

What is the problem accelerators are solving? - jmacd
http://whoyoucallingajesse.com/past/2013/11/07/problem-accelerators-solving/

======
acgourley
There is a fourth problem they solve: very early stage companies are willing
to raise quick money on terrible terms as long as it doesn't actually set a
valuation for their real seed round. Accelerators are positioned to do this
because they can maintain a pretense that the shitty terms are made up for in
mentoring and other services.

It would be much harder to raise a seed round on a 4M cap if you had just
given an investor effectively a 1M cap 3 months before. But with accelerators
that's not an issue!

~~~
jrodgers
I think that is a problem they create ;) The terms are insane.

------
accelguy
9 out of 10 accelerators out there are bad copies of ycombinator made by
greedy (and cheap) investors trying to ride the startup gravytrain like in the
dotcom years and/or desperate politicians trying to get some of that sweet
gentrification SF complains so much about.

I was unfortunate enough to land in a combination of BOTH: the accelerator was
made by investors with literally ZERO experience with technology companies who
were extremely cheap, and a local government that wasted taxpayer's money on
it. I say waste because most of the money went to friends and family of the
investors/organizers who didn't put a dime out of their collective pockets but
went ahead and hired each other (and each other's acquaintances) to fill
mentor roles within the accelerator.

What a joke that was, we got literally nothing out of the experience, we lost
precious time having to deal with all the bullshit they made us go through.
Contacts? they were nobodies, so no rolodex magic for us. Press? again, a
bunch of nobodies, all press we got was BYO, in fact the accelerator mooched
off our existing contacts with tech blogs and got some coverage for
themselves.

Because the "investors" were cheapstakes along for the ride nobody got any
investments from that network, only one team which secured a line of credit
from a local no-name bank thanks to the local government (again more taxpayer
money).

There should be a tripadvisor for accelerators, there was no way we could know
what we were getting into.

~~~
mamcx
Hey! are you on my Country?

Recently declared as "the most innovate-foster culture of Latin America" or
something like that.

But is also WORSE. You need to spend 6 months, half-time attending talks,
filling stuff and more or less wasting time... all for the _chance_ to
_finally_ meet the investor.

Is a great business for the "accelerators" that are giving US20.000 for each
startup (they "Value"), but only US 2.000 in cash, for the kind of thing THEY
decide to buy (and no startup accelerator program here help in pay salaries,
ie, the people you truly need. Is for buy business cards. Seriously).

The time I waste on that is one of the things I regret more. Saddly, you don't
know the full terms UNTIL you have "win" in the top 100 of 1000, get pass the
interview, fill stuff then get to the point of get that amazing benefits.

~~~
accelguy
No never been to latam

------
infogulch
Thought it was an article about _particle_ accelerators. Dissapointed. _yawn_

~~~
davidcrow
I like the idea of putting founders into a cyclotron, accelerating them to
near the speed of light, and seeing what kind of energy they release when they
collide with other founders.

~~~
davidcrow
But we should put them in inflatable sumo suits for cushioning. Maybe a
helmet.

------
simonlast
"Unlike college, it is extremely hard to know which programs are adding value
and which ones are wasting everyone’s time." Ha.

~~~
jrodgers
My thought there was there are rankings and historical data on employment
success. Sure, it could be disguised as brand success.

------
ChuckMcM
The actual source URL:
[http://whoyoucallingajesse.com/past/2013/11/07/problem-
accel...](http://whoyoucallingajesse.com/past/2013/11/07/problem-accelerators-
solving/)

~~~
jrodgers
That's me!

