Startup accelerators: What they are, how they work, and the best ones in Spain

At the forefront of innovation and entrepreneurship, Spain has become fertile ground for startups. This business dynamism is driven largely by startup accelerators, entities that have established themselves as key pillars in the country's emerging business ecosystem. Accelerators offer much more than funding; they provide comprehensive support that includes mentorship, access to networks, and essential strategic tools for business growth and scalability.

In the Spanish context, a startup accelerator is defined as an organization focused on propelling the accelerated development of new companies, especially those with high potential for innovation and growth. They are essential entities for overcoming the challenges startups face in their early stages, providing not only capital but also valuable guidance and an environment conducive to collaboration and learning.

The aim of this article is to offer a detailed perspective on the influence and impact of startup accelerators mainly in Spain, with some mentions in Latin America. We will address how these institutions are paving the way for the success of Spanish startups, exploring concrete examples and analyzing the keys to their effectiveness. The analysis aims to be an essential guide for entrepreneurs seeking to better understand how these accelerators can catalyze their success in the competitive business world.

1. What is a startup accelerator?

Difference between an incubator and an accelerator

Understanding the difference between a business incubator and an accelerator is essential for any entrepreneur looking for the right environment for their startup. Incubators and accelerators differ mainly in the stages of development of the companies they support and in the nature of the support they offer.

Incubators focus on companies in their earliest stages, often when they are just defining their product or business model. These institutions usually provide workspace, basic resources, and access to a network of contacts. However, the main focus is on helping entrepreneurs develop a solid idea and turn it into a viable business. Incubators do not usually provide direct financial capital, and their support can extend over a longer period. incubadoras se centran en empresas en sus etapas más tempranas, a menudo cuando apenas están definiendo su producto o modelo de negocio. Estas instituciones suelen proporcionar un espacio de trabajo, recursos básicos y acceso a una red de contactos. Sin embargo, el enfoque principal está en ayudar a los emprendedores a desarrollar una idea sólida y convertirla en un negocio viable. Las incubadoras no suelen proporcionar capital financiero directo y su apoyo puede extenderse durante un período más largo.

On the other hand, accelerators generally select startups that already have a minimum viable product (MVP) and show clear potential for rapid growth. They offer intensive programs that usually last between three and six months, where they receive intensive mentorship, strategic advice, and often seed capital in exchange for an equity stake in the company. These are programs designed to accelerate growth and prepare startups for the next stage, which often involves pitching to investors for more significant funding rounds. aceleradoras generalmente seleccionan startups que ya tienen un producto mínimo viable (MVP) y muestran un potencial claro de crecimiento rápido. Ofrecen programas intensivos que suelen durar entre tres y seis meses, donde reciben mentoría intensiva, asesoramiento estratégico, y a menudo, un capital semilla a cambio de una participación en la empresa. Se trata de programas que están diseñados para acelerar el crecimiento y preparar a las startups para la siguiente etapa, que a menudo implica presentarse a inversores para rondas de financiación más significativas.

The role of accelerators in a startup's development and growth

Accelerators play a fundamental role in the entrepreneurial ecosystem, acting as catalysts for startups to scale quickly. By providing access to valuable resources such as mentorship from industry experts, introductions to a vast network of contacts, and workshops in key areas such as marketing, legal, and finance, accelerators equip companies with the tools needed to overcome critical challenges and avoid common mistakes.

The value of an accelerator lies in its ability to significantly advance the development process of a startup. With the guidance and resources provided, startups can achieve in months what would normally take years. For example, this includes refining their business model, building a solid customer base, and preparing for investor pitches. In addition, exposure to a network of mentors, investors, and other entrepreneurs provides invaluable opportunities to learn, collaborate, and secure funding.

We can say that accelerators are fundamental in the startup ecosystem, providing not only a financial boost but also comprehensive support that is essential for the growth and success of a young company. In such a competitive environment as today’s, choosing the right accelerator can make all the difference in the fate of an emerging startup.

2. How do startup accelerators work?

The acceleration process and stages

The acceleration process is characterized by being intense and structured, usually divided into several key stages. Initially, a rigorous selection of high-potential startups is carried out. Once admitted, startups go through a program that usually lasts from 3 to 6 months.

The typical stages of the program include:

1. Orientation and assessment

Where the specific needs of each startup are identified and clear objectives are established.

2. Intensive development

A mentorship and workshop phase, where work is done on product development, market strategy, and business model.

3. Pitching and networking

Startups prepare to present their projects to investors and connect with a broader network of experts and potential partners.

