Entrepreneurs may decide to make their own way, but it is common for many to decide to rely on figures who can be of great help to develop their projects and scale them up quickly. We talk about startup incubators and accelerators, but what exactly is a startup accelerator? How is it different from an incubator?
These are two concepts that are sometimes mistakenly used synonymously, but which have their clear differences. The main one is the phase in which the projects they host are in. Incubators are for people who have an idea, a concept in the air or desire to undertake, that is, they can admit companies even before they have been created, in a seed or initial phase. On the contrary, a startup accelerator helps entrepreneurs with startups that are from an initial phase to a more developed one. Normally, they are for validated projects that have reached the Product/Market Fit, that is, that they have verified that their product or service actually meets a significant existing demand in the market. In addition, they usually have the team already constituted. Their main similarity with incubators - and probably the reason they are so often confused - is that both provide entrepreneurs with physical space, mentors and training and help them to obtain investment. Sometimes, physical space doesn't exist. However, incubators also offer a methodology that is not usually used in accelerators. In accelerators, on the other hand, after completing the program, a pitch is made in front of investors and the objective is usually to close a first round of investment. Before doing so, they helped them find a suitable business model and define their customer acquisition strategy. It is common for some to pivot during the process or to vary the target or business with which they entered the programs.
Types of startup accelerators
There are several types of accelerators, depending on their property and subject matter. We can classify them into 3 different ones:
- Public accelerators- They are those that depend on a public body or institution.- Private accelerators- Accelerators that are born from a private equity initiative.- Corporate accelerators- They tend to set up large companies that are looking for startups to complement their business, acquire talent or diversify into new businesses. They tend to be very sectoral or vertical. This is not a rule that is always given, but sometimes they use a third party to assemble the programs, although they offer them under their brand and using their facilities and staff. Examples: those of Bankia, Seat, Mahou San Miguel Group (Barlab) or Banco Sabadell (BStartup)
These three types of startups have a difference that can work for co-founders. They are left with a different percentage of equity. In the case of public companies, they do not ask for any percentage. Private accelerators are insured between 5% and 15%, although the most common thing in Spain is that they appropriate between 7% and 10%. On the other hand, corporations manage 0% to 10% of equity.
Main startup accelerators in Spain
In recent years in Spain, accelerators have been proliferating more and more, mainly due to the increase in corporate interest in the entrepreneurial world and their decision to launch corporate accelerators for easier access to innovation. However, there are some that are well known and recognized in the private sector:
- Seedrocket- She was one of the first to be born in Spain and one of the most famous. It was created in 2008 and its activities are based in Barcelona.- Way- Accelerator launched by Telefónica in 2011. Although they started with a center in Spain, in a short time they expanded outside our country, opening other points in Latin America and even in the United Kingdom.- Shuttle- It is based in Valencia and is a personal commitment of Juan Roig, founder of the supermarket chain Mercadona.- Connector- Founded by Carlos Blanco and other media figures such as Risto Mejide. It is based in Barcelona and is committed to startups in the seed phase.
