Acceleration and Scaling Program (2nd Edition)

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The Acceleration and Scaling Program is an initiative in the province of Córdoba, designed to propel technology-based startups and support their efforts to scale globally.
What are the main aims and objectives?

Startups stand out for their innate high growth potential, often projecting significantly elevated revenue growth rates compared to industry or competition averages. They progress through business development stages at an accelerated pace, fueled by a remarkable degree of innovation in products, processes, services, or customer engagement.

Entrepreneurs reaching a stage with technical and commercial validation seek tools for commercial expansion and accessing new capital. Scaling organizations and accelerators play a crucial role, utilizing their extensive mentor networks to expedite startup maturation, enabling progression to new stages. These entities also provide invaluable international connections and resources.

In this context, the Cordoba Innovation and Entrepreneurship Agency has launched the second edition of the Acceleration and Scaling Program. The program aims to enhance the acceleration and scaling processes of startups in intermediate and advanced stages, enabling them to achieve global scalability and secure new rounds of capital through support from scaling institutions. Furthermore, the program has specific objectives, including:

  1. Promoting the establishment and support of entrepreneurial capital institutions that actively contribute to the acceleration of startups.
  2. Cultivating partnerships with reputable organizations engaged in the acceleration and scaling processes for startups, guiding them towards consolidation and business expansion.
  3. Strengthening connections between startups and international entrepreneurial capital organizations.
  4. Expanding international linkages to facilitate access to new markets, thereby fostering the global scaling of startups.
How does the program work?

The program's primary beneficiaries were scaling institutions, defined as legal entities, funds, or trusts within the country, providing acceleration and scaling services to startups. These institutions, whether private, public, or mixed, were categorized based on the following criteria:

  • Initials: Institutions with a history of less than 3 years since their creation or, at the program launch, had fewer than 5 investments in startups.
  • Advanced: Institutions with a history of 3 years or more since their creation and, at the program's launch, had 5 or more investments in startups.

However, the true focal point of the program rested upon startups manifesting significant potential for scaling and acceleration.

In terms of benefits, the program granted financial support to beneficiaries covering up to 50% of the institutions' operational expenses and associated costs during the acceleration and scaling process. The maximum time frame for executing this support was 12 months from the date of beneficiaries' selection.

Institutions falling under the ‘initials’ category could access a maximum of ARS$5 million (approximately USD 34,800), while those under the ‘advanced’ category were eligible for up to ARS$10 million (approximately USD 69,650).

The financial disbursements occurred in stages under an advance payment model, contingent upon the successful completion of the following activities:

  1. Conducting an open call for startups that had already achieved technical and commercial validation of their products and/or services, preferably having secured at least one private sector investment and currently in the process of national or international scaling.
  2. Selecting a minimum of 6 startups per institution to participate in their acceleration and scaling process.
  3. Hosting an investor day at the conclusion of the acceleration and scaling process, providing startups with an opportunity to showcase their projects to influential figures in the national and international venture capital industry.
Executing activities supporting and contributing to the growth of the entrepreneurial ecosystem in the province of Cordoba during the program's validity period. Institutions in the ‘initial’ category were required to undertake at least one such activity, while those in the ‘advanced’ category had to engage in a minimum of two activities.
What is the overall cost?
The beneficiary institutions received ARS$ 54,8 million (approximately USD 381,400), representing a 100% execution of the budget requested by the institutions in the applications.
How was it implemented?

The program can be divided into three general stages: call for applications and selection process, acceleration and scaling process, and investor day. Moreover, the beneficiary institutions were required to carry out activities supporting the entrepreneurial ecosystem in the province of Cordoba with the aim of fostering entrepreneurial culture.

In total, 8 calls for startups were conducted between November 2022 and April 2023, each lasting an average of 26 days. The institutions used various dissemination tools such as social media, networking events, and engagement with strategic allies.

During the selection process for startups participating in the acceleration and scaling processes, the different institutions considered criteria covering various aspects. These included the existence of a Minimum Viable Product (MVP), the quality and track record of the entrepreneurial team, a technologically based value proposition, business model, scalability, social impact, among others.

The program designed by the Agency showcased significant flexibility by granting each institution the freedom to determine the service delivery method and the content to be addressed within the acceleration process. As a result, the structure of each program was distinct and unique.

Ultimately, the program stipulated that the conclusion of each institution's acceleration process would culminate in an investor day. During these events, institutions leveraged their networks to organize a space where mentors, ecosystem leaders, representatives from venture capital institutions, and potential investors participated. On these occasions, entrepreneurs were expected to present their value proposition through a pitch, with the goal of initiating an investment round or establishing connections that could benefit the growth of their businesses.
What impact has been measured?

Eight institutions from different provinces of the country participated in the program. Throughout the calls, a total of 343 applications were received, and after the selection process, 76 startups were selected in the various acceleration and scaling processes provided by the institutions.

In general terms, the program durations varied between 2 and 5 months, with an average extension of 3.6 months. They included weekly or bi-weekly group meetings, as well as individualized and personalized mentoring sessions for each startup. On average, each institution conducted 15 sessions with entrepreneurs. During the processes facilitated by the institutions, startups not only had the opportunity to connect with over 35 national scaling funds and institutions but also established connections with more than 16 international corporations or funds.

Moreover, the institutions provided startups with a mentor network, with an average of 11 individuals. These mentors shared their expertise and profound knowledge in specific areas, offering crucial insights to tackle challenges and capitalize on key opportunities.

Finally, 87% of the selected startups concluded the acceleration process with a pitching session in front of national and international investors.

Regarding investor days, 160 angel investors and representatives from various investment funds participated, with 91% being of national origin and 9% international (Chile, Peru, Mexico, England, Colombia, United States, Spain, and Brazil).

On another hand, throughout the Program, between December 2022 and July 2023, the eight beneficiary institutions organized a total of 18 activities aimed at strengthening the entrepreneurial ecosystem. These activities were grouped into three main categories: 9 open training activities targeting entrepreneurs in the ecosystem, 5 networking events fostering interaction between mentors, entrepreneurs, investors, funds, and institutions, and 4 presentation or launch activities for the acceleration program to promote it and increase its visibility in the entrepreneurial environment.

What lessons can be learned?

In general, the overall assessment of the services provided by the institutions was positive, particularly highlighting the highly skilled mentor network, the effectiveness of the selection process, and the impact of individual mentorships. Many entrepreneurs emphasized that the program provided them with essential tools to streamline their business structures, formulate effective marketing and fundraising strategies, redefine their pitches, redesign their business models, and implement substantial changes to their products.

It's noteworthy that nearly 30% of entrepreneurs experienced explicit interest, marked by the initiation of negotiations with investors for their startups. However, a corresponding 30% of startups noted a lack of access to the service facilitating connections with foreign investors (both institutional and angel investors). Furthermore, even among those who did receive this service, the satisfaction rating was lower compared to other services.

Looking ahead, some entrepreneurs perceived challenges for the institutions, including the need to enhance the internationalization module, establish stronger ties with investors and venture capital firms for more personalized feedback, and explore opportunities for ongoing monitoring of startups that participated in the program, fostering continued engagement.

CURATED BY

Pablo Ignacio Peralta

Director
Agile Policy
Argentina