How to choose the acceleration program that best fits your needs
RAQUEL RIERA
Recently, there has been a proliferation of acceleration programs in all sectors, but especially in the life sciences and healthcare. In the BioRegion alone, there are currently over 30 acceleration programs that have at some point hosted projects related to this arena. None of them were around in 2010, which shows how important this sector has become over the past decade.
Some of the programs created in the past few years focus exclusively on the life sciences sector, like CRAASH Barcelona, d·HEALTH and CaixaImpulse; others specialize in technology (The Collider and IQS Next Tech) and yet others are multi-sector, such as Barcelona Activa. This boom is a sign of the advantages these programs give participants, if they choose the right one based on the project’s needs. Here we’ll go over what you need to take into account when choosing one, whether you have a startup or a project that hasn’t been established as a company yet.
What do acceleration programs offer?
1. Funding. This is one of the main reasons entrepreneurs choose to participate in an accelerator. The preferred option is to get seed money by participating in the program, as is the case with CaixaImpulse, where projects get up to €100,000 to develop their commercialization plan. In most cases, this funding is tied to a percentage.
Other programs, although they don’t offer cash directly, cover part of the cost of participating in the program. With CRAASH Barcelona, for example, the teams travel to countries all over Europe to validate their business model and the program covers part of the travel expenses. Other accelerators don’t offer money themselves but do have investment funds that invest in the program’s strongest companies. Finally, another type of funding comes through awards given out at the end, like the Barcelona Activa Preaccelera program.
2. Mentoring. One of the contributions par excellence of acceleration programs. Participants get feedback from experts in various areas, with different methodologies and formats, from an established structure in shared sessions to a completely ad hoc format where groups get individual feedback. What sets the programs apart, however, ends up being the quality of the mentors, and that isn’t always easy to know beforehand. Important factors include the mentor’s knowledge of the business model, technology, disease, market and regulatory framework. Plus other things like whether they personally have been an entrepreneur or mentor previously. And especially their network: a mentor with the right connections and contacts can be very valuable to a startup or project. If you want proof, keep reading!
3. Network. Although it may not be clear when starting a program, for most participants, creating a network of relevant contacts is invaluable. This network, forged with help from the faculty, program promoters, mentors and even the other participants, can become very important in later phases of a startup: fundraising, collaborations for testing or clinical trials, developing technology, etc. How international this network of contacts is depends on the type of program. CRAASH Barcelona, for example, is an international program in every way, with international mentors and participants, and Almirall Digital Garden seeks out companies interested in settling in Spain.
4. Training. Every accelerator has a training program that gives entrepreneurs the knowledge they need on various subjects, mainly related to the business model but also including entrepreneurship skills, like for example how to pitch the project. The type and intensity of the training depend on the program and can range from master sessions to workshops on the most significant topics. One example of a very intensive training program is d·HEALTH, a full-time six-month program in which participants get all the knowledge and skills they need to innovate and become entrepreneurs in the healthcare sector.
5. Space. Historically, accelerators were associated with space. Now, however, this aspect varies widely depending on the program. In the life sciences sector, it is important to differentiate between specialized spaces to develop and test technology, like laboratories, and coworking spaces, which are much more readily available in the city. In programs targeting biotech or drug-development projects, it may make more sense to provide space than it does for digital projects, where entrepreneurs can generally use more standard offices.
And in practice, which program is best for me?
No matter how attractive a program seems, they’re not all right for you. Like in most situations in life, it is important to look at the details to make the right match.
1. Startup or project. Having set up a company can be one of the eligibility criteria for some programs. Some only accept projects, like The Collider, and others are for companies, like Conector and Ferrer4Future. How far the technology has been developed or its proximity to market can also be eligibility criteria in some programs.
2. Equity. The fact that the accelerator takes a share of the equity could be incompatible with the capital structure of your startup or have implications for later rounds of funding, which is something to consider.
3. Length and priorities. Acceleration programs tend to last from three to six months. Their intensity and the dedication required vary, but entrepreneurs typically have to devote all or most of their time to the program. That’s why it’s important to be clear on the hours the program will require. Nevertheless, you have to accept that the team’s participation should be a priority: the tasks you’ll undertake in a good acceleration program are for your project and, therefore, beneficial.
4. In person or online. An acceleration program can be totally in person or only require entrepreneurs to be on site for specific sessions and do the rest of the activities online. Given the current situation, many in-person programs have had to adapt to a more virtual or hybrid format, which makes it easier for teams in different countries to participate.
5. Team. In some cases, accelerators require more than one member of the startup or project to participate. For example, in CRAASH Barcelona the entrepreneur has to participate full-time and the clinical and technical leaders, part-time.
6. Internationalization. A program’s degree of internationalization can be something to base your choice on. Some programs give you access to other markets to validate your business model and for collaborations, which can be interesting for companies in advanced stages of development or that intend to move into foreign markets.
Is it worth it?
Participating in an acceleration program is a great learning experience for any entrepreneur. In terms of the project, in a short time you get the chance to validate whether your solution makes sense and has market value, learn to do a good pitch, make contacts and, in some cases, get funding. It also helps you determine which path to follow, as a good acceleration program has to make sure teams do what has to be done at any given moment. As management guru Peter Drucker used to say: “There is nothing so useless as doing efficiently that which should not be done at all”.
On an individual level, accelerators provide highly valuable skills training that is helpful not only for the project you are working on now, but also for any other ventures you undertake in the future. And for entrepreneurial newbies, participating in an acceleration program will give them an experience of the pressure startups face in the real world, and what it’s like to work with very demanding deadlines.
In short: Yes, it’s worth it, very much so. Now it’s time to pick which is best for you and wait to be chosen.
Want to hear some success stories?
Here’s the story of ABLE Human Motion, a spinoff of the Polytechnic University of Catalonia (UPC) that is designing, developing and working to market robotic exoskeletons to augment and improve human mobility. CEO Alfons Carnicero participated in the first edition of CRAASH Barcelona and, after it was over, closed a round of funding that allowed them to go from three to eleven people on staff.
You may also be interested in the experience of the Mowoot team, a startup that was created through the d·HEALTH fellowship program. The founding team, two biologists, a product designer and an engineer, met during the program and came up with a non-invasive device to treat chronic constipation, which affects up to 24% of the general population. It has been on the market since 2017.
