While promoting our accelerator programs, we get lots of questions regarding logistics, financing, or other parameters that might influence your decision. Here are some answers to the most common questions:
Do I need to relocate to the program’s location?
The accelerator program is on-site: it requires the founders to be physically present in the corporation partner’s premises. Building a fruitful collaboration takes time (many meetings, involving many people from the corporation, etc). You need to be ready to invest those 3 months in the collaboration.
During that time, we also help you develop your business better in many ways, which in turn helps you structure and define the collaboration. This also requires decision-makers from the startup (the founders and/or anybody that you decide) to be physically present. You need to be able to make strategic decisions quickly during the program.
Of course, we understand time or travel constraints, so it’s ok if, at given times, only one of the founders is present, as long as that person has the authority to drive the collaboration. Some people also prefer to travel back and forth each week. That’s completely up to you: we only require you to be on-site during the meetings, workshops and coaching sessions.
Do you fund travel and accommodation costs?
If you pass the first selection round, you will get invited to the selection bootcamp. We will reimburse your costs of participating in the bootcamp (travel and accommodation, to a reasonable maximum). If during the bootcamp you get selected for the accelerator, Nestholma will invest into your startup an amount enough to take care of your basic needs during the duration of the accelerator. We want to make sure that financing is not the barrier to you applying to our accelerator!
How do you assess the applications?
The selection process involves experts from our partner corporation, as well as from Nestholma. We assess the value of the collaboration between you and the corporation for both sides, as well as your team, your traction / contact to customers, your business idea (from the purely startup side), etc.
Do you invest in the startups?
Nestholma invests in the startups before the accelerator starts (equity in exchange for cash and services). The first investment is expected to cover the costs of the startup for the three months of the accelerator, following investments depend on performance indicators, and will be at the normal valuation of the company. After the accelerator, Nestholma introduces you to dozens of potential customers and investors. Our partner corporation may decide to invest as well after the accelerator, but this decision is independent of the accelerator program itself.
How much do you invest? In which conditions?
Nestholma invests into every startup that participates in our accelerators, up to a maximum of 150k€.
Typically, for ever 100k€ that startups get from Nestholma, they receive 1,4M€ in total founding including other parties.
We make a small investment of 18k€ before the accelerator, in exchange for between 4% and 7% of equity, depending on the maturity of the startup.
We fit more than one of the themes: should we pick one, or apply to both?
When you do the application (only once), select both themes. This gives us more information to analyze your case.
Are there any conditions for participating in the accelerator?
You need to be ready to go through the selection and accelerator process:
- a) invest 3 months in getting to a collaboration with our partner corporation, by being (mostly) presently there
- b) join the Nestholma portfolio to get access to partners in dozens of other countries, and
- c) have a great startup!
How many team members can we move on-site?
We expect you to move between 2 and 5 members on-site, but we don’t have a strict limit (within reason). We ask you how many people you plan on bringing in the application form, so please give your best estimate, and we’ll take it into account.
Do you have a question we didn’t answer here? Leave us a comment below or email me at Daniel @ Nestholma.com