About 40% of applications for Accel Atoms came from non-metro cities

Accel’s pre-seed startup focused program Atoms has received close to 40 per cent of the applications from non-metro cities. Launched in September 2021, Accel Atoms typically inducts a batch of 10-15 startups for a five-month program.

Out of these five months, 3-4 months will be spent on a classroom-like course on business fundamentals, followed by the demo day at the end of 5 months.  Accel plans to do two batches in a year and has already completed its first batch. Through this program, startups receive $250,000 in non-dilutive capital, mentorship from established business leaders, along with access to the global Accel community. 

Accel India has recently raised $650 million in commitments for its seventh fund to invest in new opportunities across India and Southeast Asia. The firm’s portfolio includes companies like Flipkart, Freshworks, Vedantu, Swiggy, and Cult.fit. BusinessLine spoke to Prayank Swaroop, Partner at Accel India about the progress of the Atoms program and the plans ahead.

What was the objective behind launching Accel Atoms? 

I think there were three different objectives. One was to experiment with new sectors. Since it’s a very early stage, we have the flexibility to experiment with some sectors where we might be very puzzling in our minds. Why should we do this sector right now? Second, it allows us to invest in idea stage companies. It is interesting to note that around 22 per cent of the Atoms applicants are at the idea stage.

The third is that mature founders usually don’t want to dilute their equity early on. So this becomes a sweet offering for them because Accel is not even taking any equity in this program. Close to 45 per cent of the program applicants have at least one co-founder with prior experience in building a startup.

Out of the first batch of Atoms program, how many start-ups raised capital after Demo day?

Of the 14 companies in the first batch, 12 companies participated in the Demo day. Out of which, roughly nine companies have raised capital from $1 million to $10 million.

What is the demographic of the startups applying to Atoms program?

Entrepreneurs from across the length and breadth of India have shown interest in the program, with large numbers situated in non-metro cities. Applications came in from 35 cities in India. Of which almost 40 per cent of the applications came from non-metro cities, showing that India is moving up the innovation and entrepreneurship value chain as a country.

Do the investment decisions in Atoms program happen faster than Accel’s regular portfolio?

Unfortunately, our average time to invest within these companies is still over a month barring a few. For us, the amount of effort we put into analysing the company’s idea is still the same, and we don’t want to invest a small amount early on and then not follow-on in the next round.  There will be some companies where our analysis will not be the right. But I think the broader objective is to find a company with whom we can partner to IPO. 

Do you plan to open Atoms program to global startups?

Currently, this is India and Southeast Asia  specific program. But we are thinking of taking it global also. However, it is too early to say that; maybe after a year, we will have a solid answer.

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