Accelerator
Definition
An accelerator is a fixed-term, cohort-based startup program that invests capital for equity and provides mentorship, structure, and investor access, typically ending in a demo day. Most programs run about three months and invest between $100K and $500K for 5 to 10 percent equity.
How it comes up in fundraising
Founders join accelerators like Y Combinator or Techstars to compress early company-building and raise a round shortly after demo day.
Frequently asked questions
How is an accelerator different from an incubator?
Accelerators are fixed-term and invest money for equity; incubators are open-ended, focus on idea-stage support, and often take no equity.
How much equity do accelerators take?
Typically 5 to 10 percent. