significantly less effect IMO.
For an acc, they are getting in at a lower valuation, so what they are looking for a successful outcome is < than what downstream VCs are looking for.
Just because you went through an acc, it does NOT mean that most ppl want to now pay $8m cap.
This is why FOMO is impt.
The way you generate it is by having a LOT of investors swarm around you with strong interest.
If your deal will still be around 6 months from now, you have not generated FOMO and you have no command of valuation.
No one wants to pay up at that valuation.
Fundamentally valuation is about supply and demand. Supply of your round. Demand of investors.
I.e. better story telling, LOTS of investor introductions, etc.
Do they do that for everyone? or just the top 10% of companies?
Even if it doesn't work, you can have an amazing network for life. I.e. in starting a new co, joining a batchmate's co
So look into that too. Does the network feed on itself?
Set terms are not really set. All the top acc negotiate even if they say they don't. BUT ONLY if they want to (and in 99% of cases do not). (should also give you a sense of whether you are top 1% in their eyes or not as well 😉)