A Story and a Guide: How we got accepted into 500 Startups

This wasn’t going to be the next topic I planned on writing about, but I’ve been getting a lot of inbound requests on tips for applying and getting accepted into 500 Startups, one of the top Accelerators in the World. So since I’m writing to make room in my head for other things I need to focus on, I wanted to share our story and a short list of tips to help founders. This guide works for any accelerator, and it should also be noted that while this worked for us, everyone has a different story of how they were accepted in the accelerator they applied for.

Let me start by saying that applying for 500 Startups was not in the cards originally, it was a series of events that led to us deciding it was the best move for us to make as company operating out of Atlantic Canada, which isn’t exactly on everyone’s radar. I first met Dave McClure co-founder of 500 Startups at the Startup Festival in Montreal over a year ago. I had seen him speak before and followed his now infamous “Startup Viagra: How to Pitch a VC” pitch deck when creating ours. I always found his candor and no-BS approach to growing companies refreshing — it was about getting shit done and that resonated with me.

A few months later I embarked on my first trip to San Francisco. One of the goals I had set out was to learn more about 500 to see if it was in fact the right move for us. The first person I met on my trip was Hansmeet Sethi, who was an EIR (Entrepreneur-in-Residence) at 500 and now COO atNeighborly, and based on what we had achieved at that point, Hansmeet suggested we could be a good fit for the program. Days later, I connected with Amanda Parker who graciously gave me a tour of 500 and a desk to work on. I spent 3 days there and made the most of my time connecting with as many people on the 500 team. I also interviewed other companies who had just finished their batch and all had glowing reviews of how 500 had impacted their businesses, more importantly ALL of them said they would do it again in a heartbeat. That’s all I needed to reach out to my team and convince them it was the best move for us — 500 Startups was actually the only accelerator we applied for in the Valley.

Being a seasoned entrepreneur with now greying hair I knew that just following the application guideline would not work for us. We are in HRTech and as much as there are great opportunities in this space, it’s also one with a lot of players and my concern was in regards to the challenge related to standing out. We had traction, raised money, and a great time, but we were also up against the rest of the World.

To summarize the steps I took, it looks a little like this:

1. I went to San Francisco prior to the start of their next batch and met as many member of the 500 team as I could, so at the very least, they’d know I’m not as asshole.
2. I went on the 500.co website and found mentors and EIRs that I had connections to (and that would know enough about what we’re up to). I reached out and asked them to email the 500 team.
3. This, this I don’t recommend doing… we made it to the interview… and when I picked a time slot on the app they were using, it added into my calendar at 6 pm (AST) when it was in fact at 2 PM (AST). While I still blame the scheduling application , I should have double-checked. The positive outcome from this, is that it’s made me more vigilant in all of my scheduling that happens in other timezones.
4. Unfortunately 500 had exhausted all of their available slots and were not able to reschedule — I found that out at 4 am on a Thursday night. I’m still not sure why I heard the email come in at 4 am, but at 4:01 I was writing emails that I was planning on sending out at 7 am to everyone who had put in a good word for us. I was embarrassed, but more so, I was disappointed that others had put their reputation on the line for me.
5. Within the series of emails, test messages, and calls. Most of the responses were along the lines of “Prove them wrong”, “This is not the end”, “You fucked up…”. I almost waived the white flag, but I was so convinced that it was absolutely the right move for us that I couldn’t let it go. Out of my conversations, John Philip Green asked me what our 3 main highlights/achievements were, so I sent it to him and within a few minutes he reached out to Dave to let him know that they should reconsider.
6. … and reconsider they did. I’m still grateful to this day, Marvin Liao who leading the batch took a flyer on us. We became a last minute addition to the batch, but I didn’t care, I was just ecstatic that we made it in and was determined to make the most of out of it. Like I make the most out of any great opportunity that comes along.

That was our story, but like I said everyone has a different story. Now that you know, here are a few tips to help you in your application process:

• RESEARCH: Not all accelerators are created equal, find out what stage of companies they like to focus on and their area of expertise, then decide if it’s the right fit for you. Many people apply too early or to accelerators who are not the best strategic fit for them.
• STAND OUT: Go out of your way to make sure you connect with people involved in the accelerator. Just like when it comes to your company’s growth and chance for success; if you only play by the rules you will lose.
• HAVE TRACTION: Nowadays, revenue is the only real metric for traction, most others fall into what is called vanity metrics. If you don’t have revenue, you better have a great story of why your company will be successful, so yeah…
• HAVE A GREAT STORY: You’re competing with thousands of other applicants, why should it be you? Tell a great story around your business and, but more importantly around you, the founders and why you have what it takes.
• BE CONFIDENT, BUT DON’T BE ARROGANT: It doesn’t matter how much success you’ve had in the past or with your current startup. Accelerators want to work with people who are coachable, if you’re not going to take advice, then why be there?
• FOCUS ON YOUR WEAKNESSES: Not everyone has the same needs or are at the same point in the life cycle of a business. It’s important for accelerators to know what areas they can help you with. Is it your pitch? revenue growth? raising funds? etc. If your weaknesses line up with their areas of expertise, it’ll increase the likelihood of wanting to work with you.

If you are one of the lucky few to get in, then work your ass off, but have fun. It’s a once-in-lifetime opportunity to be surrounded by the brightest and most driven people in the World — take the time to connect with them.

If you don’t get in, all does that not end on that day. Find out the reasons why, and work on improving those areas of your business. If you come back with real progress, it actually makes for a better story and says a lot about your character.

Hope this helped.