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Startup accelerators are a great way to take your startup to the next level. These programs provide mentorship and funding. In exchange, you will give them some equity in the business. When many people think of programs like this, YCombinator is the first name that springs to mind. But they aren’t the only company that can help your startup grow. Let’s look at some of the YCombinator alternatives you should explore.
500 Global
This is one of the most well-known YCombinator alternatives. It has helped over 2,700 startups grow into profitable businesses. This strong track record has included working with some of the most successful startup companies of all time, including household names like Canva and Udemy.
This company doesn’t just provide excellent investment. They also help you connect with experts to mentor you on your journey. Even better, they have year-long rolling funding rounds. This gives you several opportunities to apply.
They will provide $150,000 or 6% percent equity. While this is a good deal, there is a catch. If they like your business, they will have the option to provide an additional $500,000 to get 20% equity. Some startup owners won’t want to give away such a large chunk of equity.
Pioneer
If you are early in your startup journey, Pioneer might be ideal for you. There are a few things that set this program apart. First, it is entirely remote. This accelerator focuses on giving you the basics needed to successfully start a business. They have structured this as a game, to make the content more engaging. This approach allows them to open applications each month.
However, unlike other YCombinator alternatives, there is no guarantee of getting funding through Pioneer. But, if you do want to pursue funding, it isn’t going to severely dilute your ownership stake. They can offer $20,000 for 1%. Because they don’t take a lot of equity, you can use their money to grow the business before applying to other startup accelerators or start courting investors.
Techstars
Techstars is one of the largest accelerator programs running. They have helped finance over 2,500 companies. Many people are attracted to this accelerator because of the valuable training they can provide. Interestingly, they have tailored their programs to suit the industry that you want to break into. If you are accepted, you can attend regular events, mingling with industry leaders.
However, this might not be a good option for those needing financing. They only tend to offer a $100,000 convertible note. In exchange, you will need to provide 6% equity.
Google For Startups
If you aren’t interested in funding and just want mentoring, this YCombinator alternative might be perfect for you. In this case, you will be placed in a small group with 10 to 15 other startups. From there, you will be able to work closely with mentors and investors. This program aims to help you overcome the technical challenges that your business is facing. However, this is only available for tech-based startups that use machine learning and AI.
AngelPad
This program is ideal for those who want a more intensive mentoring experience. You’ll be able to work closely with industry experts for 12 weeks. This can give you the tools needed to take your business to the next level.
At the end of the program, you’ll be able to get a financial investment to build your company. This is $120,000 for a 7% stake. This is a relatively competitive offering and should allow you to avoid diluting your ownership stake too far.
However, there is a problem. Limited spots are available, and the programs only run every six months. Because of this, competition is fierce and your odds of being accepted are slim.
Village Capital
Village Capital might be perfect for you if you want to create a startup that will positively change the world. This accelerator takes a unique approach. The businesses in the program decide which startups get accepted. Because of this, they favor entrepreneurs with a strong social focus. Even better, this is a global company, with a wide range of programs to choose from.
Alphalab
This is another accelerator that focuses on small batches. This ensures you can get plenty of quality time with your mentor, soaking up all the wisdom they offer. Alphalab offers a six-month intensive training course, designed to give you the skills needed to run your business. Once you reach the end, they will offer $100,000 for a 2% stake. This low equity level allows you to do further fundraising without diluting your stake.
Conclusion
You don’t need to rely on YCombinator. There are plenty of other startup accelerators to choose from. Many offer more specialized services that might be better at solving industry-specific problems or have smaller groups that give you more time with your mentor. So, take the time to look around and find the right option for you.
