
Ask HN: Open accelerator program without the VC? - snoonan
As a new bootstrapped business with an experienced team (read, older with families, mortgages and our own money), we are in a weird place when it comes to traditional accelerator programs.  We can self-fund, have solid track record and experience and know our target market well. It&#x27;s always going to be a 7 digit&#x2F;yr thing. We&#x27;re not on a track interesting to VC at all.  We want to build a good business that grows.<p>What we lack, though, is the explosive boost in everything related to launching a new business that comes from being an accelerator program. We have thought of simulating it, but it&#x27;s clear it&#x27;s not the same.<p>Is there an open option that provides a similar framework for &quot;the rest of us&quot;. If there isn&#x27;t, why not?
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Asparagirl
It's not an accelerator but rather a conference: you want Amy Hoy and Alex
Hillman's BaconBiz conference in Philadelphia
([http://baconbiz.com/](http://baconbiz.com/)), or the Business of Software
conference in Boston
([http://businessofsoftware.org](http://businessofsoftware.org)), or Rob
Walling and Mike Taber's MicroConf in Las Vegas
([http://www.microconf.com/](http://www.microconf.com/)).

All three are for bootstrapped businesses. All three also have incredibly
useful and non-fluffy videos of their past speakers online, well worth
watching even if you can't attend the actual events.

And keep the faith -- the VC model has tremendous drawbacks for many people,
especially those of us who are not willing to essentially become indentured
servants. Bootstrapping is highly underrated.

~~~
snoonan
Thanks! I will definitely dig into these. I absolutely agree regarding VC.
Even if for some reason you DID want VC calling the shots, it's still way too
early. If you look at the company itself in terms of an MVP, why go selling it
to a customer before its ready?

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tomasien
This isn't going to help you, but that's what we did locally (in Richmond, VA)
for the Lighthouse Labs accelerator - no investment, just mentorship, space,
and a demo day. 3 of the companies are growing considerably, but only 2 ended
up raising funding - the other was always going to be bootstrapped. It worked
out great! Our next class is going to get funding (same amount as YC) for 0%
in equity to maintain the integrity of the program, with an option to take
more and give up equity. We're really excited about it and I think someone
with more prestige should do it nationally.

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chippy
I suppose you should consider what it is that an accelerator offers, and what
it is that they cost, how an accelerator actually works and what you are
looking for.

For example for some companies the VC seed funding that an accelerator
provides may not be crucial, but the access to business advice, mentors and
contacts could be. This generally costs equity - would this be something you'd
be after? Are you after no costs, or less costs than the typical startup in an
incubator? Why would an entrepreneur want to invest their time but not their
money?

~~~
snoonan
The cost is definitely a fair point. We could definitely pay for it if it
existed. We may not be looking aggressively for mentors' time, but more of a
framework.

Or, to put it another way, is there a MOOC "course audit" form of YC?

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swampthing
In case it makes you feel any better, YC doesn't really offer a framework for
business (at least in the traditional sense of the word "framework") - it's
more about getting advice, the network, and demo day.

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rjdagost
My experience in trying to raise funding for a business model similar to yours
had me asking the same questions. If you're not shooting for the moon in terms
of business size, VCs (and thus accelerators) are just not interested. They
claim that it takes just as much time to “administer” a large investment as a
small one, and thus they are only interested in the companies that are
swinging for the fences. There seems to be a financing gap for “mid-size”
companies, ones that fall between small local businesses and companies seeking
to be the next Google. There's probably a big opportunity in this niche.

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akg_67
Most US States and Canadian Provinces have Self-employment programs (SEPs)
that provide 8-12 weeks of extensive training using their framework followed
by 6-12 months of one-on-one mentoring and guidance. They also hold networking
events for you to network with past and present members of the program. These
programs are primarily funded and supported by state and federal small
business initiatives.

I went through a similar SEP program in Toronto. I am again considering
similar program in WA state for my bootstrapped business. From my experience,
these programs are better once you have already started your business and have
gone past initial excitement and need some external insights and influence to
develop business further.

Some of these resources may help you identify appropriate programs and
mentoring: Small Business Administration
[http://www.sba.gov/category/navigation-structure/starting-
ma...](http://www.sba.gov/category/navigation-structure/starting-managing-
business/starting-business), SCORE
[http://www.score.org](http://www.score.org), Small Business Development
Center [http://www.wsbdc.org](http://www.wsbdc.org) (if you are WA state, I am
sure other states have similar program).

There are a few VC type funds who invest in businesses with potential for
steady cash flow and not looking for moonshot. These funds typically expect
regular distributions/dividend/return of principal from your business. I
believe a few years ago, Andy Sack in Seattle was raising a similar fund. I am
sure there may be some in your geographical area.

