Getting accepted into an accelerator like Y Combinator or Techstars is a major step forward for any startup. Given the rising number of accelerators and dollars invested into early0stage companies, getting into any accelerator is beneficial for a startup.

But how does a founder get their company into an accelerator, and when is the right time to apply?

While it is entirely possible for any startup to get accepted into an accelerator, there are numerous factors that need to be thought about before a founder decides to submit their company for consideration.

Hopefully, our guide will help you decide applying to an accelerator is right for you, as well as what you can do to make sure your startup is accelerator-ready.

What is the right option for you?

While there are certainly several similarities between incubators, accelerators, and other startup programs, the differences between them must be considered before applying to any of them.

To help you make the right choice for your company, here are some of the main qualities to consider.

Seed accelerators

Seed Accelerators are designed to boost, or accelerate, the growth of a company that is already operating, providing seed funding and mentorship over a 3 to 6 month period. In addition, accelerators only accept a small number of startups in every given cohort and require equity in each company accepted.

Incubators

Incubators are designed primarily for companies that are very early stage, or founders who don’t have an operating company yet and help them validate their idea. Incubators typically offer mentorship and connections to investors, but usually, don’t have a set duration and don’t require equity from the companies accepted.

Other startup programs

There many other startup programs for nearly every stage of launching a startup. For example, the Founder Institute, an idea-stage startup launch program with a comprehensive step-by-step curriculum that helps founders transition from employee to entrepreneur, test their startup ideas, build a team, get their first customers, raise funding, and more.

Why should you apply to an accelerator?

Accelerators can significantly help grow the size and value of your company in a short period of time and can be an ideal gateway to venture capital, particularly for companies where the founders are new to the startup ecosystem.

In addition to capital which is the life-blood of any company, accelerators can help drive early-stage companies forward by providing:

Network : access to expertise and influential people in the industry.

Strategic Advice : “insider” advice and perspective on entrepreneurship.

Validation: immediate validation and “startup stamp of approval”.

Which accelerator should you apply to?

There are a ton of incubators and accelerators that you can apply to, but it’s worth noting that they’re not all created equal. Your will have to do some homework and figure which one is best for you and your particular industry.

In particular, you should consider whether the location of the incubator is ideal for your company. You should also strictly evaluate the track record of the accelerator.

Is your startup ready for an accelerator?

Team

“For most startups at this stage, the best predictor of success is the founders. The most important parts of the application are the questions about the founders’ backgrounds and the most impressive things they’ve done. We’re looking for evidence that the founders are smart, effective, and determined.” – Sam Altman (President of Y Combinator)

The primary determinant of the success of an early stage startup is the founding team. You will face a number of challenges as you build out your companies; your product may change, target market may change, but the strength of your founding team is key to making it through the early growing pains. Accelerators will evaluate your team’s potential to work through a variety of conditions.

Smart

Accelerators want to know that your team is knowledgeable in the relevant fields of your industry, can learn new things quickly, can process information and make smart decisions. One of the most important abilities for founders is to learn new skills quickly.

Technical

Similar to most other investors, accelerators need to be convinced that you can build what you say you can. The goal of demo day is to enhance your ability to raise a seed round by creating investor demand. You only have 90 days before demo day.

Your team must be able to build and iterate on your product quickly to make the necessary progress that accelerators expect. It’s very difficult if not impossible for your business to progress at this blistering pace while outsourcing your product development.

Effective

Your team must be effective at convincing people to join your risky startup, to try your broken product, to launch a product on budget etc. You are faced with a series of never-ending challenges while building your company. Similar to other early investors, accelerators need to be convinced that you have the ability to effectively navigate all the challenges your company will face.

Similar to other early investors, accelerators need to be convinced that you have the ability to effectively navigate all the challenges your company will face.

Determined

“If you imagine someone with 100% determination and 100% intelligence you can discard a lot of intelligence before they stop succeeding. But if you stop discarding determination, you very quickly get an ineffectual and perpetual grad student.” – Paul Graham

For startups, persistence is the name of the game. Because persistence is often the difference between success and failure, accelerators use it as a leading indicator for making investment decisions. In your application and interviews, you must show examples of how you were persistent on previous projects.