Startup Accelerator by AICPA and CPA.com

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During the AICPA Engage conference in June of this year, I was introduced to Mark Brooks by Judie McCarthy of Client Hub. Mark is the Associate Director of Innovation and Strategic Partnerships for the Association of International Certified Professional Accountants (unified voice of AICPA and CIMA). In 2017, the association and CPA.com launched Startup Accelerator to help the profession deal with the changes that are coming its way.

Mr. Brooks, the association and CPA.com believe, “The profession will look radically different moving forward. Historically, startups and entrepreneurs have had a significant role in driving innovation and transforming sectors. The purpose of the startup accelerator is to help these companies help the profession transform and become more future-ready.”

The Startup Accelerator is accomplishing this by identifying early stage or seed stage solutions in accounting and financial technology, dubbed AccounTech. These companies are invited to pitch their solution to a panel. If selected, they are invited to join the cohort of winners. As a member of the Cohort, they receive $25,000 in capital as a promissory note, a presence in the AICPA Engage Exhibit Hall, access to a panel of professionals for mentoring and coaching, and a training curriculum about the market and profession. The training can cover subjects like pain points for CFO's, pricing models, future of the profession, etc.

Ultimately the Startup Accelerator’s goal is to drive innovation for the profession. The process allows the AICPA to learn more about technologies that are available or in the pipeline and to identify the better products and better technology that they can then assist bringing into the market to make the profession function more efficiently and effectively.

The Startup Accelerator debuted in 2018 with the 4 members of the cohort being North Capitol, Regroup Tax, TrueUp and Pluma. The 2019 cohort was comprised of Client Hub, DryRun and Gapify.

Judie McCarthy (JM) of Client Hub and Blaine Bertsch (BB) of DryRun to see how “winning” has impacted their businesses:

What was your initial reaction when you heard that your company had been selected?

JM - We were thrilled, being selected for the program was a clear validation that the challenges the Client Hub solves for are real within the accounting profession and that there is a real need for our platform.

BB - We were absolutely thrilled to hear that Dryrun had been selected for the accelerator. To have such an incredible organization helping us learn and grow is such an honour and true asset to a startup that battles every day to make an impact on the profession.

What has been the most beneficial aspect of being selected?

JM - As a member of the cohort we have been given access to some of the top thought leaders within the accounting profession as well as other leaders in business, marketing and finance. Access to the resources has provided us with education, guidance and input that have allowed us to grow and excel.

BB - The greatest benefit truly comes down to the people that contributed their time and expertise to lend a hand. Having advisors that are at the top of their profession and willing to offer advice is invaluable. The relationships and insights will be felt within our business for years to come. Although we’ve been impacted on so many levels, additional benefits for our business came via a much better understanding of the profession and our place within it. The experiences within the accelerator helped us refine and pinpoint our true market. We learned how we can help CPAs within their role as advisor and be a true game changer within their firms and within their clients' businesses.

What was the time commitment for you on the front end in preparing for the "Pitch" you had to make to the panel?

JM - Preparing for the 5 minute pitch round took less than an hour. We opened our pitch with a few slides that defined our understanding of the communication challenges that accountants face when working with clients. This was followed by a product demo to highlight the main features and describe ease of use and how they solve for the challenges.

BB - The pitch is not as daunting as it sounds. It took little time to develop a pitch that suited the circumstances. As a startup founder, pitches are just a part of life and any opportunity to tell people about or mission is time well spent.

Would you like to share any other comments?

JM - We also received $25k in the form of a convertible promissory note. This funding has helped us to fuel growth. In addition, having access to the other founders within the cohort is great, we can share ideas, get input and celebrate our wins together. BB We are so grateful to the AICPA and CPA.com for the opportunity and I would strongly encourage any startups seeking to make an impact within the profession to apply for the accelerator.

According to Mr. Brooks, the biggest challenges in starting the program stemmed, surprisingly, from exposure. Not having a lot of exposure in the early stages' entrepreneurial ecosystem meant not having an ability to easily identify potential startups to bring in to the cohort. Everyone in the profession knows the AICPA, but not every startup in and around the accounting startup space knows the AICPA, so a lot of leg work had to be done in order to connect with angel investors, venture capitalists, and others who are more directly involved in the tech start-up world. The hope is that as the program grows and the existing cohort members from 2018 and 2019 grow, the awareness, engagement and involvement from the broader startup ecosystem will also grow.

Applications are now being accepted for consideration in the 2020 cohort. Details about the program, past participants, and the current applications are here. Deadline for applications is November 30, 2019.