The importance of mentors and mentoring

Mentors are a crucial part of the acceleration process. Experts offer their experience, knowledge, and networks to startups. Mentoring not only provides guidance in technical and business areas, but also offers moral and strategic support, which is vital in the early and often volatile stages of a startup. Mentors help entrepreneurs navigate challenges, make informed decisions, and avoid common mistakes.

Funding and seed capital

Funding is another fundamental aspect of accelerators. Many accelerators provide seed capital to projects, usually in exchange for an equity stake in the company. Seed capital is essential for startups to finance their initial operations, such as product development, marketing, and hiring staff. In addition to capital, accelerators often help prepare startups for future funding rounds, connecting them with investors and teaching them how to present their projects effectively.

In short, accelerators function as a comprehensive ecosystem that provides not only financial resources, but also access to specialized knowledge and networks, all focused on boosting the rapid growth and success of startups.

3. The best startup accelerators in Spain

Spain stands out as a country with a strong entrepreneurial culture, reflected in its dynamic startup ecosystem. In addition to private accelerators that drive innovation and the development of new companies, there is notable government support in this area.

A significant example is the SME Digitalization Plan, a Spanish government initiative that seeks to strengthen the business sector through the integration of digital technologies. This dual approach, combining efforts from both the private and public sectors, positions Spain as an ideal place for the growth and development of new companies and entrepreneurial projects.

Below we present the most important accelerators in the country.

1. Eatex Food Innovation Hub

The Program for the Development of Innovation and Technology Transfer is an initiative that provides customized innovative solutions for the agri-food sector, collaborating with leading R&D centers in Navarra.

The accelerator focuses on challenges of any level of technological maturity and covers areas such as future agriculture and livestock, new ingredients, healthy foods, Industry 4.0, and waste circularity.

Among its key benefits are access to R&D experts, development of tailor-made solutions, and a success-based investment model, eliminating initial financial risks for participating companies.

2. ScaleUp Spain Network

ScaleUp Spain Network is a program driven by Fundación Innovación Bankinter, Endeavor, and Wayra, designed to support Spanish startups in their transition to scaleups. The program focuses on overcoming the growth and transformation challenges of these companies, anticipating future challenges and fostering the development of their founders and management teams.

The goal is to strengthen the scaleup ecosystem in Spain, helping these companies generate a significant impact on the economy and society in the long term. It offers a blended learning model that combines key concepts and practical cases from recognized founders and experts, both national and international.

It promotes the creation of a collaborative network among founders to share experiences and knowledge. Offered at no cost to selected companies, ScaleUp Spain Network seeks to be a key catalyst in the evolution of startups into scaleups in Spain.

3. Programa Órbita: The Programa Órbita is an acceleration initiative for companies under five years old, focused on scalable and sustainable growth. Of the 10 selected companies, 5 outstanding ones will receive the Órbita Awards after a 360º analysis using Lean Startup and Design Thinking methodologies.

The program includes a detailed review of the business model, advice from experts and mentors, and culminates in an Investor's Day where companies can win €20,000. Offered by CEEI Castellón, Órbita seeks to boost innovative projects with high growth potential.

4. Desafía Berlin Immersion Program

Desafía Berlin, sponsored by ICEX and Red.es, is a support program aimed at Spanish companies in the mobility and automotive sectors, focused on accelerating their internationalization. The selected companies will take part in a two-week immersion program in Berlin, starting on October 23, 2023, preceded by a kick-off session in Madrid.

The program offers in-depth knowledge of Berlin's tech ecosystem, meetings with leaders in the German sector, conferences, mentoring, visits to incubators, education on legal and tax aspects, training, pitch presentations, and networking events. Best of all, it provides the opportunity to build your own network of contacts and access to an alumni community.

Berlin is chosen for its outstanding tech ecosystem, generating unicorns and representing a significant share of the capital invested in Germany. The city is known for its fast average exit time, innovative spirit, diversity of industries and funding, along with a community of international investors and highly skilled workers.

5. Open Future

The Global Open Future, with a presence in Europe and Latin America, connects innovation and entrepreneurship with the business ecosystem through Open Future Hubs. This program is designed to strengthen technology projects, increase the visibility of startups, and internationalize technological solutions. It focuses on the development of new technologies such as Big Data, IoT, AI, cybersecurity, and digital innovation, aimed at CEOs and startup founders, employees, SMEs, and freelancers.

