Company Forensics | Slidebean Accelerator programs: are they still worth it?
Oct 28, 2020
Steve Barsh, Managing Partner at Dreamit Ventures and former entrepreneur, dives into the evolving landscape of startup accelerators. He shares his journey from founding Paclate to investing in startups, giving insights on why many traditional accelerators fall short. Steve discusses Dreamit's shift to focus on later-stage startups, critiques typical accelerator valuations, and redefines support with innovative investor sprints. He emphasizes the importance of founder motivation, particularly among HealthTech innovators, and offers strategic advice on accessing networks without relocating.
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Shutting Down When The Trajectory Fails
- Steve shut down Paclate after investors concluded it couldn't go 'to the moon'.
- He framed the shutdown as a mutual, pragmatic decision to avoid throwing good money after bad.
Accelerator To Pre-Investment Venture Fund
- Dreamit evolved from an accelerator into a venture fund with a pre-investment program.
- They add material value first, then make investments after companies show traction.
Don't Sell Equity For Low Accelerator Checks
- Avoid accelerators that offer upfront small checks at low implied valuations unless you need that specific network.
- Prefer programs that target slightly later-stage startups and invest at fair market valuations.