FAQ
Here you can find answers to the frequently asked questions
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Basic information
X Factor Accelerator from Veles is the first and only business accelerator outside of Skopje. It is a legal entity registered as a Limited Liability Company (LLC), founded by investors with extensive practical experience in creating, managing and supporting the development of successful start-up businesses. Its mission is to foster regional entrepreneurship by stirring up the startup scene and beyond the capital. The headquarters of the accelerator is in the center of the municipality of Veles, on ul. Boris Karpuzov No. 1, in office premises specially equipped and designed for the needs of its users.
The project is supported by the Fund for Innovation and Technology Development of Macedonia (FITD), in cooperation with the World Bank, through the Support Instrument – co-financed grants for the establishment, operation and investment of business and technology accelerators. The support consists of providing 75% of the funds for the implementation of the project, while the remaining 25% are funds of the founders.
There are several key differences between business incubators and business accelerators.
First and the biggest difference is that business accelerators, in addition to educational/mentoring support, provide funding for attractive startups, which is not the case with business incubators.
Second key difference is that by investing in the business, business accelerators acquire a minority stake in the firm, making them extremely interested in the business succeeding and achieving significant growth in a short time.
In fact, the motive of business accelerator founders to invest money, expertise, and time in targeted startups is to make a profit by exiting the business, when the value of their shares reaches a value large enough to meet predetermined profit goals.
In the business world, it's almost impossible to succeed on your own. For these reasons, the very emergence of accelerators and their increasing popularity as a source of funding for startups at the riskiest stage of their development is based precisely on the support of teams of entrepreneurs, not individuals.
What do we offer? What kind of support does X Factor Accelerator provide?
The amount of financial support that will be invested in startups will depend on the stage of development they are in.
For first group startups that are in starting phase is foreseen financing up to amount of approximately 30 000 euroswhich will be intended for: validation of the business idea, development of products and/or services, market testing and validation, creation of alternative business models for market entry and initial revenue generation.
For second group startups that are in more advanced phase is foreseen financing up to 70 000 euroswhich will be aimed at: validating the business model and scaling the business, strengthening marketing and sales activities, increasing the number of customers and growing sales revenue.
In addition to the planned investment budget, if the need arises for additional funding, it will be provided by other external investors. To this end, in parallel with all project activities, networking events will be organized for entrepreneurial teams with interested business angels, and in partnership with the municipalities of the region, efforts will be made to attract the attention of a large number of expatriates, who will have the chance, in one place, to find attractive business opportunities for investment.
Who can apply?
Support will be provided for two groups of startups that are in different phases of their development:
First group that are in starting phaseIn fact, they are not yet formed legal entities, but with the concept of the business idea developed to the level of an initial version of a business plan, whereby a team has been created to continue the process of its development and
Second group that are in more advanced phaseIn fact, we are talking about already established small and medium-sized enterprises that have been operating for 1-2 years and have developed and tested concepts/prototypes of products and/or services, have entered the market and already have or are about to sell to their first customers.
Essential for all startups that will be supported is to offer innovative solutions for actual problems and to have potential for rapid growthAt the same time, the geographical market where products and/or services will be sold is expected to be at least Macedonian (initially, in the first 1-2 years of business start-up), and in the short term (after 3-5 years), the business to have regional and/or global expansion.
No. Innovation does not necessarily mean a radical technological innovation that first appears in the global market, although it is the most desirable option for every investor. Innovation can be the creation of a new or significantly improved solution to an existing product, service, business process, etc., the discovery of an unmet need in the market, the creation of innovative business models to deliver value to customers and generate profits, new marketing methods, ways of creating value, etc.
There are no restrictions on how startups can be supported. However, priority will be given to those who offer digital innovative solutions in traditional Macedonian sectors, such as agriculture and manufacturing, but also in healthcare, education, financial services, energy, tourism, environmental protection, online commerce, gaming industry, etc.
