This presentation explains what business accelerators are and why they make difference for early-stage companies. It also tells how to apply and what are the screening and selection criteria

1. Alena Arens
Strategic Partnership Manager
@elarens
How to Get into a Top Accelerator Program

2. JFDI: who we are
#1 in Southeast Asia, JFDI is Asia’s gateway to a global community
Ø JFDI was the first accelerator in Southeast Asia.
Ø JFDI was recruited by TechStars as first regional member of its Global Accelerator
Network: 50 elite accelerators in 63 cities worldwide. JFDI shares insights gained
creating 908 new startups across 6 continents.
Ø Worldwide, accelerators like JFDI have raised over S$3.2b funding and created
$10b value in hundreds of businesses, like Airbnb, Dropbox, Sendgrid, and Heroku.
Since JFDI’s accelerator launch in 2012 till 2014:
Ø 1075 startup teams from 58 countries have applied for acceleration.
Ø 40 (3.7%) of applicants were accepted
Ø They received S$25k pre-seed investment for 5–15% equity.
Ø 63% of accelerated teams raised follow-on funding averaging S$600,000.
In 3 years, JFDI has secured widespread media coverage because of its regional
impact. In Singapore, its alumni already represent approximately 10% of all ICT
startups funded at seed level.

3. What are accelerators?
Not incubators
Facing market reality in a
fast and structured way:
Ø Intense 3-month
mentorship program,
with deliverables,
milestones and metrics
Ø Meeting customers
from day 1
Ø Skin in the game
Ø Cohorts
Ø DemoDay

4. Why enter an accelerator
Ø Structured program
with milestones
Ø Mentorship: product
development, scaling,
fundraising
Ø Just-in-time advice
Ø Books, articles,
document templates
Ø Community of
investors, mentors,
serial entrepreneurs
Ø Access to potential
customers and
partners
Ø Network of alums in
many countries
Intellectual
Capital
Social
Capital
Ø Access to a large
pool of investors
Ø Smart money
Ø Pre-seed investment
Ø Zero costs for using
space, web access
etc.
Financial
Capital

5. Why enter an accelerator
JFDI Applicants (not
accepted)
JFDI Alums
Probability to raise seed
funding
4% 60%
Average seed investment $250,000-$500,000
by Ardent Capital
S$600,000
Equity given N/A 18%

6. You do not pass Go
Ø Sole founder
Ø No technical expertise
Ø No English
Ø Unequal shareholding
Ø Not coachable
Ø Lies
Ø Not all founders are present
at interview
Ø Not punctual
Ø Poor English
Ø Other commitments
Ø Not enough experience of
working together
Hard
red
flags
So6
red
flags

7. What accelerators are looking for (JFDI’s angle)

8. What accelerators are looking for
Ø The team, the opportunity and
whether the accelerator can
bring value to the companies
Ø Compatibility between the team
and the accelerator’s focus
Ø Full-time team (hacker, hustler,
hipster)
Ø Ability to raise capital
Ø ‘Marketability’ of the team
Ø Team’s ability to communicate
Ø Motivation: is it money, passion
or anything else?
Ø Time to market
Ø Traction: is the team attracting
users or customers? Are they
paying?
Ø What is the stage of product
development (MVP)
Ø Market size for the product
Ø Ability to execute
Tips from TechStars: apply early, show team, show product

9. Investment trends
h"p://tomtunguz.com/hot-­‐sectors-­‐2014/
Ø Software or hardware
+software
Ø “Boring startups” –
enterprise solutions
Ø eCommerce
Ø Trends for hardware, IoT
Ø Solutions for multisided
markets
Ø Healthcare

10. Don’t apply if
Ø You just need money
Ø You have it all sorted out (or you believe you do)
Ø No scalable business model (e.g. service, brick-
and-mortar stores)
Ø You are afraid someone will steal your idea
Ø You are not committed
Ø You are not interested in building a large business
If in doubt, go into a pre-accelerator program
And read this:

11. Increase your chances to be accepted
Ø Understand yourself and your team
Ø Understand your customers
Ø Understand your market
Ø Understand your competition
Ø Make sure you have a business model. Know
what you know and what you don’t, be honest
about it
Ø Do due diligence on the accelerators
Ø Learn basics: lean canvas, customer
discovery, early adopters, traction, MVP, CAC,
LTV, launch pages

12. Structure of Pitch

13. Gentle caution
If you believe that all you need is just money, read about Clinkle

14. General Accelerator to Vertical?
Ø Access to distribution
Ø Access to expertise
Ø Access to labs
Ø Better access to funding
Ø Faster exit
Ø Equi-hire in case of failure
Ø Hardly global business
Ø Often very limited expertise in
early stage businesses
Ø Long decision making
Ø No control over corporate
partners
Pros
Cons
For businesses focused on specific industries a vertical accelerator might be a
good choice
Advice: choose a vertical accelerator powered by a general accelerator

15. Useful links and resources
Effectual Logic: Saras Sarasvathy on the way entrepreneurs think:
http://bit.ly/1zJwgWn
http://bit.ly/1DZTRbI
http://bit.ly/1CBSb6p
How to do Customer interviews: http://bit.ly/1vQOSZM
Customer Development defined by the boss, Steve Blank: http://slidesha.re/17jeUZv
Free Lean LaunchPad course on Udacity, by Steve Blank: http://bit.ly/IEFkIX
Personae by Tristan Kromer: http://bit.ly/1DzLPWz
Personae by Luxr: http://bit.ly/1Msi2mQ
Prioritizing Customer Segments with Justin Wilcox: http://bit.ly/17css9B
Ray Wu's Framework: http://bit.ly/17css9B

16. Ques9ons
If you want to say hi: alena@jfdi.asia
JFDI URL: jfdi.asia