The SmartUp methodology critiques the traditional accelerator model using a medical school analogy introduced by Yonatan Stern. Learning the theory of business through a foundation course is compared to completing medical school. While this provides knowledge of concepts, language, and mechanics, it does not prepare someone to operate independently. Just as a new medical graduate cannot perform surgery without supervision, an entrepreneur requires long-term, hands-on practice to build a company.
The SmartUp Residency serves as this long-term accelerator. Mentors function like attending physicians or co-founders, guiding founders through real operational challenges on an ongoing basis. This contrasts sharply with traditional accelerators such as Y Combinator, which typically run for only a few months.
Several core differences are emphasized. In terms of duration, traditional accelerators operate on short cycles, while SmartUp commits to startups for several years—typically 3 to 5, and sometimes up to 10—until they graduate by becoming profitable and fast-growing. In terms of goals, traditional accelerators focus on preparing companies for Demo Day and the next fundraising round, whereas SmartUp prioritizes profitability, positive cash flow, and independence. Stern notes that even companies from top accelerators can raise large amounts of capital and still stagnate or fail if they do not build a sustainable business model.
The depth of involvement also differs. SmartUp mentors meet weekly or bi-weekly with founders and act almost as co-founders, addressing concrete issues such as pricing, hiring, and product-market fit rather than offering only high-level advice.
Strategically, the SmartUp accelerator model is designed to help companies navigate “Terra Incognita,” the unknown territory of real markets. The focus is on modest investment levels, validating a real job to be done, and building a sustainable company that does not depend on constant external capital injections.
