AWS Impact Accelerator leverages Amazon muscle and technology expertise

There are many impact accelerators. But AWS Impact Accelerator, powered by Amazon Web Services (AWS) and launched earlier this year, has a particular competitive advantage: a combination of Amazon's clout and technological expertise. “We know a lot, but what we really know is technology,” says Denise Quashie, Global Startup Marketing Program Manager and former tech startup founder herself.

The accelerator program launched in April with a three-year, $30 million commitment for early-stage startups led by black, female, Latino, and LGBTQIA+ founders. Each cohort, made up of 25 early-stage startups, lasts eight weeks; companies should already have their product built and ready for prime time. Startups receive up to $125,000 in cash and $100,000 in credits for AWS services.

According to Howard Wright, vice president and global head of startups at AWS, which is Amazon's cloud platform unit, the current drop in venture capital funding makes the need for such accelerators especially urgent. “Historically underrepresented founders are disproportionately penalized,” says Howard.

The first cohort, the AWS Impact Accelerator for Black Founders, started in April. This was followed by the Women's Cohort, which launched in October and recently concluded. The Latino cohort will begin early next year.

In a related development, last October Amazon announced Amazon Catalytic Capital, aiming to invest $150 million in venture capital funds, accelerators, incubators and venture capital studios that fund entrepreneurs from underrepresented backgrounds.

Separate tracks

AWS' technology expertise and focus is reflected in distinct paths for CEOs and CTOs. In fact, one of the requirements for entering the program is that startups not only have a technical lead or CTO, but also one who can participate in the accelerator. This person is then paired with an AWS technology specialist who can help with a startup's back-end architecture, minimum viable product (MVP), and other technology elements; most mentors are former founders or VCs, who have experience growing businesses, or former CTOs. Meetings with mentors are held weekly.

For their part, CEOs work with someone from the AWS Startup Business Development team. For most former founders, as well as investors, they focus on product market fit and go-to-market strategies - plans to launch a product or expand into a new market - and fundraising. Accelerator startups schedule 15-30 minute meetings with their mentors through the program platform. They also work with non-AWS Amazon employees who work in areas like voice technology or Whole Foods. The program primarily relies on partners, such as Hubspot, to discuss various topics, allowing AWS to focus on technical issues such as cloud and infrastructure adoption.

A mix of physical and virtual presence

The first week of the program takes place in person at AWS headquarters in Seattle, during which CEOs and CTOs define the areas they need to focus on. Most of the rest is happening virtually, with weekly meetings. The final week is in-person for pitch prep ending with a pitch in front of investors, which most founders probably wouldn't be able to meet on their own.

Quashie and his colleagues launched the accelerator program with the assumption that the biggest challenges facing underrepresented founders were go-to-market strategies, fundraising, and technology. According to Quashie, since its launch, it has found this thesis to be correct.