How to Save Yourself from Cheating Accelerators in Bengaluru: A Founder's Survival Guide

Bengaluru, India's Silicon Valley, has become a breeding ground for both legitimate accelerators and fraudulent ones. As the startup ecosystem grows, so does the number of scammers looking to exploit ambitious founders. This guide, based on real founder experiences, will help you identify red flags and protect your startup from accelerator scams.

The Growing Problem

The startup accelerator landscape in Bengaluru has seen explosive growth, but not all programs are created equal. While legitimate accelerators like Y Combinator, Techstars, and Sequoia Capital Surge provide real value, a growing number of fraudulent programs are preying on vulnerable founders desperate for funding and mentorship.

These scams can cost you more than just money—they waste precious time, damage your reputation, and can even put you and your family at risk, as some founders have experienced threats and abuse from scammer accelerators.

Red Flags: How to Identify Fraudulent Accelerators

1. Vague or Non-Existent Mandates

Red Flag: The accelerator provides unclear or constantly changing terms. They may give verbal clarifications that contradict written documents, or refuse to put important terms in writing.

What to Do: - Insist on written documentation for all terms - Review all legal documents with a lawyer before signing - If they refuse to provide written terms, walk away immediately - Be wary of "verbal clarifications" that differ from written agreements

2. Fake Promises and Name-Dropping

Red Flag: The accelerator claims to have connections with major VCs, saying things like "all VCs are my mother's friend" or making unrealistic promises about funding and introductions.

What to Do: - Verify their claims independently - Check if they have actual portfolio companies you can speak with - Research their team's background on LinkedIn and other platforms - Ask for specific examples of successful exits or funding rounds they've facilitated - Be skeptical of grandiose claims without proof

3. Unprofessional Behavior and Communication

Red Flag: - Unofficial WhatsApp or Telegram groups instead of formal communication channels - Delayed responses or ghosting after initial interest - Unprofessional language or behavior - Threats or abusive behavior when questioned

What to Do: - Legitimate accelerators use professional communication channels - If they create "unofficial" groups, it's a major red flag - Document all communications - If you experience threats or abuse, report it to authorities immediately

4. Suspicious MCA (Ministry of Corporate Affairs) Practices

Red Flag: The accelerator's company registration or MCA filings show inconsistencies, or they're registered as a different type of entity than claimed.

What to Do: - Verify their MCA registration independently - Check their company status on the MCA website - Look for any legal issues or complaints against the company - Verify the directors and their backgrounds

5. Pressure Tactics and Rushed Decisions

Red Flag: They pressure you to make quick decisions, claim limited spots, or create artificial urgency.

What to Do: - Legitimate accelerators give you time to review terms - Take time to do due diligence—never rush - Consult with mentors, lawyers, and other founders - If they're legitimate, they'll understand the need for due diligence

6. Lack of Transparency About Equity and Terms

Red Flag: Unclear equity terms, hidden fees, or refusal to explain the investment structure clearly.

What to Do: - Get everything in writing - Understand exactly what equity you're giving up - Know all fees and costs upfront - Compare terms with other accelerators (YC, Techstars publish their terms)

7. Fake Journalists and Paid Promotions

Red Flag: The accelerator has extensive media coverage, but it's all from questionable sources or paid placements. Real journalists don't charge for coverage.

What to Do: - Research the journalists and publications covering them - Check if the coverage seems authentic or promotional - Look for independent third-party validation - Be wary of accelerators that seem to have "bought" all their press

Due Diligence Checklist

Before joining any accelerator, complete this checklist:

Company Verification - [ ] Verify MCA registration and company status - [ ] Check company directors' backgrounds - [ ] Look for legal issues or complaints - [ ] Verify physical office address (visit if possible)

Track Record Verification - [ ] Speak with actual portfolio companies (not just references they provide) - [ ] Verify funding claims independently - [ ] Check if portfolio companies have actually raised funding - [ ] Research their exits and success stories

Team Verification - [ ] Verify team members' backgrounds on LinkedIn - [ ] Check their previous work experience - [ ] Look for any red flags in their history - [ ] Verify their educational credentials

