Accelerator
A fixed-term program that provides early-stage startups with a small investment, mentorship, and structure in exchange for equity.
An accelerator runs a cohort-based program, typically lasting 3-4 months, providing participating startups a modest upfront investment (often in the low hundreds of thousands, structured as a SAFE), intensive mentorship, structured curriculum, and culminating in a demo day where companies pitch to a room of investors. In exchange, the accelerator takes a small equity stake, commonly around 6-7%.
Beyond the capital and curriculum, the real value many founders cite is the peer cohort (dozens of other founders going through the same intense period simultaneously) and the accelerator's investor network, which can meaningfully speed up a seed fundraise immediately following the program.
Evaluate an accelerator primarily on its actual track record of graduate companies successfully raising follow-on funding and its investor network's relevance to your specific sector — brand name matters less than whether the program's specific network and structure fit your company's stage and needs.
How much equity do accelerators typically take?
Commonly around 6-7% for a standard investment package, though terms vary meaningfully across programs — some offer larger investments for more equity, and some newer programs offer no-equity or fee-based structures instead.
Related terms
Run the numbers yourself: dilution, SAFE conversion, and fund-returner calculators.