Dear Advisor: What should I consider when launching an accelerator?

Originally published on June 2022, updated July + September 2022, August + September 2023

Having mentored 100+ start-ups at many accelerators in California (including Techstars LA, CTIP (a MedTech Accelerator), FoundersBoost LA, Alley Tech for Good, Alchemist, 805 start-ups, and CoFoundersLab Startup Accelerator) on product market fit, the cross-section of business and technology, data and AI strategy, and pitch decks -- I now get asked for insights, advice and tips for those considering launching new accelerators. :)

I don't have to tell you that it will all be about trade-offs you can make to achieve the outcome(s) you're aiming for. Here’s some advice, to help you better understand your value-add and position your accelerator above the competiton.

As an aside, whenever I consider mentoring at a new start-up accelerator/precellerator/incubator, these are also the questions I ask, to help me decide to mentor there, or conclude that I'm not a fit.

#1 Question: What outcomes would you like to see founders accomplish by the end of the accelerator?

That is, how would you define founder "success" at the end of the program? What will be the cohorts’ (typical) biggest pain point – and one that you’ll be trying to help them solve? Is the outcome a prototype of an MVP? Something else entirely?

For many accelerators, a great outcome is an elevator pitch and a pitch deck. For others, it's the ability for them to raise $X money during and following graduation.
I highly recommend aiming for an MVT (Minimum Viable Test) prototype/wireframe. Dave Parker's book "Trajectory Startup: from Idea to MVP" is a good resource for founders on how to get there.
- Does "success" include them deciding not to pursue their idea?
- Where would you expect them to be/go after graduation?

Positioning

What will be your differentiation from the competition?
Will you be optimizing for outcomes, volume, or support? Or something else entirely? And hopefully not aiming for value, quality, and 1-1 and group support for all, all at the same time?
1. - How do you view your tier support across content, networking, mentoring, and office hours?
  - Will start-ups get to meet and/or get feedback from and/or virtually pitch to investors?
What niche (in industry, specialization, focus, stage, etc.) will you expect to fill?
Who/what will be your competitive landscape for applicants? Which specific accelerators/precellerators/incubators or startup studios will you compete with, based on outcomes, cost, reputation, etc.?
Will you have a thesis/focus, similar to a venture fund?
Do you expect founders to be technical or non-technical? Underrepresented? First-time founders? Or something else entirely?
Will you also have a venture arm to arm a select few/all of the graduates?
What will be the application process?

Programming

What will the applicants be expected to learn during the program? In what format? And length?
Will the content be mostly speaker/panel-based? Training videos followed by Q&A? Book club? A combination? Something else entirely?
- - Regardless of format, I highly recommend covering "101" topics on contracts, financial, equity, customer pain point understanding for value proposition, pitching, technology, and data for product-market fit – for all founders.
How does each piece of content/programming get founders closer to accomplishing the end goal of the program?
- - Having taught and designed many courses before (including for graduate students of UCLA Statistics, on software development best practices for AI), here's my strategy:
    1. 1. Start with outcomes
      2. Draft an outline of topics to get me 1 step closer to the outcomes with each topic
      3. Judiciously cut topics to focus on the most important, value-added concepts that are key to getting one step closer to the outcomes
      4. For each remaining topic, assume you'll have founders who range from novices to advanced expertise on the topic. With this in mind, I design my courses assuming no prior knowledge, but do include topics from novice all the way to advanced -- even if it's "advanced topics to Google on own time" for shorter class sessions. This way, everyone walks away having learned something new that they wouldn't have otherwise -- and can build on what they've learned or already know.
      5. Leave at least 15-20% time of each session for questions.
      6. My graduate students really enjoyed starting each (3-hour) session with a 5-7 minute networking session in breakout rooms, as we waited for everyone to join -- and having at least a 5-minute break every hour.
Will the program be open to remote, hybrid, or local founders only?
What is the expected time commitment for founders?
To help manage expectations, I also recommend sharing "norms" and code of conduct with founders and mentors, covering time commitments, reaching out to mentors, what to expect, etc.
- - At one accelerator I mentored, first-time founders didn’t know – until the very last week – that they could have reached out for a complimentary weekly meeting with me, for the duration of the accelerator.
Will there be a pitch event at the end – or another way – for founders to get introduced to VCs?