Terms Verification - [ ] Get all terms in writing - [ ] Review with a lawyer - [ ] Compare with industry standards - [ ] Understand equity dilution and all fees

Network Verification - [ ] Verify claims about VC connections - [ ] Check if mentors are real and accessible - [ ] Verify corporate partnerships - [ ] Research their actual network reach

What Legitimate Accelerators Look Like

For comparison, here's what you should expect from legitimate accelerators:

Clear Terms - Transparent equity terms (typically 5-7% for $100K-$150K) - All terms clearly documented - Standard SAFE or equity agreements - No hidden fees

Real Track Record - Actual portfolio companies you can verify - Real funding rounds and exits - Transparent success metrics - Public information about their program

Professional Communication - Formal communication channels - Professional team and processes - Clear program structure - Transparent selection criteria

Real Value - Actual mentorship from experienced entrepreneurs - Real investor connections - Proven program structure - Supportive community

What to Do If You've Been Scammed

If you've already fallen victim to an accelerator scam:

1. Document Everything - Save all communications (emails, messages, calls) - Document all promises made vs. what was delivered - Keep records of all payments and transactions - Take screenshots of all interactions

2. Seek Legal Advice - Consult with a startup lawyer - Understand your legal options - Consider filing a complaint with relevant authorities - Explore options for recovering losses

3. Report the Scam - File complaints with relevant authorities - Report to startup community forums - Share your experience (anonymously if needed) to warn others - Consider legal action if appropriate

4. Protect Yourself - If you receive threats, report to police immediately - Don't engage with abusive behavior - Seek support from legitimate startup communities - Focus on building your startup despite the setback

5. Learn and Move Forward - Use the experience as a learning opportunity - Apply to legitimate accelerators - Build your startup independently - Don't let one bad experience stop you

How to Choose the Right Accelerator

Research Thoroughly - Start with well-known, established accelerators - Research their portfolio and success stories - Talk to alumni before applying - Understand their specific focus areas

Ask the Right Questions - What is your investment structure? - What percentage of companies raise follow-on funding? - Can I speak with portfolio companies? - What mentorship do you provide? - What is your selection criteria?

Verify Everything - Don't take claims at face value - Verify independently - Get everything in writing - Consult with advisors

Trust Your Instincts - If something feels off, it probably is - Don't ignore red flags - Take your time with decisions - Better to miss an opportunity than join a scam

Legitimate Accelerators to Consider

If you're looking for legitimate accelerator programs, consider these:

Global Accelerators - Y Combinator: The gold standard, accepts Indian startups - Techstars: Multiple programs, global network - 500 Startups: Strong track record with Indian startups - Sequoia Capital Surge: Specifically for Indian and SEA startups

Indian Accelerators - Axilor Ventures: Established accelerator in Bengaluru - Venture Catalysts: Early-stage accelerator - TLabs: Technology-focused accelerator - GSF Accelerator: Growth-stage focus

How to Apply - Research each program thoroughly - Understand their specific requirements - Prepare a strong application - Network with alumni - Be patient and persistent

The Bottom Line

The startup journey is challenging enough without falling victim to accelerator scams. The key to protecting yourself is:

Do Your Due Diligence: Never skip verification steps
Get Everything in Writing: Verbal promises mean nothing
Trust But Verify: Verify all claims independently
Take Your Time: Don't rush into decisions
Consult Advisors: Get legal and mentor advice
Trust Your Instincts: If it feels wrong, it probably is

Remember, legitimate accelerators want to help you succeed. They'll be transparent, professional, and patient with your due diligence process. If an accelerator pressures you, makes unrealistic promises, or refuses to provide documentation, walk away.

The Bengaluru startup ecosystem is full of opportunities, but it's also full of predators. By following this guide and doing thorough due diligence, you can protect yourself and your startup from fraudulent accelerators while finding the right program to accelerate your growth.

At Janteera Ventures, we believe in building a transparent and supportive ecosystem. We encourage all founders to do their due diligence, ask tough questions, and never compromise on transparency and professionalism. Your startup deserves better than a scam—take the time to find the right accelerator that will truly help you succeed.