In a crowded space where startup accelerators are growing like mushrooms after a rainy day, either funded by state or by corporates, it is crucial to find a winning model that attract the right entrepreneurs.
Startup accelerators or incubators are means for startup founders around the world to create their dream, especially in those areas where the startup culture is still growing.
What Are The Current Problems With The Startup Programs Models?
Most startup accelerators and incubators have the standard approach to target early-stage startups, give some funds and host them for 3-6 months (depending on the program) in a co-working space. Despite being a very wide-spread model, it still presents several drawbacks:
- Most of the startup founders tend to be tech-oriented, focusing on building technology rather a product.
- Young startup founders don’t have the right experience to understand what product could be “ready-to-use” by enterprises and tend to focus on consumer-oriented products, which are way more complicated to market and hence to make successful.
- Fewer startups are targeting the B2B space, although this is the best market where revenues can be generated more easily.
- Non-tech founders are usually ignored by many incubators because they don’t have the skills to build products; however, tend to be the few that have a stronger experience in defined industries and are able to spot “winning” ideas.
Is It Possible To Change It?
FasterCapital is trying to change the way things are done. This incubator is shifting the attention towards the beginning of the process, by becoming co-founder and co-funder. As co-founders, FasterCapital works on developing the software side of the startup (mobile, web). As cofunders, FasterCapial co-funds the startup from idea stage and until it can generate revenues. With FasterCapital the entrepreneurs are not left alone and the incubator is ready to support the startup and finance it over a period of one to two years until it starts to generate income.
As an incubator, they provide idea validation, feasibility study, market analysis, product development, help in sales/marketing, mentorship and financial help until the startup is cash flow positive.
FasterCapital offers two programs: “Acceleration Program” and “Incubation Program”.
In the “Acceleration Program”, FasterCapital will provide mentorship, access to capital and extra consulting services (legal, technological and marketing) to startup founders.
What distinguishes FasterCapital, however, is the “Incubation Program” which is targeting non-technical entrepreneurs. FasterCapital will become a (tech) co-founder and co-funder (as one of the first investors). It will provide technical development per equity (up to $500k for each startup). The “Incubation Program” might also appeal to tech entrepreneurs who seek some help in covering some of the early investment in the startup.
The last round of funding has attracted more than 1000 entrepreneurs from more than 60 countries. Now FasterCapital is again looking successful for startup founders from around the world to join their program. The deadline is the 18th of December, 2016. Here’s a direct link to apply for the program!
FasterCapital is a virtual incubator based in Dubai Internet City, UAE. FasterCapital has more than 18 graduated startups, 15 startups in incubation program, 164 startups in the acceleration program plus more than 115 regional partners and 72 offices worldwide. FasterCapital has invested more than 10 million USD since its inception in 2010.