Monetization and Costs

How do you expect the program to be self-supporting? Will you be self-funded, charge founders (in cash and/or equity), apply for grants, find sponsors, etc.?
Who will be your core leadership team, potentially helping you run the program?
Will you be charging founders based on success metrics?
Will you be offering scholarships to a select few?
1. - For example, the Founders Institute offers scholarships to the military community.
Will you be offering honorariums or equity in the startup studio to mentors? Or something else?
1. - For example, mentors at 805 start-ups, can get discounts/complimentary tickets for events, for the mentor and/or mentees.
What will you offer the Beta group of your first cohort?

Community

Will you have mentors share expertise with founders? In what format? Will there be a mentoring agreement and mentor matching? What is the time commitment for this, for founders and mentors?
- - As a mentor, it helps to know what the expected time commitment is for the duration of the program, to help me see if I’m a fit. I've turned down (pro bono) mentoring at accelerators when the time commitment is more than 1-2 hours/month, on my schedule.
  - Example: At FoundersBoost, I mentor via a "flipped classroom" format. Before my mentoring session, founders watch the video + review slides from the talk I gave on product market fit, and then we can use the time live for Q&A to cover the most pressing questions around product market fit, product, data, and technology.
  - Example: At CoFoundersLab, mentors are part of panels, speaking on the most pressing topics that founders care about.
  - Example: At CTIP, I'm a part of an advisory board that meets with 2-3 founders quarterly to hear their pitches and give feedback. I tend to focus on advice for product alignment for improving patient outcomes and the quality of care, and how technology can help scale this.
  - Example: At TechStars, I'm a part of "Mentor Madness/Magic" to see which founder(s) are interested in weekly/ad-hoc mentoring about the topics that they care about.
How do you see yourself adding value to the community, which includes mentors?
- - Will they be compensated in equity, similar to FoundersInstitute?
  - Will you host mentor-only events, like 805 start-ups "Mentor Connects" on Discord and in-person "VIP Lunches"?
How will you onboard founders and mentors to the accelerator? And share norms and expectations?
- - I highly recommend the detailed Google/Notion documents of Alchemist and Techstars accelerators, which helped me onboard as a first-time mentor for each accelerator.

If I were Starting One, What Would I Change/Focus on?

Events for mentors to meet and connect with each other
A core curriculum guiding start-ups step-by-step to solve the most common paint points that we start-ups of that stage encounter time and time again (and again!). This includes:
- - Most common pitfalls in legal contracts (which has somehow become my soapbox)
  - How to really, really identify ideal customers and their pain points, before developing an MVP
  - How to DIY an MVT on a shoestring budget via no-code solutions
  - Book club for Dave Parker's book "Trajectory Startup: from Idea to MVP" (or similar)
  - (Shameless plug for tech-/data-focused accelerators) Step-by-step guide to (DIY) getting started with a data strategy for PLG and product-market fit
  - Elevator pitch and pitch deck practice
  - (Over)Communicate Accelerator Norms/Expectations, to make sure that first-time founders don't get lost -- and get as much benefit as everyone else
Guest speakers to walk through their journeys and share expertise about each of the topics covered, to get another POV -- about mistakes they've made, the lessons learned, and how they (finally) found that niche that's resonating with customers
Please don't ask mentors to sign contracts! I've almost walked away from mentoring at 2 accelerators because of how cost-prohibitive it would be for me to hire a lawyer to review, redline, and agree to (pro bono) mentor the start-ups; ultimately, we agreed that a contract was not required for mentors -- and I joined.
Opportunities for mentors to meet with start-ups as a group of 2+, to be able to build on advice and play off each other. (I enjoyed the round-table style of the MedTech Innovator event, where mentors/judges met with a start-up as a group for 20 minutes, to hear the pitch and give advice.)

I can’t wait to hear more about your program. If you’re looking for advisors or mentors for the program, please keep me in mind. You know what questions I'll ask :) Good luck!