Startup accelerator: Difference between revisions

Revision as of 12:31, 29 August 2023

Revision as of 14:38, 11 September 2023

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The main differences between business [[Business incubator|incubators]], [[Startup studio|startup studios]],<ref>{{Cite web |last=Kronenberger |first=Craig |date=February 23, 2021 |title=What Startup Model is Right for You? |url=https://medium.com/startup-studio-insider/startup-studios-vs-accelerators-82b8545aba0a |access-date=March 23, 2021 |website=Medium |language=en}}</ref> and accelerators are:<ref name="accelerating-studies" /><ref name="miller">{{Cite book |last=Miller |first=Paul |url=http://www.nesta.org.uk/library/documents/StartupFactoriesv18.pdf |title=The Startup Factories - The rise of accelerator programmes to support new technology ventures |last2=Bound, Kirsten |date=June 2011 |publisher=[[NESTA]] |___location=London, UK |page=3}}</ref>

# The application process is open to anyone but highly competitive. For instance, [[Y Combinator (company)|Y Combinator]] and [[TechStars]] have application acceptance rates between 1% and 3%.

# Seed [[equity investment|investment]] in [[Startup company|startups]] ismay usuallybe made, in exchange for equity. Typically, the investment is between {{US$|20000}} to {{US$|50000}} in the US, or {{GBP|10000}} to {{GBP|50000}} in Europe.<ref name="accelerating-studies" />

# The focus is generally on small teams, not on individual founders. Accelerators generally consider that one person is insufficient to handle all the work associated with a startup. However, a number of 'founder first' accelerators exist that focus on solo founders including [[Entrepreneur First]], [[Antler (venture capital firm)|Antler]], Oneday and Underdog Accelerator.<ref>{{Cite web |title=Underdog Startup Accelerator {{!}} Expert Support to Launch Your Startup |url=https://underdogaccelerator.com/ |access-date=2023-08-14 |website=Underdog Startup Accelerator {{!}} Expert Support to Launch Your Startup |language=en}}</ref>

# The startups must "graduate" by a given deadline, typically after 3 months. During this time, they receive intensive mentoring and training, and they are expected to iterate rapidly. Virtually all accelerators end their programs with a "demo day", where the startups present to investors.<ref name="gilani21">{{Cite web |last=Gilani |first=Aziz |last2=Dettori, Gianluca |date=July 16, 2011 |title=Incubators in US and Europe - Speed and scale in capital formation |url=http://www.slideshare.net/dgiluz/accellerators-in-us-and-europe/21 |access-date=September 14, 2012 |publisher=Kauffman Fellow Program |page=21}}</ref>