Startup accelerator types
In Part 1 and Part 2 of our marathon of articles about startup accelerators, we’ve talked about what they are, how they operate, and what you should know before the collaboration. Now, we will tell you about its different types, so you could decide: what’s better for your specific project?
Vertical vs Horizontal. Some accelerators target a broad audience of different industries. They choose to develop products that would find their implementation in over one market. For example, Slack targets everyone who aims to communicate freely, not only corporate teams. This is an example of a horizontal startup. Others work in a specific industry and target the projects that would only fit the needs of a narrow market. For example, later on, we’ll talk about Zeroth.AI. This is an accelerator, whose specification is artificial intelligence and machine learning only. This niche approach to work is a prerequisite of a vertical startup accelerator.
Startup accelerators also differ in terms of:
1) Their backing. Accelerators can get funds from governments, universities, corporate companies, or specific individuals. Governments often offer the implementation of the startup in the state’s affairs after the launch. Universities usually support their students and alumni only.
2) Their goals, as there are often startups who work with sustainable projects — those who will solve a set of global problems. For others, it is not fundamental, and they support ventures who will get popularity in society without the implementation in the world-aid.
3) Their flexibility, as for some you will need to move to the city of its residence for the entire duration of the study. Others offer you a remote solution.
4) Their startup’s scale, as some work only with MVPs, and others choose pre-seed and seed ventures.
Asian Startup Accelerators
Based in China, this is the leading startup accelerator in this country. However, they target not only local business ventures but also those from all around the world: “From the world into China and from China to the world”. It is a part of a substantial venture fund called SOSV, which owns four other startup accelerators for hardware and mobile development. As for Chinaccelerator, its 300 mentors from China and other parts of the world produced 150+ startups. Their investment package makes up 150 thousand dollars. This company supports follow-on funding for its ex-students after the launch of the product. They state that 80& of alumni receive first funds after the demo day. Chinaccelerator’s key spotlight is on Cloud Computing, eCommerce, SaaS, Mobile, and Web-Based apps.