Early stage tech startups are increasingly following a specific path to get to market. This normally involves following at least some aspects of the lean startup methodology. Many startup founders start by building a prototype (MVP) and strive to achieve product/market fit before seeking investment and scaling on a global basis.
It has long been recognised that simple VC type funds are inadequate in supporting very early stage startups because they are unable to provide enough support. Various incubator and accelerator models emerged to try to address this issue. Incubators evolved through academic and governmental institutions and provide workspace, professional support and access to seed funding. Unfortunately, they have mostly underperformed because there has been a lack of incentive to be ruthless in moving failing ventures up or out.
Accelerators are normally privately funded and take a more performance oriented view. Most are roughly based on the Y-Combinator model which has been highly successful in creating some great success stories. However, Y-combinator has very special advantages associated with their Silicon Valley location, which cannot be simply replicated elsewhere. Many pale imitations have been cloned.
Dreamstake recognises that the internet has the potential to revolutionise early stage funding in much the way it has other industries. An online accelerator solution offers many advantages;
- More scaleable – Most physical incubators/accelerators are based on small cohorts that are limited in the numbers they can accommodate. They are also based in fixed locations. An on-line solution has no such limitations.
- More time sensitive – Physical incubators/accelerators work on a set timescale. This may not coincide with the readiness of the startup.
- More effective- An on-line accelerator such as Dreamstake incorporates a rating algorithm which allows the tracking of startups throughout the process. This makes investment decisions easier and more reliable.
The Dreamstake on-line accelerator is the first of it’s kind and has been evolving for the past couple of years. Next January we will enter a new phase as we build new funding options into the business model. We believe that we have a unique solution for European tech startups that will bring higher levels of support and greater access to funding than previous solutions.
Dreamstake provides end-to-end support for entrepreneurs wishing to get a startup funded in the shortest possible time. The startup rating system allows entrepreneurs and investors to monitor progress. Dreamstake Academy provides guidance on how to create a successful startup. Dreamstake will link startups with suitable mentors and professional advisors.
Startups that have successfully achieved an acceptable rating will be given the opportunity to feature at monthly demo days and investor pitching events.