Find commercial feasibility for your startup in our PreXLR programme

Do you find it difficult to find the first clients for your startup? Is it proving difficult to persuade investors? Are you having a hard time getting into an acceleration program? Or do you want to have a solid base for your enterprise right from the startup phase? Then we have the solution to your problems with our PreXLR (pre-accelerator) program.

The European Startup Ecosystem

The European startup community is mainly focused on building solutions, creating products and pushing these onto the market (the “push” philosophy). There are various parties for this within the startup ecosystem, examples of such are incubators and accelerators, or – in a very late stage – the growth programs that help the startup grow to corporate (grown-up) size.

The incubator is a breeding ground (a startup will often set up business here in the early stages) a place where entrepreneurs meet peers. Like-minded individuals that experience the same difficulties. By sparring about this with each other in a familiar environment, they can tackle and avoid the most prevalent pitfalls a startup faces. Oftentimes, mentors are involved that explain current issues for the beginning entrepreneur. The incubator is relevant for a startup, but does not offer a structured process in which to develop and grow.

Accelerators are good at up-scaling the startup, by bringing it into contact with relevant networks and relations. This is helpful when the startup has found its effective product-market combination (validated business model). The end goal of an acceleration program is pitching for investors, in the hopes of completing a financing round and growing further.

The European Startup Ecosystem and the PreXLR (precelerator)

The European Startup Ecosystem and the PreXLR (precelerator)

 

The Investor

Remarkable are the talks with investors in which they indicate possible interest, on the condition that “it” works. First, they need to see that there’s a working revenue model: your commercial validity needs to be demonstrated. Usually, the entrepreneur interprets the word “it” as: “I need to have a product that (technically) works”. This breakdown in communication means that startups (and not just tech-startups) think that there needs to be a working product for the investor to be brought in.

That’s why the startups set out to find financing and loans with which to develop prototypes in an early stage of the process. Acceleration programs help with this, by connecting the startups to mentors that help contribute ideas about the product. The mentors often help brainstorm about what they think is the perfect solution or feature. Then, when the prototype finally works, the startup goes back to the investor, who will then ask if there are paying customers yet. Unfortunately, the answer is often ‘no’, because the focus has been on product development and not on validating assumptions about the business model.

It doesn’t have any added value to accept these startups into an acceleration program. These startups haven’t found a working product-market fit yet and don’t know which problem for which target audience they are supposed to be solving. Finding this relevant problem is crucial in developing a product that clients are in need for, and to come to a working product-market combination. Finding this product-market combination and creating a sustainable and scalable business model is nearly impossible when the right combination of problem and solution haven’t been found yet.

The PreXLR (Precelerator)

Within a hundred days, the PreXLR helps you to find your first clients and proving the commercial feasibility of your startup, without developing a product. It helps develop solutions that are the answer to current recognisable problems, that are affecting your clients daily. This way, your client will be prepared to acquire your product or service; the basis of the sustainable and scalable business model of your startup.

We pose that startups will only find this relevant issue area by experimenting often and fast. Don’t make decisions based on gut-feeling, but validate assumptions for your prospective clients based on personally collected data. We don’t let mentors project their views onto your process, but make sure that the “market” provides you with actual feedback.

During our precelerator program, you will validate assumptions based on data acquired from your potential end users. Through this structured process, you will encounter your first clients, you will obtain insight into their problems and find the suitable sustainable and scalable solution, including a revenue model, that you should offer them.

Every two days you will share your progress with your peers, during short pitching moments that are recorded, so that you will build a personal file of your startup development. You will be provided with feedback on your search process by us and our mentors, and will quickly get back out there again to validate your assumptions. Making your first turnover is the key to success within our program, we would rather see you continue bootstrapped, without investments! Additionally, we make sure that you are investor-ready, should the need for financing arise, you will pitch before our allied seed fund.

For whom is the PreXLR (Precelerator) suitable?

The PreXLR (Precelerator) is developed for startups that:

  • want to find their first paying customers and had difficulties doing so;
  • that want to create traction and extreme user growth;
  • who need an investment or had difficulties finding an investment;
  • cannot get into an acceleration program or came out and didn’t have any success;
  • wish to create a solid revenue model and limit risks.

Send us your pitchdeck