No. Namely, although the mission of the X Factor Accelerator as the only business accelerator outside Skopje is to strengthen and move the regional entrepreneurial scene, startups from all cities and regions in the Republic of Macedonia, including the Skopje Planning Region, can apply for support.
No. There are no restrictions on the type of customers targeted by startups. Namely, they can also apply for support for startups whose targets are business customers (B2B – Business – to – Business), as well as those whose products and/or services are intended for sale to individual end users (B2C – Business – to – Consumer).
No. Self-employment projects aimed primarily at a local market in a particular municipality (e.g. restaurants, game rooms, boutiques, etc.) are not funded by this project. Therefore, there are other types of support, such as: the Self-Employment Project, which is implemented through the Employment Agency, etc.
Application and evaluation process
During the application process, you will need to fill out two application forms:
Short application formwhich we need at the very beginning to determine the stage of development in which the business idea is located, to make an initial assessment of its attractiveness, the capacity of the team, the key risk and success factors, the amount and purpose of the funds required, etc. and
Long application formwhich is in the form of a more advanced version of a business plan, the purpose of which is to help us make the final investment decision.
Application forms will be posted in an easily accessible place on the xfactor.mk pages
The steps in the application and evaluation process at the accelerator are as follows:
- Fill out and submit the short application form. Initial Business Evaluation – Idea by the Project Evaluation Committee,
- Begin the pre-accelerator phase, for those startups that will pass the first stage of evaluation. Their ability to develop a more advanced version of a business plan and continuous evaluation using a variety of techniques,
- Drafting and submitting a lengthy application form, in the form of a more advanced version of a business plan. A selection of 5 to 10 startups, of which, the Investment Approval Committee will make the final investment choice,
- Implementation of the accelerator program titled "Together We Grow" and making the final decision on investing in the most attractive startups.
The pre-accelerator phase has two objectives: firstto continue the process of evaluating entrepreneurial teams and their business ideas, and second, those who will remain in the "race", to empower them to produce a lengthy application form, which is in the form of a more advanced version of a business plan.
To achieve the first goal, various techniques can be used: direct interviews, preparation and delivery of oral or video presentation of business ideas, etc. To achieve the latter goal, individual mentoring sessions can be organized, as well as intensive training sessions for business planning of those teams that have the most potential.
How long this phase lasts will depend on the number of applicants, as well as the need for their support in the development of a more advanced version of the business plan. Teams will have about three to four weeks to prepare for it.
The pre-accelerator phase ends with the selection of 5-10 startups from which the final investment choice will be made.
The first step in the application process is very simple. Namely, all interested teams of entrepreneurs who feel they meet the above criteria only need to fill out the application short application form. Once the required details are filled in, the application should be emailed to info@xfactor.mk or through online form at the website.
You will receive a response to proceed within 15 days of the date of receipt of the short application form. Only entrepreneurial teams that receive a positive response qualify to enter the pre-accelerator phase.
Yes. This is possible if the business development idea is at a more advanced stage and the entrepreneurial teams feel ready to craft a more advanced version of the business plan themselves, or have already prepared it for other investors. However, a decision on this will be made after the initial meeting, but even then it will have to be adjusted according to our form.
Long application form should be filled out completely and sent to: info@xfactor.mk
The Investment Evaluation and Approval Committee will make the final decision on the selection of startups to invest in based on an assessment of:
- Market/Profit potential
- Degree of innovation
- The clarity of the established strategies to achieve, but above all to maintain a competitive advantage
- Capacity of the team
- The willingness to co-finance the project, through its own participation,
- The reality of financial/budget projections and
- Business model sustainability
What do we get for the support we provide?
The way of monitoring and control of the operations by the accelerator will be regulated in a separate Agreement to be signed before the start of project activities. In each case, the firm's entrepreneurial/management teams will manage the day-to-day/operational operations, while the investors from the accelerator will participate primarily in the process of making strategically important decisions for the growth and development of the business.
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