Business accelerators offer similar assistance and services, but tend to provide an intense, shorter experience–a boot camp–to help startups launch faster. Some have angel investors and venture capitalists supporting the program in hopes of financing the next Google or Facebook. The best known are Y Combinator in California, TechStars in Colorado (also Boston, New York, and Seattle), and Capital Factory in Texas.
But not all accelerators are geared toward startups. For instance, nextONE Business Accelerator is a nine-month program that helps high-potential minority entrepreneurs achieve scale, create jobs, and generate revenue through contracting opportunities. The program, a joint venture between the Kellogg School of Management at Northwestern University and the Chicago Urban League, has graduated 47 entrepreneurs that on average have improved their profit margins by 10%.
Similarly, the Minority Business Accelerator 2.5+, a program of the Greater Cleveland Partnership, focuses on growing the size, scale, and infrastructure of minority-owned enterprises that have annual revenues of at least $2.5 million. The program serves as a matchmaker, preparing minority-owned businesses for deals and procurement opportunities in the corporate and public sectors. Since 2008 the program has closed 135 deals with African American enterprises and 13 with Hispanic businesses, resulting in 272 jobs created, $2.7 million in lines of credit and bonding secured, and more than $1.2 billion in business opportunities identified.
To find an accelerator program, contact your region’s small business economic development center. Visit www.asbdc-us.org.
Do some research before joining an accelerator. Make sure the program has a solid track record for helping participants get funding and form partnerships with other companies.