Tech advisory as a part of startup accelerator programs is crucial
Including tech advisory in acceleration programs for early-stage startups can be the key factor to their future success.
1. 2. 2021
We often hear from accelerators that in early-stage startups technical readiness, or let's say the quality of code, does not play an important role. What matters more is that your business idea has potential and that the core team has the capabilities to build and run a successful business. Thorough technical due diligence comes into play only during the next rounds of fundraising. Ok, we got it. Yet we still think that tech advisory is key for early-stage startups to succeed later and should not be overlooked.
Tech advisory is key for early-stage startups to succeed later and should not be overlooked.
Tech advisory for early-stage startups is crucial
What good accelerators do is, they take early-stage startups, with an existing team and idea, and accelerate them by improving all aspects of the operation, so that they can scale faster later on. So why not focus on the technical part as well?
Accelerators should find a reliable software development partner as a part of the program for early-stage startups. There are several significant benefits that tech advisory can bring to the start-up and accelerator as well.
A lot of money can be saved by proper use of available resources
At the very beginning, every start-up wants to find the easiest and cheapest way to put their MVP to the market. There are several aspects in which proper technology planning influences how much the MVP will cost. For example, startups face the question of whether to adopt a cheaper and easier-to-implement open-source solution or invest in custom development. Great SW development agencies are also great product builders, understanding which features are necessary for the deployment of the MVP and which features can be implemented later.
Plan the tech stack in advance so it is scalable easily when the time comes
While the main goal of the early-stages is to quickly validate their idea, it does not necessarily mean building their product the dirtiest and quickest way possible. It can be avenged later when hundreds of users start using the product. Dealing with technical debt costs more time, effort, and resources than investing a bit more at the beginning. Taking advice from experienced tech advisors can only be beneficial for early-stage startups, so they don't have to rewrite the whole product from scratch.
Proper tech specification is necessary for start-ups to raise their first investment
Being ready for detailed questions from investors is necessary to boost a start-up's credibility. No doubt that having a detailed business plan is crucial. But going a step further and showing readiness also when it comes to technical solutions is necessary for a successful funding process.
Start-ups need to know how much money they need, to develop and maintain their product and have a comfortable run-rate.
Start-ups need to know how much money they need, to develop and maintain their product and have a comfortable run-rate. Knowing their future development costs allows them to better ascertain how much money they need to raise. VCs also thoroughly examine those cost predictions to see how competent the funders are and whether the business idea is well thought of.
All of this can be secured by an experienced software house, which built a lot of products in the past. If accelerators and incubators include in their programs technical advisory and support, start-ups’ chances of raising the VC capital increase dramatically.
A lot of startups might need a reliable tech partner from the very beginning
Of course, outsourcing software is not for every startup and not for every stage of the startup. Nevertheless, certain startups will look to outsource non-core parts of their technology very early in their development. And there are several benefits of doing so. It should be part of accelerators’ added value, to have the right SW partner ready when the need arises.
Reliable SW development partners or tech experts have the skills and know-how to support founders at every step of the way, from choosing the technology for their project, preparing tech specifications, to launching MVP.
And on the way, they can save you a bunch of money and minimize or avoid technical debt to prevent you from complications that may arise when the product is used by many users. No, startups don't need to outsource the whole development, but an advisory from experienced tech people is never a bad idea. Accelerators and incubators should therefore think about reliable software development partners as a part of the program for early-stage startups.