We just received our term sheet from gener8tor! gener8tor is ranked as one of the few gold-tier startup accelerators in the US by the Seed Accelerator Ranking.
For each class, gener8tor only accepts 5 companies out of hundreds that apply to their program. They run only 2 classes a year. For the Spring 2017 cohort, Errund is one of 5 companies chosen from 691 companies. That’s a 0.7% acceptance rate.
We are proud to announce that we will be joining one of the top startup accelerator programs in the US from February 15, 2017 to May 11, 2017. We will be in Madison, WI. Here’re 3 reasons why we are joining:
Errund has been bootstrapped for a year. We have used the time to our operations more robust. But we are at a stage where we are ready for more accelerated growth.
gener8tor will invest up to $140,000 in us. This will allow us to develop more features for our customers and increase our growth rate.
2. gener8tor’s concierge approach
A very hands-on approach to mentoring their portfolio companies is the main reason why gener8tor is a top startup accelerator in the country. One huge reason they can do that is that they only have 5 companies to work with for each class.
We have heard of horror stories of how various accelerators bring little value to the table to justify the 6-7% of equity that they take from their startups. This is so because those accelerators often accept close to a hundred startups per class, hoping to hit a few startups that will eventually become unicorns.
3. Midwest focus
Our focus is on the Midwest market and gener8tor is based in the same region. Joining them will therefore allow us to capitalize on their regional connections and expertise.
Geographical focus is one of the key yet often overlooked strategies to gain high market penetration, market share and customer loyalty. By catering to the needs of their geographical audience, smaller companies can edge out their global competitors. Case in point: Didi causing Uber billions of losses in China and eventually Uber’s exit.