Open Future offers personalized and free training, access to potential investment, connection with Telefónica's business and its clients, and the opportunity to explore international markets. Participants can work from any of Wayra's 7 offices worldwide, make pitches to attract investment, and have the opportunity to become a Wayra Startup. The program also provides exposure in relevant media, discounts with technology providers, and other benefits, facilitating entry into the Telefónica ecosystem.

6. Wayra

Wayra, Telefónica's open innovation hub, focuses on investing in mature, technology-driven startups that can bring innovation to both Telefónica and its global customer network. With a presence in 7 hubs across Europe and Latin America, Wayra seeks startups that are ready to scale and align with sectors such as energy, web 3, insurtech, entertainment, IoT, big data, AI, eHealth, edtech, and fintech.

Wayra's investment can reach up to €350k for a 5% stake, offering access to its global network, the Movistar Activation Programme, and a broad network of investors and experts. Wayra does not lead funding rounds, but it may include clauses to ensure transparency and a strategic relationship with the startup.

Over the years, Wayra has invested more than €160M in startups around the world, with more than 500 active startups and more than 100 doing business with Telefónica. Wayra seeks to be a global scaler for technologically advanced startups ready to grow.

7. Awesome Lab, Desigual's Open Innovation Hub

Awesome Lab, Desigual's open innovation hub, developed in collaboration with Wayra, is dedicated to promoting seed and growth-stage technology startups that can address challenges in the fashion industry.

The program offers startups the opportunity to work with Desigual experts, access to a global network to expand their business, contact with key investors in the ecosystem, visibility through communications and events, and the possibility of developing pilots with specific areas of Desigual. Awesome Lab focuses on fostering innovation and growth in the dynamic fashion sector.

8. Lanzadera

Lanzadera is a startup accelerator and incubator in Valencia, driven by the collective intelligence of startups, mentors, and corporations. The six-month program, with no equity required, focuses on specific goals defined together with experts for each startup.

It offers training, mentoring, and a collaborative environment while maintaining the entrepreneur's autonomy. An initiative by Juan Roig of Mercadona, Lanzadera seeks to provide valuable resources for entrepreneurs, with an annual selection process and a personalized approach that includes diagnosis, measurable goals, and continuous follow-up. With a 10-year track record, it has accelerated more than 1,300 companies across various sectors.

9. B-Combinator

B-Combinator, a Barcelona-based accelerator, focuses on building and scaling startups, helping them achieve their visions and secure investments for growth. It seeks ambitious and passionate teams, especially founders with strong passion and commitment, as many people at B-Combinator have been founders of influential companies.

Its investment approach focuses on digital and software startups because of their high scalability and potential for exponential growth. B-Combinator values teams with synergies, seeking a balance of skills and talent, with at least one passionate CEO and a CTO/CPO dedicated to product development.

Focused on early-stage, pre-seed companies, with a pre-money valuation of up to €5,000,000, B-Combinator has accelerated and invested in more than 60 startups since its creation in 2021. The accelerator plans to launch a €40 million investment fund in 2024, increasing its investment per startup from €50,000 to €500,000, responding to growing interest from entrepreneurs. With progressive growth, B-Combinator has become one of the most prominent accelerators in Spain.

10. RES4CITY

RES4CITY is an innovative project that seeks to strengthen the development of renewable energy and fuel technologies in cities, promoting sustainability and circularity through an advanced educational program. With the collaboration of 18 partners in the EU and Switzerland, the project focuses on training highly qualified human capital to support the green transition, especially in urban areas where resource consumption is high.

The pillars of RES4CITY include the creation of an innovation network, urban case studies, an educational framework with micro-credentials, collaboration between industry and academia, and outreach activities to raise awareness of the project and its tools, aiming to improve the implementation and replicability of green technologies in cities.

For entrepreneurs in Spain, exploring accelerator options is a crucial step toward success. The 10 accelerators highlighted in this article offer not only financial resources, but also an enriching ecosystem of mentoring, networking, and support in key areas such as digital marketing and business strategy.

11. Seedrocket

Seedrocket, founded in 2008 by Jesús Monleón and Vicente Arias, stands out as a pioneering accelerator in Spain, focused on technology startups. It is distinguished by its collaboration with Google and its comprehensive approach that includes funding, training, and specialized advice. Its approach has been crucial in the development and success of several notable startups, including Chicfy and Habitissimo.

In addition to providing financial resources, Seedrocket creates an environment of collaboration and learning for entrepreneurs, giving access to a network of experts and potential investors. Its collaborative workspace and support community are fundamental to startup development, encouraging the exchange of ideas and the creation of synergies essential for business success.

