FAQ
Frequently Asked Questions
What help can Chinaccelerator offer me?
We'll help you launch your company and increase its chances of success. Specifically:
*By providing initial funding for you to develop your business plan and build enough of a demo, prototype or beta product, in order to demonstrate to investors at the end of our program.
*By helping you construct your company - we'll take responsibility for the administrative and legal aspects of company formation so that you can focus on developing your business.
*By connecting you with potential investors and strategic partners, as well as bloggers and other press.
*By introducing you to world-class mentors who have expertise in starting companies, developing innovative consumer products, and creatively marketing those products to millions of consumers. These will be some of the most valuable connections you'll make as an entrepreneur.
We expect Chinaccelerator companies to seek some additional funding at the close of the initial program. We'll organize that process and guide you through it. Some companies may seek substantial funding while others may require a smaller amount to be successful. It’s also possible for a company to self-fund. We’ll help you identify your problems, understand your options, and think through any difficult decisions you may face.
How is Chinaccelerator different from a venture capital firm or an angel investor?
We're interested in businesses at their earliest stage then they're just a great idea and are looking to get off the ground. Venture capital firms typically look for companies who are further along. Some angels will invest at early stages, but more often they are individuals without the kind of structure and support that Chinaccelerator offers. Although we have made our own angel investments, and have worked extensively with venture and other investment firms at later stages of development, we realize the unmet needs of entrepreneurs at their earliest stages. We strive to meet those needs, then guide you in the direction for further funding from other.
What types of businesses are you looking for?
This is a fantastic time to be starting technology-based, internet, mobile and software companies. Typically, we fund web-based or other software companies, but we're also funded companies that don’t quite fit that mold. We expect a significant number of participants to be internet companies, focused on gaming, social media challenges, and social communications. We're also open to digital media or software-as-a-service companies that address a real SMB, enterprise or government IT challenge. Even if your specialty is in mobile platforms, applications and solutions- we're extremely interested and open to hearing your ideas. Basically, we're looking for disruptive technology solutions that don't require a great deal of capital. As far as web and mobile development goes, we're only just beginning. Development costs are decreasing and we're looking for people who have the ideas and willpower to take these technologies to the next level.
Absolutely. The Chinaccelerator team has experience working with companies at all stages of development. We can help you determine your value proposition, understand testing and measuring results, scale user bases, develop business models and refine your products. In addition, we offer educational seminars that are general in nature. The one-on-one mentoring sessions that we host are customized to each company, so you can ask for advice for any aspect of your business. This program will allow you to take only what you need to grow.
My company is already up and running. Is Chinaccelerator still for me?
Absolutely. The Chinaccelerator companies included a good mix of brand new companies and ones that already had some traction. Although our original goal was to help only companies who are in the first "inning" of development, we have found that companies in the second need an equal amount of help and support.
How do you choose which companies are accepted into Chinaccelerator?
We will choose great founders who are proposing ideas to solve real problems or create a meaningful change to our current technological state. For us, it’s about the team and the market opportunity. The best ways to strengthen your application are: round out your team with business, technical, and other necessary skills, make progress on your prototype or product and reference it in the application, show us that you are passionate and that you’ve really thought about your business. Getting into Chinaccelerator is hard. We will only accept 5 to 10 of the best startups.
How can I ensure my company is selected into the Chinaccelerator program?
There is no way to guarantee your company will be among one of the chosen for the Chinaccelerator program, although earlier applications will have an advantage as there is more time to review them. Make sure you read and understand the requirements of the application process before applying. Once we have reviewed your application, we may contact you for more information before our final selections are made.
How do I apply for Chinaccelerator?
The application for Chinaccelerator is available on this website. Completing our online application will sign your company up to be considered for our four month Chinaccelerator program, but does not guarantee acceptance.
When is the application deadline?
The deadline to apply to Chinaccelerator is May 31, 2011. It is advantageous to apply early to provide the Chinaccelerator team sufficient time to review and consider your application, but to be early does not give your application higher priority or guarantee your company acceptance.
What do I need to apply to Chinaccelerator?
You need to complete the application and have your core team identified. Demo code and wireframes are helpful if you have them, but aren't required. At such an early stage in your development process, we’re not looking for long business plans but a core concept, ideally with some technological thinking already behind it. We expect most of our successful applicants will be two- or three-person teams, but we’ll consider individuals and larger teams too.
When will I know whether or not my company was accepted into the Chinaccelerator program?
In order to have sufficient time to review applications, we won't be notifying teams of their selection until June 1st, 2011. Before this time, we may contact you for further information about your application and about your company in general. This may include online interviews and phone conversations, but could include other forms of communication as well. If you don't hear from us by June 10th, 2011 your team has not been selected for the 2011 program, but we encourage you to move forward with your ideas and seek other means of support.
