Startup Singapore: The Accelerator Conundrum

The Accelerator Conundrum is a multipart series that challenges the prevailing wisdom of the tech startup ecosystem that entrepreneurs should Blitzscale out of the gate. Written by Sramana Mitra, the Founder and CEO of One Million by One Million (1Mby1M), the world’s first global virtual accelerator, it emphatically argues that a better strategy is to Bootstrap First, Raise Money Later, focus on customers, revenues and profits. 1Mby1M’s mission is to help a Million entrepreneurs reach a million dollars in annual revenue and beyond. Sramana’s Digital Mind AI Mentor virtually mentors entrepreneurs around the world in 57 languages. Try it out!

Singapore, the so-called “Little Red Dot,” has long cultivated a reputation as a startup hub. With its stable government, robust infrastructure, and access to capital, it has successfully attracted global talent and a dense network of incubators and accelerators. This has created a vibrant, but ultimately flawed, ecosystem. 

The fundamental problem lies in a misguided philosophy that has been imported from Silicon Valley and adopted without critical thought: the “fundraising first” mentality. This approach pushes entrepreneurs to prioritize the spectacle of a polished pitch deck, the buzz of a public demo day, and the validation of a venture capital round. Success is measured not by paying customers or revenue, but by the valuation, the amount of capital raised, and the resulting media attention. 

This creates a dangerous feedback loop where founders are rewarded for their fundraising prowess, not for their ability to build a sustainable business. The ecosystem becomes a house of cards, built on hype rather than substance, and the moment the flow of venture capital tightens, the entire structure becomes fragile. It’s a game of musical chairs where a few lucky ones get funded, while the vast majority are left with nothing but an empty bank account and a product nobody is willing to pay for.

This is precisely the conundrum that my 1Mby1M philosophy addresses. We are a direct, philosophical challenge to this prevailing model. Our belief is simple and brutal: the true game of entrepreneurship is not about fundraising—it’s about building a profitable, self-sustaining company that can stand on its own two feet. We focus on a single, powerful metric: revenue. 

We believe that every business, regardless of its ambition, must first prove that it can generate income from its customers. This is the only true validation of a business idea, and it’s a far more powerful metric than any valuation. Our program is designed to guide entrepreneurs on this long, arduous, but ultimately rewarding path. We teach them how to get paying customers, build a solid business model, and grow organically before they ever consider seeking external capital. This approach doesn’t just build companies; it builds resilient, disciplined, and self-sufficient entrepreneurs who are ready for the long marathon of building a real business.

The Local Accelerator Landscape

To understand why a new model is necessary, you have to dissect the existing landscape in Singapore. The ecosystem is crowded with a diverse mix of government-backed and private initiatives, each with its own brand of a fixed-term, cohort-based model. Prominent players like 500 Global, with its strong brand and network, and local VCs such as Monk’s Hill Ventures and Cocoon Capital, have all contributed to building a sophisticated environment. 

The pros of these accelerators are clear: they provide a structured program, curated mentorship from experienced professionals, and a strong network for a limited period. The cohort model fosters a sense of community, and the demo day provides a stage for founders to showcase their work and attract investor attention. For a select few, this can be a powerful launchpad, providing the necessary momentum to raise a seed or Series A round.

However, the cons are far more significant and often overlooked. The primary flaw is that these programs are finite. The mentorship is confined to a few weeks or months, and once the program ends, the continuous support system is gone. This leaves founders to navigate the next, often more complex, phase of their journey without a safety net. The pressure to “perform” for the demo day can also lead to misaligned incentives. Founders may focus on building a flashy product for a pitch rather than a functional one for customers. The advice they receive can also be biased, as mentors and VCs are often looking for the next “unicorn,” pushing founders towards a high-risk, high-reward model that may not be suitable for their business or their personal ambitions. This creates an environment where failure is not a learning experience, but a catastrophic event. 

Furthermore, the gatekeeping nature of these programs means that only a select few are granted access, leaving thousands of aspiring entrepreneurs on the sidelines, hungry for guidance. The problem isn’t a lack of resources in Singapore; it’s the scarcity of an ongoing, strategic framework that guides founders through the inevitable valleys and plateaus of a startup journey. The “demo day” model, while exciting, creates a dangerous illusion of success that is not sustainable.

Remaining Parts in Series

Startup Singapore: The 1Mby1M Philosophy and Bootstrap First

One Million by One Million (1Mby1M) is the first global virtual accelerator in the world, founded in 2010 by Silicon Valley serial Entrepreneur Sramana Mitra. It offers a fully online entrepreneurship incubation, acceleration and education resource for solo entrepreneurs and bootstrapped founders working on tech and tech-enabled services ventures. 1Mby1M does not charge equity, offers an AI Mentor in 57 languages, and offers a distinct advantage over other accelerators including Y Combinator.

This segment is a part in the series : Startup Singapore