The Dos and Don’ts of Applying to Startup Accelerators
Tips for Avoiding Common Mistakes and Red Flags for NEW Startup Founders
As a judge in multiple accelerators, I have gained valuable insight into the criteria used to evaluate and accept teams. One key aspect that both investors and judges consider is the presence of red flags. These are warning signs that could indicate potential problems with a startup’s business model, team dynamics, or other factors.
Having participated in more than five accelerators personally, and currently a judge, I have seen firsthand the reasons why even stellar companies and founders may not be accepted. In order to help future participants and founders avoid these pitfalls, I would like to share some valuable advice on how to address potential issues early on.
By identifying and rectifying these red flags before the interview stage, startups can significantly increase their chances of being accepted into their desired accelerator. This can lead to access to invaluable resources and opportunities that can help propel their success.
Without further ado, here’s a list of the top 5 common red flags that startups should work to rectify before applying to accelerators:
- Founders don’t have equal equity. This means that one founder has 10% and is the CTO, but the CEO has 90%. This makes for an unhealthy partnership and shows how much you value your CTO and technical expertise. You want to have a good balance between the founders and the rest of the team, especially those who are on board in the beginning. Unequal equity distribution can lead to an unhealthy partnership and the undervaluation of crucial team members. It’s important to strike a good balance between the founders and the rest of the team, particularly in the early stages of the company.
- Live outside the USA and have no desire to come to the United States of America. Sometimes there are founders who really don’t want or have no plans to come to the USA for the accelerator which means if they aren’t willing to sacrifice their location for a few weeks, what other things are they not willing to sacrifice to build their company (which is always a lot of things in the beginning)???
3. Overconfidence can also be a red flag, as it may suggest an unwillingness to listen to feedback and take advice from others. This can hinder growth and progress, particularly in an accelerator program where feedback and mentorship are essential. Showing some humbleness goes a long way. We’re here to build a lasting community of nice, genuine and honest founders who are willing to open up about their problems and share and confide in others some solutions they’ve come up with. It’s more about giving back sometimes.
4. Unable to leave their existing or current job and jump into the startup full-time. This can be a tricky one but if you want to take the startup seriously, you will have to give up other jobs and focus primarily on the new startup. A reluctance to leave one’s current job and fully commit to the startup may indicate a lack of dedication and motivation. This can be a tricky issue to navigate, but it’s important to take the startup seriously and make sacrifices where necessary.
5. Avoiding questions or not answering the question directly or head-on is also an automatic red flag. Being truthful and honest goes a long way in answering questions. Don’t try to dodge the question and answer something completely unrelated. It’s obvious and we know what you’re doing.
By putting your best foot forward and demonstrating your honesty and trustworthiness as a candidate for an accelerator, you can position yourself for success and unlock incredible opportunities for growth and development. By taking the time to address any red flags early on and proactively working to mitigate them, you can show investors and accelerator programs that you are dedicated, committed, and ready to succeed. With the right mindset, approach, and preparation, you can increase your chances of being accepted into top-tier accelerator programs that are a perfect match for your new startup, and unlock the resources and support you need to take your business to the next level. So go ahead, put your best foot forward, and show the world what you and your startup are capable of achieving!
Dana Loberg is CEO and Founder of Leo AR, the first augmented reality communications platform that gives anyone the power to enrich the world around them with realistic 3D and 4D animated objects and photogrammetry. Follow her @luckyloberg.