Accelerator
Also Known As
A startup accelerator is a fixed-term (typically 3-6 month) program that provides early-stage startups with mentorship, education, resources, and often seed funding in exchange for equity.
What is an Accelerator?
Accelerators are cohort-based programs designed to help startups grow quickly. They provide intensive support for a limited time, culminating in a "demo day" where startups pitch to investors.
Accelerator Characteristics
| Aspect | Typical Terms |
|---|---|
| Duration | 3-6 months |
| Equity | 5-10% |
| Investment | $25K - $500K |
| Format | Cohort-based |
| Startups/Cohort | 10-30 |
Top Accelerators
- Y Combinator: Most famous, broad focus
- Techstars: Global network, corporate partnerships
- 500 Startups: International reach
- Plug and Play: Corporate innovation focus
Accelerator vs Venture Studio
| Aspect | Accelerator | Venture Studio |
|---|---|---|
| Idea Source | Founder brings | Studio creates |
| Duration | 3-6 months | Ongoing |
| Equity | 5-10% | 30-50% |
| Involvement | Periodic | Day-to-day |
| Format | Cohort | Individual |
When to Choose Each
Accelerator: Have an idea, need mentorship and network Venture Studio: Want help finding/validating idea, need co-founder level support
Example Usage
“After the accelerator program ended, they had raised their seed round and joined a venture studio for ongoing support.”