A startup accelerator is a short-term growth program for founders and their startups. Studies show graduates from top-rated accelerator programs reached key milestones sooner. There are several benefits of a startup accelerator, including:
- Seed funding: Most programs offer their companies seed investments. The average accelerator equity deal was $38,000 in 2018. These investments by the accelerator are often given in exchange for equity ownership in the company invested in.
- Coworking and private work time: It's no secret hard work and dedication drive success. Accelerators give you lots of independent work time. These programs often provide co-working space or private offices for this purpose.
- Training: Many accelerator programs offer access to one-of-a-kind training opportunities. These come first from formal mentorship programs. These advisors are successful founders, investors, and experts in growing businesses. Throughout an accelerator, companies will take part in seminars, workshops, mentor meetings and pitch practices.
- Networking: Most accelerator programs rely on cohorts. Over several months, startups get to meet others in the early stages of development. They exchange ideas with fellow innovators that can drive future success and partnerships. Accepted startups also get to work with founders of successful companies and access to an alumni network.
- Demo days: Many programs culminate in a pitch day. Each team gets to pitch their startup to potential investors.