Startup Laos: 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!

The startup ecosystem in the Lao People’s Democratic Republic, while nascent and full of untapped potential, faces a fundamental challenge: the blind application of an “imported” accelerator model. Much like its neighbors, Laos has seen the rise of programs that mimic the Silicon Valley playbook—fixed-term, cohort-based, and heavily centered on a “Demo Day.” 

Organizations like the Lao Youth Union in partnership with international bodies such as the Korea International Cooperation Agency (KOICA) and others, have been instrumental in establishing incubation centers and running startup competitions. While these initiatives are well-intentioned and offer a crucial first step for many young entrepreneurs, they often prioritize the aesthetics of a startup—the pitch deck, the polished presentation—over the core substance of a business: a paying customer base. 

This approach creates a fragile dependency on external capital, which is particularly problematic in a market with a limited local venture capital landscape. The focus on a dramatic fundraising event encourages founders to be professional fundraisers rather than profitable business builders. 

The rush to a demo day creates a false sense of urgency, where success is measured by the attention of investors, not by the company’s ability to generate revenue and sustain itself. The true value of a company is not its valuation but its ability to survive and grow on its own merits. 

This is where our philosophy at 1Mby1M fundamentally diverges. We view a startup’s journey as a long-term marathon focused on the one metric that genuinely matters: revenue.

A Deep Dive into Local Accelerators

To understand the unique opportunity for a new model in Laos, we must first examine the existing landscape. The Lao startup scene is still in its early stages, with a few key players and a high degree of reliance on international partnerships. 

For instance, the collaboration between the Lao Youth Union and the KOICA program offers a structured incubation process focused on IT and youth entrepreneurship. These initiatives often feature competitions and a “Startup Incubation Center,” providing early-stage companies with mentorship and resources. 

Similarly, programs supported by international development organizations, like the former Mekong Innovative Startup Tourism (MIST) Accelerator, have played a role in specific sectors like tourism. 

Another notable player is XMTechnovator, which provides business acceleration programs tailored to local enterprises. 

What these models have in common is their structured, time-limited nature. They bring together cohorts for a set period, provide them with training, and then they “graduate.” The mentorship provided during this period is valuable, but it is finite. Once the program is over, founders are often left to navigate the next phase of their journey without a continuous support system. This model is effective for a select few who can leverage the connections and momentum of the program, but it is not scalable and does not address the day-to-day, long-term challenges of building a sustainable business. They are providing a fast-track to a potential funding event, but not necessarily a long-term pathway to self-sufficiency.

This is where 1Mby1M comes in and changes the game.

The 1Mby1M Philosophy as a Counter-Model

The 1Mby1M approach is a radical counter-model that is perfectly suited for the realities of the Lao market. Our program is not a fixed-term, cohort-based model with an endpoint. Instead, we offer a continuous, long-term business development program. Our core mission is to help a million entrepreneurs reach a million dollars in annual revenue, and every facet of our program is designed to serve this purpose. 

Unlike many local initiatives that are often grant-based or tied to specific agendas, 1Mby1M is completely unconflicted. We do not take equity. We are not beholden to investors or corporate sponsors. Our sole metric for success is the success of the entrepreneur. 

This philosophical foundation is critical, as it allows us to provide advice that is purely in the entrepreneur’s best interest—advice that often runs contrary to what a traditional, venture-backed accelerator might suggest. 

Our “Bootstrap First” philosophy is a prime example. We teach entrepreneurs to validate their business idea by getting customers to pay for their product or service from day one. This is the most effective form of market research and the only true validation of product-market fit. 

This stands in stark contrast to the common practice in local programs, where founders are often encouraged to build a product for months without a single paying customer, all in the name of a big reveal on a demo day. Our model forces discipline and a focus on the fundamentals that are essential for survival, particularly in a market where capital is scarce and difficult to obtain. We are a resource for those who are building a real business, not just playing the “startup game.”

Part 2

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 Laos