If your business is an established segment, you may be able to find someone
who already started another business in same/similar segment who may be
interested in mentoring and guiding you. Typically, these people tend to be
older age, founders themselves, started from nothing and now want to help
someone else do the same. Clicking with them and chemistry is much more
important here. I have a friend who started an industrial equipment company
who was taken under wing by a guy who was already very successful in
industrial equipment space with his own group of companies. My friend took his
company to $70 million in revenue with guidance from the guy.

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ritwikt
You might want to answer what you want from the accelerator - you seem to be
hinting @ growth - you might want to qualify that further since you seem to be
covered on market access and possibly money

~~~
snoonan
What we find most appealing is the rapid initial launch framework. The growth
is really just growing into our pants. It's not startup growth, rather
comfortable small business growth. A million or two a year in revenue if we
execute right.

The VC path is not attractive for us or for them since there's probably no
exit. That doesn't mean we don't see the strong benefits of the initial huge
push and mindset that accelerators foster. Make sense?

~~~
rikacomet
What you need ask is, what good is the "boost" money, if there won't be 10-20
million in sales (or even more)?

by taking money on what-so-ever terms or SUPPOSE you magically find a lot of
it somewhere, you are only fixing the supply side of things, not the demand.

If the demand is there, as you supposedly make it out to be, why can't in this
day and time, you reach customers more rapidly then you are right now? (and is
there a genuine short-cut? at all??) This is the question you should be asking
yourself.

so in short, how can money help fix that?

In my opinion you are facing a few natural doubts, but the main problem is
that there are two closely knit issues, instead of one. You have to treat the
questions: WHAT MONEY? & HOW SPEND IT? separately.

Sorry, I know your question "seems" more about factual parts, but I believe
that, from the way you put it, you have some intellectual parts as well that
need to be sorted out.

~~~
snoonan
We are bootstrapping, so there's no interest in money or outside investment.
That's not the spirit of the question -- more to do with the huge productivity
and motivational effects around an accelerator-style launch.

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revorad
Not quite what you're looking for, but recently, someone tried an online
incubator idea called nreduce -
[http://joshschwartzman.com/#/nreduce/](http://joshschwartzman.com/#/nreduce/)

I think they shut it down eventually. Find more in old discussions -
[https://hn.algolia.com/?q=nreduce#!/story/forever/0/nreduce](https://hn.algolia.com/?q=nreduce#!/story/forever/0/nreduce)

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danvoell
I am in a similar situation. Every time I think about accelerators I try to
decide if it is a rational decision or one based on ego and desire for
attention. I will probably not be recognized for what I am doing except for
the people that I serve. My company is profitable and will continue growing.
Could an accelerator or a bit of hype speed up my company such that is worth
what I give up in return? Very few accelerators provide an explosive boost.

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X4
May I ask what acceleration means? I always thought it's another word for
money and some pro tips.

 _I, would be happy, if I could join an experienced and older team and start
working on an interesting problem. Doing my M.Sc. in CompSci in Germany atm.
and none of my friends has any entrepreneurial ambitions or skills, which is
depressing and sad. All of them just want a job in the industry. Not really
expecting payment._

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ing33k
Check out SLP
[http://www.startupleadership.com/](http://www.startupleadership.com/).

Also heard several good things from startups who were part of Microsoft
Accelerator (
[https://www.microsoftventures.com/](https://www.microsoftventures.com/) )

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carlosrt
One Million By One Million is an accelerator that doesn't take equity:
[http://1m1m.sramanamitra.com/](http://1m1m.sramanamitra.com/)

[http://www.quora.com/Sramana-Mitra-1](http://www.quora.com/Sramana-Mitra-1)

Disclosure: I have no affiliation with them.

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andrewhyde
Checkout Startup Weekend NEXT [http://www.swnext.co/](http://www.swnext.co/)

Unsure of if you are looking for a peer group to help you through the highs
and lows or a PR plan (accelerator graduates rarely have a huge splash, it is
all about habits formed and community support).

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devinmontgomery
I think this is basically what Kickstarter is. It gives you a defined set of
goals and a deadline. You do a pitch and get money. But instead of that money
buying equity, it buys your product or service, validates your idea, and hooks
you into advice from the best advisors of all - your customers.

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plaxis
You might like to check out NYU Incubators @ 137 Varick Street, DUMBO, and
Urban Futures Lab at 15 Metrotech in BK. Independent accelerators and support
systems attached inside, university support, NYC govt and private company
backing.

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georgespencer
You don't need an accelerator. As far as I can tell from the data, it's
unclear whether there is any net gain to being in an accelerator at all.

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illumen
co-working spaces

