A startup accelerator is a mentor-based program that provides guidance, support and limited funding to young and growing startups usually in exchange for equity. Young startups are usually advised to be a part of a startup accelerator such as Dthafrica and here’s why…
1. Funding; Startup accelerators are usually the first to invest in early stage startups. Apart from the money they invest they also help the startup to cut cost by providing some of the resources they need such as a working space and sometimes free internet as well.
2. Skills development for founders and team members; Accelerators help startup team members develop some strategic documents such as financial plans, marketing strategy, technology roadmaps etc.
3. Support system and provision of resources; Startup accelerators provide a conducive workspace for founders and their teams, they also provide services which are often rendered pro bono or at a reduced price such as services from law firms, patent attorneys, regulatory experts and CFO services interested in advising young startups.
4. Angel Investors; Angel investors include family, friends and people close to startup founders. They are usually more comfortable investing in startups that are under an accelerator as there’s insurance that their team members have been trained in necessary areas and can stand the test of time
By Chinenye Okonkwo
