In recent years, new accelerator programs have been emerging in every corner of Europe. These programs offer hands-on business training and mentoring to early-stage startups. Their duration and terms can vary significantly; for instance, some might provide financing and in return, startups might give up shares. A notable example is the famous American Y Combinator, which typically invests 500k on 2 different safes. Startups usually join as part of a cohort for a fixed period. By now, there are likely more than a thousand such programs across the continent.
High-potential startups are often sought after to join certain Accelerator programmes – and judging from the outside, don’t they all seem to offer great workshops and mentoring? We wanted to find out: How can Startups know if an Accelerator program is worth it? We spoke to Eric Weber, the founder and CEO of Spinlab. Leipzig-based Spinlab is the only German accelerator among the world’s best, according to UBI Global’s World Benchmark Studies. Joining the discussion was Cristobal Alonso of Startup Wise Guys from Tallinn, one of Europe’s most recognized and top Accelerator programs.
In your opinion, what are the key factors for the success of outstanding accelerator programs?
Cristobal Alonso: Many startup founders value accelerator experiences that don’t require sacrificing equity. However, I believe the real success of an accelerator lies in its ability to invest in all participating teams, preferably early in the program rather than at the end. Depending on the region, accelerator funds in many overlooked markets often act as initial believers in startups, offering a combination of financial backing and sage advice. Additionally, an accelerator’s success is heavily influenced by its follow-on investment capability. An international and global outlook is paramount not only for the accelerator program in recruiting startups but also for the success of the startups themselves. In places like Estonia and the Baltics, where I’m based, a global perspective is mandatory due to the limited size of local markets. Yet, in larger countries like Poland, Spain, or Turkey, a predominantly local focus can hinder a startup’s long-term journey. Lastly, accelerators led by experienced entrepreneurs—rather than merely consultants or project managers—tend to be more attuned to the actual needs of startups, thus providing greater long-term value.
Eric Weber: It’s vital for accelerators to genuinely benefit startups, rather than solely serving the interests of their shareholders. This balance is challenging, especially when major corporations or public institutions are the primary stakeholders, leading to potential conflicts of interest. Hence, the foundational structure of the accelerator is crucial. Real entrepreneurs with firsthand experiences—both triumphs and failures—are indispensable. They understand the nuances of what adds value to startups and can share those lessons as mentors. This is why all our coaches at SpinLab, and at our second location, RootCamp, have either founded startups—successful or otherwise—or have invested in them.
How is your Accelerator program structured?
Eric Weber: Our program adopts a six-month hybrid model. Founders from across Europe come to Leipzig for six intensive weeks, where they undergo personalized workshops and mentoring sessions. Outside these sessions, while our premises are available, we also offer a digital learning academy with various resources. Successful participants receive certification from the HHL Leipzig Graduate School of Management. Our alumni remain part of our community, attending events like the HHL SpinLab Investors Days and more.
Cristobal Alonso: Our program runs between 18 to 22 weeks, adjusting for holidays like Christmas. Originally based in cities like Tallinn, the pandemic pushed us online. Now, we use a hybrid model, blending onsite and online sessions. The in-person engagements often align with tech events for networking opportunities. Our program is divided into five tracks, each led by a specialist coach. A dedicated director oversees the program with the support of investing partners. The content is mainly 1:1 mentoring, and we generally work with cohorts of around 10 startups, though we’re exploring larger groups this year.
How do you scout the best Startups?
Eric Weber: Most of our applicants come through direct submissions. However, we’ve observed that our standout candidates often arrive through recommendations from our satisfied alumni startups. This approach has proven effective for us.
Cristobal Alonso: With a long-standing brand reputation and a sizable existing portfolio of 400+ startups, many founders proactively approach us. While application volume is beneficial, selecting the best remains crucial. We’ve observed a shift towards specialization, and we now run programs in 7 distinct verticals, including our core – SaaS, and newer ones like Proptech and Web3. Referrals, especially from alumni, mentors, and investor networks, play a significant role in bringing in top candidates. Our scouting team actively markets our program, maintains a presence at tech events, and participates in activities like mentoring at hackathons to stay visible and engaged.
