In the Lithuanian startup ecosystem, more and more new business acceleration programs are launched with the aim to help startups to mature in the short term (3-6 months) and prepare for the investment phase. The first and one of the most famous foreign startup accelerators, such as Y Combinator, Techstars, and The Alchemist Accelerator, have sparked a boom of similar programs around the world. According to the International Business Innovation Association, there are more than 7000 business accelerators. After analysing accelerator programs and globally recognized business activation models, Kaunas Science and Technology Park has developed and launched a new business accelerator program Evolut 4.0.
Business acceleration programs help early stage startups develop entrepreneurship skills using hands-on training, mentoring, and personalized consulting. With the help of professionals from various fields, the most promising startups within a few months become fast-growing companies ready to attract investments. More than 90 percent of business development programs or accelerators are non-profit and oriented into the development of the country's startup economy, while the rest are private.
Motivated teams are selected
While developing a business acceleration program Evolut 4.0, Kaunas Science and Technology Park innovation experts paid a lot of attention towards creating connections and providing contacts with venture capital funds and business mentors. Only motivated and innovation-oriented teams were selected for the program. “Practice has shown that the success of a startup is determined not only by the unique technology but also by the motivation of team members to learn. Even a simple idea, tailored to meet customer expectations and refine the value of the product, can create a well-functioning business, ”says Paulius Nezabitauskas, coordinator of the Evolut 4.0 acceleration program at Kaunas Science and Technology Park.
Every week program participants experienced hands-on training on business topics varying from product value proposition to financial plan for new market entry. Promising teams have been advised by business consultants involved in the InoSpurtas project, working with both major Lithuanian businesses and university researchers. “We have invited highly regarded experts in the innovation ecosystem to become the lecturers at the program. The lecturers helped to create the lowest value proposition of the product developed by each team, using NABC, Business Model Canvas, Design thinking and other methodologies that are widely used in the world”, - P. Nezabitauskas notes.
Helps to refine a business solution
Combining worldwide valued methodologies, the consistent business acceleration program has been driven by the tendency to focus on developing the product for the customer. "This was also highlighted by the visit of a former SRI International CEO a year ago, well known as the originator of HDTV, Siri and other technologies; he has said that creating value requires time and patience with teams. It is important to feel the customer's "pain" because it defines a problem that solves a new value. So we put the methods together so that the lecturers, along with the mentored teams, go the whole way of creating the minimum viable product (MVP) offer and get the maximum benefit,” says P. Nezabitauskas. Last year, the International Association of Science Parks and Areas of Innovation (IASP) rated the business acceleration program Evolut 4.0 as the best business solution.
At the end of the training cycle, the teams participating in the acceleration program identified their customer profile, the market in which they seek to operate and their main competitors. “The goal of the whole program is to ask the right questions, find the appropriate direction, and give an impulse to the action. Teams do not need to analyse documents, they should go and meet consumers, asking what they need, even if the product being developed is for the B2B market. Finding out what is not proper can change the product development model and find a product-market fit. Evolut 4.0 program helps to clear this up, ” notes Dmitry Sosunov from Venture Capital.
At the closing event of the seminars, teams presented their products to venture capital investors and experienced business developers: Accelerators, Cluster Associations, Startup Communities in Lithuania. “Investors are looking for active teams where people dedicate at least 12-14 hours of work for their startup and move away from their core businesses. When you dedicate yourself to a startup, it is possible to create a product within a few months without having to wait for a year to test it on the market, ”says Marius Pareščius, the Executive Director of Lithuanian ICT Cluster.
Professional insights are required
Startups eager to improve their businesses must apply for the program and the most promising ideas and teams are selected. 7 top-performing teams of 9 selected startups presented their products at a meeting with investors. According to one of the finalists, representatives of the vertical farming solution, the professional insights are needed by young business in order to choose the right market and prevent time and money wastage.
Usually, startups who have recently started their own business do not have any business development professionals in their teams before seeking investor help and other funding. Therefore, access to advice from business development experts who have conducted program training, as well as consultants of the InoSpurtas project, is a great opportunity.