Magnus Bråth, regarded not without controversiality as the top within the Swedish online marketing and SEO sphere, announced earlier that he will start an accelerator focusing on online businesses and e-commerce.
The ambition with the accelerator is to put his money where his mouth is. As Magnus said it himself:
“In my point of view an organisation that is good at something but has no skin in the game is not trustworthy. As an accelerator we need to deliver results in a very concrete way”.
Magnus, who has a past at Pineberry and a very successful SEO consultant, started himself recently the online marketing company Brath. Brath has seen great growth since its start. He based the company in Örnsköldsvik, a town in northern Sweden – where the accelerator will be located.
The terms of the accelerator
The accelerator is similar to other accelerators, but diverges a quite a bit also. Instead of cash, the “investment” is 120 000 – 250 000 SEK in SEO and online marketing. The accelerator will also take 12% in company equity. This is different to other accelerators such as Startup Bootcamp (which offers € 15 000 for living expenses and €450 000 in services for 8% of the equity) or STING Fast Forward (which offers € 27 000 funding in the form of convertible notes as well as a 2% of the equity).
However, being more target at online marketing makes it a very interesting model for certain startups, especially e-commerce.
Also, being a completely private initiative is both a choice and a statement:
“It’s my belief that accelerators and incubators should be privately owned. You don’t go to the hair dresser for business advice so why on earth would you go to your local politicians?”
A different and targeted accelerator
“There is no other accelerator like this in Sweden right now, as far as I can tell. Almost everything you find out there is government funded and focused on “innovation”. I honestly dislike the strong innovation focus in the government accelerators and incubators. Most successful companies didn’t invent, Mariott didn’t invent the hotel room and H&M didn’t invent clothes. I think that this is a flaw in general in Swedish entrepreneurship – that many entrepreneurs are looking for that one product that will change everything rather than looking for sales and a business model.”
“There is no other accelerator like this in Sweden right now, as far as I can tell”
That the funding is tied to online marketing makes this very interesting for certain types of startups. Startups in the Brath Accelerator will probably have revenue from a very early stage, and not spend the time in the accelerator developing the product as many other startups need to do. This makes the accelerator relevant for business with a clear online revenue stream.
“Northern Sweden is in many ways ideal for e-commerce. Not only do we buy more online per person up here, rents are lower and staff stays longer with your company.”
The Brath Accelerator will accept 2 batches each year, with 5 startups in each. Both teams as well as single entrepreneurs will be accepted. Candidates should preferably have some revenue already and an online presence in the form of an e-commerce store or website that sells services.
“Northern Sweden is in many ways ideal for e-commerce. Not only do we buy more online per person up here, rents are lower and staff stays longer with your company”