What is your process to select Startups?
Eric Weber: Applicants complete an online form, with serious applications reviewed by two people: one from our team and another from our partners or mentors. Feedback is given to each applicant. If successful in this phase, they’re invited to pitch at SpinLab. Here, with our corporate partners’ involvement, we ensure the potential for real pilot projects between startups and partners.
Cristobal Alonso: The selection process can span two weeks to twelve, involving various steps and checks. Initially, our scouting team reviews applications and does technical checks, shortlisting about 40-50% of the applicants. Then, our Managing Director and experts further filter, leaving around 25% for the final selection. General partners of the fund perform the last investability check, with the final decision made collectively. Post-decision, negotiations begin, and while we have a standard deal, we adjust terms based on the startup’s metrics. A term sheet is signed before starting the program.
How do you balance the individual need for coaching versus a standardized approach for all Startups?
Cristobal: While we have general program segments applicable to all, the bulk of our accelerator focuses on tailored 1:1 sessions with the managing director, lead coaches, or expert mentors. When we pivoted to online formats in 2020, we incorporated Google Sprints, tailoring it to fit our founders. This has since become a cornerstone of our program. Through these sprints in areas like marketing and sales, startups operate autonomously but benefit from peer support.
Eric: Our focus weeks emphasize tailored mentoring, workshops, and even role-plays, such as practising investor negotiations or job interviews. Additionally, every startup is paired with a dedicated coach from our team, experienced in both industry and founding. This coach offers regular sessions and can pull in other mentors for specialized queries.
Who would you consider as the most remarkable success story to emerge from your program?
Eric Weber: We had several startups that were successfully exited, for example, Mementor to ResMed, replex to Cisco or Rhebo to Landis+Gyr, while others such as MagnoTherm or Reverion or digitail raised significant amounts of Venture Capital from well-known investors. As we mostly work on B2B topics, they are more famous in their special industries.
Cristobal Alonso: It is basically impossible to select just one and we have to take into account we have a portfolio of 400+ startups and some of them have been with us for 11 years (!). But here are a few examples of the startups that are excelling. In terms of fame, of course, the logical company to show off with is the Estonian mobility unicorn Bolt, however, they haven’t been part of our accelerator and we invested in a later stage, so I would like to give a spotlight to some other startups. There are a lot of really successful FinTech companies in our portfolio like Kevin, Montonio, Finmap, and HeavyFinance. I’m quite fond of CENOS, a startup with numerous PhDs on its team, which is revolutionizing the complex market of simulation software. Another team that is definitely winning the hearts of all of our team and lately has been winning all of the startup competitions in the Baltic countries – Vocal Image – helping people to speak better and also recover from speech-impacting illnesses.
Which advice would you give to programme managers setting up a new Accelerator?
Cristobal: At Startup Wise Guys, we believe the most fundamental trait a program manager needs is a genuine passion for working with founders. Our core value revolves around this enthusiasm for our startup founders, which we prioritize during hiring.
Understanding the specific needs of the startup, based on its growth stage, is vital. It’s essential to avoid being overly process-driven and to tailor solutions specifically to the startup’s unique requirements.
Interestingly, we’ve realized over time that “less is more.” Instead of overwhelming founders with countless mentors and connections, offering fewer but more meaningful ones is more impactful. Founders often experience key insights post-program, so we emphasize allowing implementation time to apply new knowledge during the program, ensuring its practical application.
Lastly, it’s crucial to gather feedback, refine the product and the program, and understand how to personalize it without compromising scalability.
Eric: In the context of our increasingly mature market, I’d advise to consider forming collaborations with established accelerator brands. Such alliances can provide new ventures with insights, credibility, and a stronger foundation from which to launch and operate.
