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Startup accelerators were all the rave in the 2010s.
I'm convinced Founder Fellowships will overtake accelerators during the 2020s
I'm convinced Founder Fellowships will overtake accelerators during the 2020s
First off, some definitions.
Accelerators help cohorts of startups grow at the early stages in exchange for a fixed equity amount for everyone.
Example: YC gives you $125k in return for 7% of your company (same terms as everyone in your batch).
Accelerators help cohorts of startups grow at the early stages in exchange for a fixed equity amount for everyone.
Example: YC gives you $125k in return for 7% of your company (same terms as everyone in your batch).
Founder fellowships work with founders earlier on and are more focused on the growth of the founder > startup.
Most importantly, they don't take a fixed % of each company, but usually take cash or some flexible payment.
Most importantly, they don't take a fixed % of each company, but usually take cash or some flexible payment.
There are some exceptions of valuable programs like Y Combinator where the program and the recognition founders get are worth that 7%.
But to the millions of emerging startups being built in bedrooms all over the world, there're more founder-friendly options!
But to the millions of emerging startups being built in bedrooms all over the world, there're more founder-friendly options!
Founders should be very rigorous when it comes to giving away equity.
Founder Fellowships are more founder-friendly because you can enroll earlier on, find a community of founders to guide your journey, and not hurt your future cap table in the long term.
Founder Fellowships are more founder-friendly because you can enroll earlier on, find a community of founders to guide your journey, and not hurt your future cap table in the long term.
It's really really hard to set a universal valuation for a cohort of startups from different regions of the world. I'm not convinced the "fixed equity" deal will continue to make sense outside of those outlier cases.
Fellowships getting paid in $ > equity solve that.
Fellowships getting paid in $ > equity solve that.
You don't need to fly to San Francisco!
These fellowships are a lot more global because they can account for the purchasing parity differences and reach more global founders. I find this to be particularly true for sector-specific fellowships.
These fellowships are a lot more global because they can account for the purchasing parity differences and reach more global founders. I find this to be particularly true for sector-specific fellowships.
It's important to understand the mechanics of running both – running fellowships is a lot more scalable (a lot more like a school) compared to accelerators.
Since there are more founders in each fellowship, community is a bigger part of the experience.
Since there are more founders in each fellowship, community is a bigger part of the experience.
I expect to see 100s of new vertical/region specific fellowships emerge this decade:
- Generalist: @beondeck @DayOneD1, tacklebox, @foundergym
- Edtech/FoW: @transcendnet @4pt0schools
- Regional: @GRID110 (LA), @latitudlatam + Boostribe (LATAM)
Which ones am I missing?
- Generalist: @beondeck @DayOneD1, tacklebox, @foundergym
- Edtech/FoW: @transcendnet @4pt0schools
- Regional: @GRID110 (LA), @latitudlatam + Boostribe (LATAM)
Which ones am I missing?