12. Cuatrecasas Acelera

Launched in 2016, it is the first European accelerator created by a law firm. By 2022, it had launched seven acceleration programs and four Fast Track programs, investing in five startups. This initiative is part of Cuatrecasas' Corporate Venturing strategy, a global firm with a strong presence in Spain, Portugal, and Latin America, specialized in business law.

In its eighth edition, Cuatrecasas Acelera concluded with a Demo Day in Barcelona, crowning Emily.AI as the winner among six startups. The four-month program provided legal and business support, focused on sectors such as Fintech and Healthtech. Cuatrecasas stands out for integrating innovation into its services, seeking efficiency and flexibility in advising its clients.

Thus, Cuatrecasas Acelera is established as a pillar in driving and developing technology and legaltech startups, combining expert legal advice with innovation.

New perspectives:

International startups on the global stage

The international startup landscape is marked by a series of influential accelerators that are reshaping the way emerging companies scale and achieve success. They offer a range of resources, from specialized mentorship and funding to exposure in key markets. Let's look at some of them that are making a significant difference worldwide:

1. Demium (International)

Demium stands out for its unique approach of building startups from scratch. It identifies entrepreneurial talent and creates teams around promising ideas, supporting them in developing innovative businesses. With a presence in several cities, Demium is a catalyst for those who have business skills but have not yet found the right idea or the right team.

2. Y Combinator (Latam and USA)

As one of the most prestigious accelerators, Y Combinator has helped many tech startups achieve success. Its focus is on intensive development during an acceleration program, culminating in a Demo Day where startups present to potential investors. Its impact extends across Latin America and the United States, with notable successes in both markets.

3. BBVA Momentum (Mexico)

It is an initiative focused on supporting social enterprises seeking to have a positive impact on their communities. BBVA Momentum offers not only funding, but also training, collaboration, and access to a global network of contacts, which is essential for startups looking to solve social and environmental problems.

4. Google for Startups (International)

With its global reach, Google for Startups provides emerging companies with access to Google's resources, connections, and best practices. From collaborative workspaces to mentoring programs and technical support, this accelerator drives startup growth and innovation worldwide.

5. AWS Startups (International)

AWS Startups, from Amazon, offers startups the support they need to build and scale their applications using the AWS cloud. It offers credits, technical support, and training, enabling startups to reduce costs and scale quickly.

6. Rocket Internet (Spain and Latin America)

Known for its model of replicating successful business models in new markets, Rocket Internet has created and scaled numerous startups across various sectors. Its presence in Spain and Latin America demonstrates its ability to adapt business strategies to different cultural and market contexts.

Each of these accelerators offers a unique and specialized approach, tailored to the needs of startups at different stages and in different sectors. Their impact goes beyond simple funding, providing a platform for sustainable growth and long-term success in global markets.

Conclusion: Growing through mentoring and national and international markets

The analysis of the role of accelerators in startup development reveals an undeniable truth: their influence is often a critical factor in the success of emerging companies. Accelerators not only inject vital capital into these companies in their early stages, but also provide an invaluable mentoring network, access to experts, and a platform to accelerate growth and innovation. Companies like Seedrocket in Spain and Y Combinator in the United States have proven to be catalysts not only for the growth of individual startups, but also for fostering a more vibrant and dynamic business ecosystem.

However, for entrepreneurs, the challenge does not end with choosing an accelerator. The accelerator environment is competitive, demanding, and fast-paced, requiring continuous adaptation and a commitment to constant evolution. Startups must enter these programs with clarity of purpose, a willingness to learn intensively, and an open mindset toward critical feedback and reinvention. The decision to join an accelerator should be a considered one, based on a careful analysis of how its specific offerings can align with and enhance the startup's needs and goals.

For entrepreneurs seeking acceleration, the invitation is twofold. First, research and deeply understand what each accelerator offers, ensuring that its programs and networks align with your specific needs. Second, prepare to make the most of this opportunity: be ready to scale quickly, embrace change, and face the challenges inherent in accelerated growth. Accelerators can be a formidable springboard for success, but the leap requires preparation, vision, and an unwavering will to succeed.

In Spain, the entrepreneurial spirit is also nurtured by initiatives such as Events for entrepreneurs and startups, which offer valuable resources and discussion panels for entrepreneurs in areas such as digital marketing and e-commerce. These events, together with government support for programs like SME digitalization, strengthen the country's entrepreneurial ecosystem. Thus, Spain establishes itself as fertile ground for business growth and innovation with multiple options for scaling up.