What an accelerator gives you
Accelerators such as Y Combinator and Techstars run time-boxed programmes for groups of startups, usually called batches or cohorts. The details differ by programme, but the shape is broadly similar:
- Investment. The accelerator invests cash in the company in exchange for equity or a right to future equity. The size and form of the investment is set out in each programme's published terms.
- A focused few months. Regular meetings with partners, office hours and a strong push to grow quickly during the programme.
- A network. Alumni, mentors and other founders who can make introductions and answer questions.
- Demo day and investor access. A chance to present to a large number of investors at once, which can make raising the next round faster.
- A signal. Top accelerators are selective, and getting in tells investors and early customers something about the team.
For an Indian startup, a leading US accelerator can also be an introduction to how US founders and investors think, which is valuable in its own right.
What an accelerator usually does not do
An accelerator gives you advice, capital and access. It does not, as a rule, do your North American work for you. Someone on your team still has to:
- Set up and run a North American entity, bank account and accounting.
- Find, contact and close customers in Canada or the US, during their business hours.
- Be present for meetings, pilots and follow-ups long after demo day.
- Decide positioning and pricing for a market they may not know well.
Founders often handle this by relocating for the programme, sometimes permanently. That can work very well. It can also mean the founder who was building the product is now spending most of their time on sales, visas and logistics, while the team in India waits.
What a North America co-founder gives you
A North America co-founder is a different model: a person or team based in North America who joins the company as a co-founder and owns the market there. At Uttarmark, that means:
- No cash in either direction. We do not invest money and you do not pay fees. We earn equity, negotiated up front, with vesting.
- The North American operation. A Toronto-based Canadian corporation, banking, accounting and the paperwork, with the costs covered by us rather than your runway.
- Business development. Outreach, demos, pilots and first paying customers in Canada and the US, done in the time zone.
- Introductions. To Canadian angel groups, incubators and accelerators, with preparation for those conversations.
- Go-to-market. Positioning, pricing and working out who actually signs the cheque.
- The long run. Not a programme with an end date, but a co-founder relationship.
The trade-off is equity without cash. An accelerator gives you money and leaves the work to you. A co-founder does the work and brings no money.
Side by side
| Accelerator | North America co-founder | |
|---|---|---|
| Main thing you get | Capital, a programme, a network and demo day | Someone on the ground doing the North American work |
| Money | Invests cash for equity | No cash; earns equity through work |
| Who sells in North America | Your founders | The co-founder, with you |
| Time horizon | A programme of a few months, then alumni network | Ongoing, with vesting |
| Relocation | Often expected or encouraged, depending on the programme | Not required; the team can stay in India |
| Selection | Competitive application process | Mutual fit; a small number of companies at a time |
How to decide
Ask yourself which of these is the real constraint on your company right now:
- "We need capital to keep building." An accelerator, angel round or seed fund addresses this. A co-founder model does not.
- "We need a network and a signal to raise." A top accelerator is hard to beat here.
- "We have a product but no one is selling it in North America." This is an execution gap, and it is what a North America co-founder is for.
- "We don't want a founder to relocate yet." A co-founder on the ground lets the team keep building in India.
Be honest about equity too. Any co-founder or investor dilutes you. The question is whether what they bring is worth more than what they take, and whether their incentives line up with yours.
Can you do both?
Yes. The two are not mutually exclusive. A startup can work with a North America co-founder and still apply to Y Combinator or any other accelerator, and a North American presence with early customers can strengthen an application. If you are accepted, the co-founder keeps the market moving while the founders focus on the programme. Check each programme's terms and discuss the cap table with your lawyer so everyone understands the equity picture.
Questions to ask anyone who wants equity
- What exactly will you do, and what will you not do?
- Who, specifically, will do the work?
- What happens if it is not working after a year? Is there vesting?
- How many other companies are you working with at once?
- Can I speak to founders you have worked with?
These questions apply equally to accelerators, advisers and co-founders. A good partner will be glad you asked.
Have a product but no one selling it in North America?
Uttarmark joins Indian pre-seed tech startups as their North America co-founder. No cheques, no fees: we take equity and do the work from Toronto, and you can still apply to any accelerator you like.