R/GA Accelerator is a program funded by R/GA, and with partnerhip with Techstars to help and support business startups. The main focus of the R/GA Accelerator is to give a platform to all the creative and talented individuals who have business ideas to create new products, applications, and services. The program also provides design and technical assistance and mentorship for prototype and sale pitches. Some of the current startups are: Shargifi, Astro, Sky Specs, LISNR and Freedom Audio.
Y Combinator is a company that provides startup money of around $120,000. And in exchange, the company takes an average of 7% in return. In addition to providing startup money, the company also provides advice, and connections twice a year of three months. YCombinator also began accepting nonprofit organizations in 2013 and on ward. Some of the startups YCombinatior has funded are: reddit, Dropbox, Homejoy, and Codecademy.
Techstars is one of the America’s most prestigious accelerator programs that provides $118,000 in seed money to startups for the return of around 7-10% equity. The program also provides intensive mentorship, and networking. Techstars is one of the difficult programs to get accepted. Startups can apply for Techstars’ program and the program’s directors judge their viability. Less than 1% of applicants are accepted into the program. Some of the current companies that are funding by Techstars are: DigitalOcean, Sendgrid, Cooley, and Softlayer.
How might these accelerators be important to your process as an entrepreneur?
I think these accelerators are very important to my process as an entrepreneur. Since my product is a video app, I feel that its a very saturated market. Some of the ideas already exists in a wide verity out there, but my only focus would remain on targeting the travelers, and much can I provide with a unique way of organizing their travel videos. Targeting only travelers can put me in a secure side with one unique feature that can differentiate my app from the competitors. I can see myself being a part of Y Combinator program because they can take one good idea and provide you with mentorship, networking, and all that tools that could buildup a successful project.
TechCruch is one of the leading technology news website that was started in 2005. The website is a very useful resource for keep updated with events in the startup world. The website is also a quick way of getting detailed information about founders, funding, investors and links to technology related startup topics. The website is also famous for helping companies get traffic of visitors to their webpages.
IV. THE BUSINESS SIDE OF STARTUPS:
SEED FUNDING: Seed Funding is basically the initial money used to start a new business. Seed money is often comes from the business founder’s personal account, or from friends or family. It is usually a small amount of money because the business is still in its initial stage. The initial expenses of a business such as research and development could be covered with such type of funding.
Series A: is a type of financing that occurs after the seed funding stage. In Series A, the company is generating some revenue from the business, but not as at the stage of generating net profit. In this stage, the business is still looking to accomplish its milestones.
Series B: is the next round of financing process that occurs after a successful series A. In series B stage of financing, the business has accomplished some of its important milestones. Private investors are more likely to finance the business at this stage because the business at this stage has shown somehow a progress of achievements.
IPO: is an abbreviation of Initial Public Offering, which is the first sale of stock to the public. This is usually a crucial stage for a business because it is tough to predict who the particular stock would perform on its initial stage of trading.
M&A acquisition: Is a general term used to refer to the merging of two or more companies. A merger is a process that usually takes place to combine companies to build a new company. An Acquisition occurs when one company purchase another company. In this process no new company is formed.
Angel investor: An investor who provides financial backup for small startups or entrepreneurs. Angel investors are either the business owner themselves or family and friends. The funding provide is usually a one time amount that is used to support the business in its difficult times.
Venture Capitalist: An investor, who either provides funding to new startups or supports small companies that wish to expand but do not have access to other funding. Venture capitalists are willing to invest in such small companies because they can get an handsome amount of profit in return of their investments when the companies are successful. It could be risky for venture investors because if the invested business failed, they might face the risk of loss.
Lean startup: The main point that lean methodology is based on is to improve efficiency. in startup business, efficiency means knowing exactly what customers wants and needs are. It is also about how much are these customers willing to pay and how efficient the product is designed. Without knowing these aspects, it would be a waste of time and money for a business and the investors.
Minimum viable product (MVP):
“A Minimum Viable Product is that version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort.” – Eric Ries
A minimum viable product is a technique of developing a new product, app, or website with sufficient features to satisfy the customers specific needs. After the feedbacks from the product’s initial users, the real product is designed and developed.
Unique value proposition: is also referred as unique selling proposition. It is one of the most essential messages or a powerful statement that will describe how the product is unique or different from the competitors in the market. Unique value proposition also gives an understanding about how to successfully market the product.
Stock options: can be exercised anytime between the date of purchase and the expiration date.
Market traction: is when new companies and startups attract potential investors and gain a better reputation in the marketplace.
Crowdfunding: Is a way to campaign funding for a project or a business startup by raising many small amounts of money from a large number of people. This campaign could be done through the Internet using social media. It is like asking for donation.
Valuation: Is a way to estimate the value of a business that how much does it worth.
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