Swedish Online Marketing veteran opens private accelerator for e-commerce companies
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”
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