Accelerators: Definition, Functions, and Startup Accelerators in Indonesia

Most startup companies choose early-stage accelerators to have a solid foundation and move forward. This type of program is very competitive and can participate in startups from any industry.

In this article, we will explain the importance and benefits of accelerators for startups. Come on, read more to see the explanation!

What is an Accelerator?

In today's business world, the term accelerator is familiar, accelerator is an activity designed to prevent the premature death of a startup. With the help of accelerators, the premature death of startups should be minimized.

Starting a business is a tough step, not just a good idea and a handful of dreams are all it takes to start a business. However, it also requires capital, structural resources and mentoring.

Many new businesses fail to develop and die within 3 years because they do not receive capital support, structural resources and mentoring. That's why nine out of ten startups die during this time.

The death of these young companies is certainly not good for the market. To prevent this, good help is needed, namely with the help of a business accelerator.

Accelerator Function for Startup Companies

1. Funding for Young Businesses

In general, young companies need a large enough capital so that the company remains stable at the beginning of its development. Companies cannot fully provide this capital, so investors are needed.

Accelerator companies are investors who provide financing so that young companies can develop their businesses in such a way that they don't die in a short time. The amount of investment will be adjusted to the program that has been mutually agreed upon.

2. Sponsoring the Young Business Program

Basically, accelerators are great support plans for new businesses that offer growth over a short period of time. That's why accelerators sponsor programs run by young companies.

Startups can use accelerator names when implementing development and funding programs. Borrowing this big name allows new businesses to increase sales.

3. Generate Friendly Competition in the Market

The Business Accelerator is a way for merchants to ensure business success by borrowing the Accelerator company name. This makes it easier for new entrepreneurs to enter the market.

It is easier for business people to mix and attract business partners to create friendly competition, but it is still beneficial to improve business quality. It can be said that the cooperation created creates a healthy competitive environment.

4. Shorten Business Growth Time

Another task of the accelerator is to shorten the growth time for new projects. Usually it takes at least 2 years to open a business and enter the market.

However, the program only lasts for a few months, so startups can save a lot of time and grow faster. Even incubator programs take years to help new businesses thrive.

Startup Accelerators in Indonesia

The following is a list of startup accelerators in Indonesia and the startup names they have assisted in their program.

Google Launchpad Accelerator

Google, one of the biggest technology companies, also launched an accelerator for startups, namely Google Launchpad Accelerator.

They started the program in early 2016. Several startups participating in the Google program are Jojonomic, Seekmi, Sirclo, Kurio, Kakatu and many more.

Plug and Play (PNP)

US-based Plug and Play (PNP) launched an acceleration program in 2017. Some startups that have successfully joined the PNP Accelerator program are Sayurbox, Wonderlabs, Otospector and many more.

Grab Ventures Velocity (GVV)

Who doesn't know Grab, online transportation services? It turns out that they also have a named accelerator Grab Ventures Velocity (GVV). This program is specifically aimed at startups that have entered the post seed phase and wish to expand.

So, that's an explanation of the accelerator that we can share to add to your reference. Hopefully useful, yes!