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The key to ecosystem sustainability is the smooth and harmonious co-existence of all the components. In addition to the startups themselves, this includes the educational providers, incubator and accelerator programs, investors and funding organizations as well as private and government officials. It is up to each member to contribute to the development and well-being of the ecosystem whether that is through promotions, funding, mentoring services, events, or networking. It all comes down to collaboration.
Startups are by definition a disruptive and innovative solution to a problem. While the solution may already exist, startups are tasked with approaching the situation and solving the problem, in a way that is faster, easier, cheaper and altogether just better. This is often achieved through the use of technology. Startup developers may also consider a business model innovation approach that does not require creating new technology but identifying what existing product can be improved to fit the needs of an existing pool of customers.
The Covid-19 pandemic has negatively affected certain industries and startup ecosystems due to location constraints and access to funding and capital through VC’s may prove challenging. On a broader scale, the financial market will also take a while to recover and we are still not sure how long lockdown measures will be in place. But there are some positive signs in the vertical of health with innovations focusing on prevention, diagnostics and life adaptation services to combat Covid-19.
Let’s assume that you already have a startup going and now you are looking to “scale up”. The first thing to keep in mind is that the foundations that determine whether a startup is even scalable, are set in the very beginning. The plan to scale-up should be in place from the start with the basics: launching an MVP (minimum viable product), market research, a solid team, and a product that fits the market. Scaling is more than just growing though, it is about adding value, products and services to make your customers’ life easier, without increasing costs. The right time to scale up and the way each startup will do it is unique and based on what you have built so far, cash flow, team dynamics and what your concrete goals are for the near future.
A startup accelerator is a mentorship program, for a fixed term, often 3 or 6 months, that provides budding entrepreneurs and startup developers with legal and financial advice, seed capital, networking opportunities, and office space in exchange for equity. Startups that are focused on fast and global scaling can benefit immensely from the mentoring and education provided by mentors and industry veterans. Y Combinator, Techstars and 500 Startups are some of the most well-known and coveted accelerator programs.
A startup incubator is another mentoring and support program offered to startups that can help you get started. While incubators and accelerators appear similar there are a few key differences. Incubators as the name suggests, operate as “nursery”, that provide seed capital and are often less selective in their application process and don’t have a set time frame. Accelerators, on the other hand, are about “accelerating” so they are focused on scaling as fast as possible.