According to the internet it’s thousands of startup accelerators programs & incubators out there, looking for the most talented startups to accelerate.

What started with Y-combinator back in 2005, was followed by Techstars, 500 startups and a couple of thousand other organizations which now all are competing for the same talent, according to Angel Garcia, director of Startupbootcamp IoT, Data & Cybersecurity in Barcelona.

It’s turning into a very crowded space, it’s much harder to find good startups for every round we do.

He continues:

Online I’ve seen lists of thousands of so-called accelerators. Many of them provide mentors, a table to work at and other perks, but they don’t run sustainable businesses.

From the left: Angel Garcia (Startupbootcamp) Patricio Hunt (Intelectium) & Bernat Farrero (itnig).

The business model

Just like venture capital investors, both accelerators and incubators are betting on a large volume of projects, and hope one out ten get’s a big exit.

That’s why it’s hard to say exactly what accelerators that are successful and which that are failing, says itnig president Bernat Farrero and points to the business model:

In practice, we’ve had virtually no time to see any of this models succeed just yet, even the few biggest ones have kept growing their expectations and none has yet consolidated and shown a real business success case.

Unlike most accelerators that are funded by VC’s, Startupbootcamp is funded by corporations that all get access to the products the different startups are creating, according to Garcia.

We’re different from most of the accelerators out there. It’s not only our business model, but 82 percent of our startups that have gone through our program is still going, and that’s a high number.

Evolving into venture builders?

Both Farrero and Hunt used to run accelerator programs, but later chose to leave the space to dedicate a deeper focus on fewer projects.

President Farrero explains that itnig didn’t find it sustainable to have a large number of startups go through a fixed program:

If we look at all of the accelerators today, both the ones we call successful, and all the others, I’ve never heard of anyone being profitable.

Startup studios or venture builders has been gaining more and more tractions lately, with studios like eFounders, Betaworks, Idealab & itnig pumping out new companies annually the last years.

Also Patricio Hunt, managing partner at Intelectium has been transitioning over to an approach of building talented teams, instead of accelerating already existing startups.

We have, as Farrero, evolved into more of a venture builder the last years. We study the markets, talk with corporations and possible future customers, and create products we know are needed.

Talent-focused

Farrero says their approach has changed drastically the last years, they now focus on finding makers:

Instead of using valuable time on accelerating tons of projects, we are using that time to study the markets and current trends, as well as attracting the best talent to come work for us.

Even though Startupbootcamp is working with a different business model, also Garcia stresses the importance of knowing your markets.

As we work in industries where everything is changing very fast, we need to understand the markets better than most people do.

The amount of accelerators getting started is not decreasing, but as the amount of programs increases, the less credibility the accelerator gets.

All the three directors agree that the few accelerators with an established brand will survive, and so will the ones that have implemented sustainable business models, but the rest will have to pivot or innovate into something new, something startups actually need.

To get the full interview, go to the video in top of the article.


The post was written by Sindre Hopland, media manager at itnig.

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A.

ALTERNATIVE PLANS FOR THE MWC WEEK AT ITNIG

The Mobile World Capital and 4YFN have been cancelled! Not only it’s a shame that such a great and needed week won’t be happening, but also it’s a problem for all the people that were counting on it, bought their flights, booked hotels and had everything set to enjoy and make the most out of it. 

Because of this, Itnig is organizing a series of alternative events, workshops and activities that same week. We think networking is the main reason to gather all the entrepreneurs and startup community under our roof. 

Here are the events and activities happening at Itnig’s MWC Alternative Week:

Startup Networking Breakfast – February 25 10:00-11:30

Enjoy breakfast and coffee in a networking environment full of interesting people.  Come and join us at our Coffice space for  some pastries, coffee, juice, fruits & more.  The ticket includes the  networking breakfast + coworking space for the day. Buy your ticket here

Boosting your code quality with clang tools with Carlos Jimenez Rams – February 25 19:00 – 21:00

This talk will cover some of the different clang tools and how these tools could help you and your team to improve the code quality.  Come to Itnig Coffice to learn more about this topic while also getting to know new people. This event will be free. 

Pitch to Investors SPECIAL EDITION – February 27 18:00 – 21:00

We’re hosting a SPECIAL EDITION for our weekly PITCH TO INVESTORS. This is a pitch session for entrepreneurs to explain their businesses to investors like Bernat Farrero (CEO @ Itnig), Jordi Romero (CEO @ Factorial), Albert Domingo (CEO @ Nextret) or Juan Rodríguez (CEO @ Camaloon). 

You can either attend as a regular attendee or pitch your idea to us! You’ll need to have your ticket in hand, you can buy it here

Networking Mexican Night – MWC alternative party –  February 27, 18:30 – 23:00

Parallel to our Pitch to Investors, we’ll have a Mexican themed networking afterwork. Come to our venue to meet other entrepreneurs and networking with micheladas, nachos & guacamole! Get your ticket here

Afterwork Beers & Networking February 28, 18:30 – 21:30

To end the week properly, we’re making our regular afterwork public! It’s always time for networking, so let’s enjoy a beer, or tow, together at Itnig Coffice. The ticket includes a drink

ATTENTION: Any day of that same week you can come to work in our coworking space from 15€/day. 

So, no time for corona virus fear, let’s enjoy a week full of interesting activities and meet new people to help the community grow! 

Stay tuned for more updates and information, if you’re interested in organizing an event, or if you’re a speaker and don’t have a venue yet, let us know! We’re happy to be able to host and help the community.