The reciprocal value of mentorship in startups: Lessons from eWorks Accelerator

Mentoring is a process in which the mentor empowers the mentee to take independent action and develop their own experience, enabling them to reach significant decisions about complex issues (Kram, 1988). Specifically, entrepreneurial mentoring is an effective way of transferring soft entrepreneurial skills from mentors to mentees, contributing to increasing the chances of novice entrepreneurs succeeding in their ventures, thereby making the world a more equitable place. 

Mentoring literature has long emphasized the importance of the dyadic relationship between mentor and mentee (Clutterbuck, 1985). It acknowledges that mentoring is not just a one-way transfer of knowledge, but a complex social interaction (Rutti et al., 2013). This interaction sheds light on how entrepreneurs and mentors establish rules of exchange to balance costs and benefits in their relationship. A better understanding of these relational mechanisms not only clarifies how mentoring benefits entrepreneurs but also highlights the advantages for mentors — an area that has not yet received sufficient attention. 

Mentors value the exchange of ideas and find fulfillment in impacting others' businesses while exploring potential investment opportunities

We ran our study in Esade’s eWorks Incubator which is the program that allows entrepreneurs to take the first steps with their project: conceptualize their idea and develop a feasible project while empowering their entrepreneurial mindset and skills. eWorks supports potential ventures in their earliest stages and committed entrepreneurs aiming to launch a high-growth and high-impact startup. We aimed to explore mentoring dyads to better understand how mentors and mentees benefit from the relationship.  

Specifically, we seeked to identify different types of rewards and how their alignment or misalignment affects venture performance. While mentees may benefit from the knowledge, experience, and networks of mentors, mentors may also gain satisfaction from helping others succeed, expanding their networks, or gaining new insights from mentees. This mutual exchange of benefits encourages the formation and maintenance of long-term mentoring relationships (Rutti et al., 2013), ultimately resulting in improved venture performance. 

The mutual gains of mentorship in startups

Mentoring startup founders is driven by multiple motivations, encompassing personal development, the desire to give back, and the pursuit of personal and professional growth. Engaging with startup founders allows mentors to enhance their own skills and expand their professional networks, while also experiencing the satisfaction of contributing to the success of the next generation. This reciprocal relationship provides mentors with the opportunity to learn from the challenges and solutions faced by startups, thereby broadening their perspectives and commercial expertise. Mentors value the mutual exchange of ideas and find fulfillment in impacting others' businesses, often while exploring potential investment opportunities. Additionally, some mentors are motivated by a family background in entrepreneurship and a keen interest in staying connected with new market trends and innovations. 

Conversely, mentees engage in mentoring sessions for various reasons, primarily to address skill gaps and obtain crucial external viewpoints for their entrepreneurial journey. Recognizing their limitations in non-technical areas such as legal and marketing, they seek mentorship to improve these competencies. The lonely and uncertain nature of entrepreneurship drives individuals to seek social proof, expert opinions, and guidance to navigate complex challenges. Mentoring also offers reassurance, as mentees value second opinions from trusted sources within their network to ensure they are on the right path. Furthermore, they understand the importance of leveraging the experiences and networks of others to benefit their entrepreneurial endeavors, particularly in managing startup finance and other critical leadership aspects.  

Creating consistency and structure in mentoring

Ensuring a successful match-making process hinges on providing clear information about mentors' expertise and experience. This transparency empowers mentees to connect with mentors most relevant to their specific needs. Additionally, increasing the number of mentors would enable a more tailored approach, allowing for better management and support of the diverse requirements faced by startups within the program. Both mentors and mentees highlighted the need for a more formalized and structured approach to mentoring sessions. Implementing a framework that facilitates regular, well-defined interactions could foster more robust mentor-mentee relationships. This structure would ensure consistent engagement and contribute to a more productive and meaningful mentoring experience for all parties involved. Mentees, particularly those with limited entrepreneurial experience, expressed a preference for more directed guidance during sessions. A formal framework could incorporate elements that address this need, such as pre-defined discussion topics or goal-setting exercises. 

More formal structures could be beneficial for the program and the mentees

Finally, improvements to the documentation and tracking of information exchanged during mentoring sessions are crucial. Enhanced data collection would enable a more thorough evaluation of the program's impact. This would benefit both program organizers, who could use the data to refine the program structure, and founders, who could gain valuable insights from the experiences of their peers and make informed decisions regarding mentor selection. By offering access to anonymized feedback from previous mentees, founders could gain a better understanding of a mentor's strengths and approach before initiating a connection. 

Maximizing mentorship through a multi-mentor model

To improve the mentoring experience, the concept of a hybrid mentoring model, where startups have a dedicated, lead mentor supported by a pool of secondary mentors or subject matter experts, is highly favored. Both mentors and mentees perceive this hybrid approach as the most beneficial, followed by the method involving one, lead mentor. According to them, the vertical mentor approach, which involves a pool of mentors activated is the least sufficient, because the mentors cannot meet the startups’ needs and cannot provide them the most tailored support. 

According to the respondents, the hybrid mentoring approach has several benefits: 

• Deep, personalized guidance: A dedicated lead mentor fosters a strong relationship with the startup founders. Through regular, weekly meetings, the lead mentor gains a comprehensive understanding of the startup's progress and challenges. This in-depth knowledge allows for more effective support and tailored advice, crucial for navigating the intricacies of startup growth. 
• Access to specialized knowledge: The hybrid model complements the dedicated lead mentor with access to a pool of industry and topic experts. These experts provide targeted knowledge and insights on specific issues faced by the startup. This ensures the founders have access to the most relevant expertise at critical junctures. 
• Enhanced support for less experienced entrepreneurs: Founders with limited entrepreneurial experience may struggle to articulate their specific needs. A dedicated mentor can play a vital role in identifying these needs and providing consistent, tailored guidance. This personalized approach fosters confidence and empowers founders to make informed decisions. 

In conclusion, a structured, hybrid mentoring approach that balances personalized guidance with access to specialized knowledge can significantly enhance the startup mentoring experience, leading to improved outcomes for both mentors and mentees. Both parties should strive for alignment in their rewards through open communication, setting clear expectations, and regularly revisiting goals and objectives to ensure common gains from the relationship. Prioritizing activities that lead to the optimization of resources in the venture development process is essential. While mentors can offer strategic advice to avoid common pitfalls, mentees can implement this advice to accelerate their learning curve.