Business Accelerator

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Business Accelerators are organizations that offer a range of support services and funding opportunities for startups. They tend to work by enrolling startups in months-long programs that offer mentorship, office space and supply chain resources. More importantly, business accelerator programs offer access to capital and investment in return for startup equity. Startups essentially ‘graduate’ from their accelerator program after three or four months — which means that development projects are time-sensitive and very intensive. The primary reason accelerators have exploded in popularity is because they are designed to provide the best of both worlds for both startups as well as investors. Because accelerators stringently vet participating businesses, investors don’t need to waste loads of time sifting through duds in order to track down and evaluate fantastic new startups. Instead, angels can simply invest in accelerators that take on shares in startups themselves. Accelerators also structure these investments as real options which means that early stage investors have the right to make future investments if they choose to. That being said, it’s not an obligation to invest more.[1]

See Also


  1. What is a Business Accelerator? Small Biz Trends

Further Reading

  • Startup Accelerators. The History and Definition. WBI
  • What Startup Accelerators Really Do
  • The Insider: Three Reasons To Apply To A Business Accelerator Program Forbes
  • Is A Startup Incubator Or Accelerator Right For You? Forbes