Will you sign a Non-Disclosure Agreement (NDA)?
No. We simply see too many ideas and too many companies to sign an NDA. The more open you are about your idea the better we will be able to evaluate it. This being said, send only as much information as you are comfortable disclosing; we won't force anything out of you. If you are selected for Chinaccelerator, you will have access to experts who will counsel you about how best to protect your intellectual property (among other things).
We'll consider funding you, but your chances are much higher if you find yourself a technical co-founder. Additionally, this should be something you do for yourself rather than relying on us to find that perfect fit.
Do I need to have prior start-up experience?
No experience required. We just ask that you're passionate about your idea and willing to work hard at making it a reality.
Are there any restrictions on who can apply?
No. As long as you can be on-site legally in Dalian, China during the four months of the Chinaccelerator in 2011, you are eligible to participate. We'll help you with the rest.
How much do you invest in each company, and what equity interest do you receive in exchange?
Our model is to invest up to CNY 40,000 per company. For our investment and other contributions, Chinaccelerator will receive a standard 4 to 8% equity stake in each company. In addition, Chinaccelerator will receive a warrant that provides Chinaccelerator with an option to invest up to a pre-determined amount at the conclusion of the program at a pre-determined valuation. The exact amount and valuation of Chinaccelerator’s subsequent optional investment will vary depending on the specific opportunity, the experience of the team and the stage of the business and the product.
CNY 40,000 doesn't sound like a lot of money, what else do I get?
We’ve proven that this is enough money to survive for the summer and crank out a substantial prototype for demonstration, while spending a bit of marketing money. Once you've made it that far, you'll present your idea to investors for a chance at additional funding. During the program, you'll also get a nice place to work, a computer, legal services, product UX advice, marketing help and more. Finally, the connections and advice that you’ll receive when you start your company with Chinaccelerator will prove immeasurable.
How many companies will receive funding at the conclusion of the program?
Investments will be happening based on a number of factors including market opportunity of the product and performance of the founders during the business accelerator program. Chinaccelerator does not guarantee funding. But previous program has shown a very good success rate for funding. Remember that it's only the beginning.
What's expected of me during the Chinaccelerator program?
We can't tell you what to do. This is your company, afterall. The only obligation is to be in Dalian and participate to all the sessions offered by the program. We will ask is that you take advantage of what we're offering you though. You're expected to work hard, and come out on the other side with something better than when you first got here. What does this mean? At the end of the program, you'll present your ideas to investors, partners and possibly prospective customers. You're the one that needs to justify your idea. This means you should have a compelling presentation to show them in hopes of acquiring additional funding. Often, that'll mean having a demo and a business plan, but could also only require one of the above. We want for you to show that you deserved to be chosen as a part of this program, and that your idea has grown since you arrived.
What can I expect from Chinaccelerator?
We'll help you get going by providing initial funding while you develop your business. While you work, you'll hit roadblocks, and we can work through them together. We'll guide you through refining your vision and developing your business plan. We'll even offer you feedback on your product and connect you with successful mentors who can offer advice to help you grow. Once we've given you the tools you need to be successful, we'll host a presentation day for you to show off what you've learned to angels, venture firms, strategic partners, and tons of press including bloggers and journalists.
When does Chinaccelerator start, and how long does it run for?
Chinaccelerator is expected to start in June and run until early October, 2011.
Do I need to be in Dalian during the program?
Yes. Your entire team needs to be in Dalian during the duration of the program. It's the best way for us to help you during this critical period of growth.
Where do I live during the Chinaccelerator program?
Where you live during the Chinaccelerator program is up to you, but once you are accepted, we can help you find a place to call home for the duration of the program. There are many short term housing options in Dalian, as well as extended stay hotels.
What happens at the end of Chinaccelerator, am I on my own?
No. Chinaccelerator’s help doesn’t stop at the end of the initial program. We will continue to help as you move forward with your startup if you want to. There’s a lot that has to come together to turn a great idea into a great company—resources, talent, marketing, sales, partnerships, etc. We’ll be there to help as you take those important next steps. Remember, we succeed only if you succeed.
The Chinaccelerator program does not currently have the funds to invest outside of the business accelerator program. Occasionally, individual advisors of our company are looking to make direct seed or angel investments. Please simply contact us with inquiries.
How much access will we get to the mentors?
Different mentors will be coming in and out of the Chinaccelerator space at periodic times. We'll be working on setting up office hours so everyone can get some one on one time, and we hope to have workshops with each mentor as they are available. There is also always the opportunity to email or contact mentors directly via our message boards.