Accelerator

Accelerator is a program or organization that provides intensive support to early-stage startups with the goal of accelerating them through all the key stages of turning an idea into a marketable product. Unlike incubators that can last years, accelerators have focused periods of three to six months, often followed by a demo day (pitch day) in front of potential investors.

During their stay in an accelerator, a startup gains access to strategic mentors who have experience in company development, financial planning, technology, marketing, and the legal and regulatory framework. This mentorship often comes from successful entrepreneurs who have already gone through the processes that their startups go through. Accelerators also provide access to a network of hundreds to thousands of partners – from IT experts to distributors to potential first customers and investors.

Financially, accelerators usually provide seed capital (usually $20,000 to $150,000) in exchange for a small equity stake in the company – usually 3% to 8%. This is enough to cover initial costs (MVP development, market research, first marketing campaigns), but not enough to scale. That is why most startups after the accelerator seek Seed or Series A investment.

Well-known accelerators in the world are Y Combinator, TechStars, 500 Global and numerous local accelerators by country. Each accelerator usually has a focus on a specific industry sector – some specialize in edtech, some in FinTech, others in climate startups. Completing the program is not a guarantee of success, but it drastically increases the chances because the startup gains credibility with investors and first clients.