Startup decelerators offer detox on paradise islands to rediscover purpose

Westfjords is the destination for tourists who want to explore remote Iceland. To reach the region with its gray landscapes and a horizon cut out by mountains, it is necessary to leave the capital Reykjavik and drive for at least six hours. At certain times of the year, car travel, which is more popular than air travel, can be complicated by the snow.

“The path itself is a journey,” says entrepreneur Birta Bjargardóttir. “But you drive through an absolutely breathtaking landscape. The waterfalls, the sea and the rivers, lots of birds”, he delights. Since 2017, entrepreneurs from all over the world have made the journey to reach the region, where they participate in a startup slowdown program offered annually by the Blue Bank innovation center, located in the city of Thingeyri, almost 400 km from the capital.

In such a competitive scenario for startups, speed matters: pitches, 3-5 minute “elevator speeches” are trained that should delight investors. It is necessary to have a disruptive idea, to want to turn the sector in which it operates upside down. On the other hand, organizations are born in the world that offer deceleration to entrepreneurs.

The nonprofit organization Blue Bank’s program was almost an accelerator. “This is such a beautiful, peaceful place — so peaceful,” Bjargardóttir, the organization’s manager, chuckles, “that we decided to do something a little different.”

The similarities to an accelerator are many. During the week they are in Iceland, the selected participants —there were 10 in 2021— meet other entrepreneurs, receive mentoring and access networks. The idea is not to slow down the business, which may continue to grow at the same pace, but the company founders.

“At the end of a throttle, you’ll have your business plan, your website launched or whatever. In a throttle, all of that can happen, but it’s more about giving yourself physical, mental, and intellectual space. things happen, without pressure,” says Bjargardóttir. In the package, mentoring and accommodation are free.

Another island, Menorca, is also the scene of a slowdown for entrepreneurs from around the world. Surrounded by the clear waters of the Mediterranean Sea, the Spanish territory is home to Marcos Martin Larrañaga, founder and CEO of Decelera.

“We believe that just going fast all the time, like a chicken without a head, greatly increases the likelihood that the company will die,” says Larrañaga. “Slowing down is not going backwards. It is necessary to continue growing as a business, but also to grow at the human level.”

The entrepreneur, who has already touched companies linked to sustainability and renewable energy, went to live on the island to build his family and noticed how his head would settle down when he arrived there. “My mind becomes clearer, more strategic and creative. And this is a very important part of the business,” he says.

There, the 20 teams selected from the hundreds that apply go through three phases in ten days: breath, focus and growth (breathing, focus and growth). “Everyone comes with a lot of ideas, very fast, accelerated, and then we tell them, ‘first you have to brake,'” says Larrañaga. The landscape helps. “When they arrive in Menorca, half the work is done,” he says.

In the focus stage, it is necessary to try to solve the big problems of their companies through classes and conversations with more experienced entrepreneurs. And to grow, in the last phase, the participants have contact with investors.

Throughout the process, the program has fun activities: entrepreneurs go for walks, collect plastic on the beaches and compete in paellas, a typical Spanish dish.

As with the Blue Bank program, many startups leave with other purposes and completely transform the platform or business model, according to Larrañaga.

Both programs understand that the initiative is important in trying to preserve the founders’ mental health. “The startup ecosystem is not toxic, but growing for the sake of growth is,” says Larrañaga.

Since 2019, Brazil has also had a decelerator: the OBoard, by the entrepreneur Ricardo Voltan. It does not consider short-term decelerations models. “It’s one thing to immerse you in an island and release you into the market. Another is to accompany you for a longer period,” he says.

Without resorting to paradise islands, Voltan’s company offers customer support for a year. The idea is that entrepreneurs come out more prepared to talk to investors, hire and make decisions — including the decision to refuse investments for which they are not prepared.

“The accelerator cuts the brake cable and goes down the slope. We show the brake, say that sometimes we’ll need to put our foot on”, he defines. This does not reduce the company’s growth curve. “I say we change the car tire at a safe speed.”

The first phase of the follow-up is called by him the “sanity test”, with a different pitch, 60 minutes, and a company analysis for 40 hours. From there comes a report from the startup and the manager.

What changes little in relation to European decelerators is the focus on the entrepreneur. “Those who invest in startups invest in the entrepreneur, not in the business. The business is a consequence. Until it becomes a Nubank, a large operation, you are investing in a human being.”

For Voltan, the service is especially important today, a time when Brazil sees unprecedented investments in innovation. “The market is in disproportionate liquidity. We have a lot of international money and startups that are not well prepared for these capital contributions. As it comes, this money will go away in an instant,” he says.