Accelerators cost money
Today I had an interview with a rep of some local accelerator. She asked me about my project, then told shortly how cool it would be for me if they would accept me - "founders dinners", multiple pitching in front of investors, mentoring, new contacts etc.
At the very end, she mentioned that there is a cost: "just" $2,500. I thanked for the interview and asked about the next step (that I'm not going to make because of the cost) but I had a feeling like being robbed.
I would never even apply for this accelerator if I would know it's not free, but the problem they never mentioned it - their website has only cool stories about their alumni and perks that founder would have. What looks to me at least dishonest.
Or maybe it's normal and I'm just too naive?
No, I wouldn't bother. People try this in lots of different ways. I've seen it for getting published in a list of 'top 10' suppliers article/list. Even for tv programmes. Nasty tactics of trying to sell you in on something.
Yeah, right. I just have never heard such thing about accelerators :(
Business Accelerators are "businesses". They want to make money. Some of them invest in companies with the idea to have a return, some of them sell services or trainings, etc. What is more convenient? It depends on may factors such as your need to get cash, knowledge or network... Sometimes it can be better to pay a low amount than selling a huge share of your business for a little investment.
But, in any case, being transparent from the beginning is a MUST for any business.
We have built a sort of TripAdvisor of funding entities, VCs and Accelerators in a hope of giving more transparency on the world of funding: www.fundingtrip.com The web is still WIP. Good luck with your startups!
Well not everyone accelerator is YCombinator.
Any accelerator which asks for money to join has no big hits, with a poor network. Basically a slight scam. Their main model is the course fees. Stay away from these.
Yes, I will!
But I just don't understand why they even call themselves " the accelerator"?
There are accelerators with good reputations that make an investment at a reasonable equity stake and then ask for a modest program fee (similar to this), where the numbers work and it's not crazy / bad (although this is really dumb).
But if they make more money charging $2,500 per startup vs. investing in the startups they "help", they're not adding enough value. Aim higher :)
Right. I have a strange feeling. Who wants to pay so much just for the opportunity to pitch before investors? Maybe it's better to use this money to build and market the product?