Sting is a Stockholm-based accelerator that helps regional companies reach their full potential. It has been operating for more than 20 years and has been named one of the best accelerators in the world. It offers a variety of programs, from acceleration to incubation, inviting to its flagship Sting program companies with a launched product and proven market traction. Earlier-stage startups can also benefit from the offer, taking part in the Test Drive program, which offers comprehensive support in transforming their ideas into reality.
Accelerator Strategy Overview
Geography: Sweden, based in Stockholm
Preferred industries: Climatetech and healthtech and within these we love deeptech. Examples of sectors we work with are AI/blockchain, new biomaterials, robotics, spacetech, energy production technology, energy storing technology, energy reduction technology, medical technology, digital health, biotechnology, security technology and industrial IoT.
Company stage: Pre-seed.
Product stage: Pre-product. Usually beta version or prototype.
Product type: Software and hardware.
Revenues: Pre-revenue.
Program Details
Duration: 4 months
Participation fee: warrant corresponding to 2% at the start but no dilution protection for Sting.
Equity Investment: €50K convertible loan.
Grant: 0
No. of batches per year (+ months when you collect applications): 2
No. of startups in a cohort: 7-9
Q&A with Pär Hedberg, Founder & CEO of Sting
What are the 5 most important things you look for in a startup applying to your acceleration program?
The most important things we take into consideration when looking into all startup applicants are as follows:
- Are they addressing a large, important problem/need?
- Have they come up with an innovative solution for this problem/need, that can be scaled with favourable economics?
- Is it a team with critical competencies in-house and a balanced ownership structure, giving the right incentives to the important persons?
- Are the team’s motivational factors aligned so they can handle 10 years of ups and downs?
- Is there a real ambition to build a large company focusing on sales?
The positive answers to all these questions are a good indication of whether a startup is a good fit for us.
What startups should take into account before applying to your acceleration program?
Startups should ask themselves all the 5 above-mentioned questions and consider whether they fit these criteria before applying. Our program is also run in Stockholm, so if they are headquartered in a different country, they need to relocate to Stockholm.
Can you share some of the red flags that can disqualify a startup from joining your accelerator?
The main red flags include:
- Not addressing an important and large problem/need;
- Not a balanced team structure;
- Not willing to locate to Stockholm during the program.
What are the most valuable skills that selected startups can develop thanks to your program?
- Understanding the importance of selling and personal sales skill;
- The network to potential customers;
- Getting ready for a real seed investment and closing that with angels and early-stage VCs;
- Understanding of how to scale the team;
- A Sting community with 200+ startup peers to draw knowledge and connections.
How does your accelerator support portfolio companies during and after the program?
Our program is not a traditional Accelerator program with a small Accelerator team and a large number of mentors. Instead, we focus on having 10 very experienced in-house industry-specific coaches who have built on companies that last 10-20 years. Each coach spend usually 4 hours per week and company. On top of that:
- 1 person supporting only with team & talent;
- 1 person supporting with financing strategy & planning;
- 2 people supporting PR & media.
Moreover, 12 external experts that the companies can use 30 hours from that Sting is paying for. And 20+ industry mentors for specific industry questions.
What are the best-performing companies in your portfolio?
The best-performing companies in our portfolio include Selly, Allears, Care to translate, Airmee, Fairlo, Cling, Lylli, Karma, and Ugglo.
What key lessons have you learned from projects that didn’t work out the way you expected?
- The team is the key;
- Make sure you address a large and growing problem with a willingness to pay for the problem to be solved;
- Technology is usually not a problem;
- Wrong timing.
Why, in your opinion, accelerators are becoming more popular nowadays?
They provide systematic best practices that make it possible for startups to avoid common mistakes. A very cost-effective way to access know-how, networks and visibility.
What are the hottest markets you currently look at as an accelerator and where do you see the biggest hype?
We are now exploring space technology and more and more deep tech startups, as we have lots of know-how in that sector.
Do you have any predictions about the key trends that will shape the European accelerator scene in the near future?
We need to find pre-seed deep tech investors in Europe to keep up with the growth of these sectors in the US and Asia!
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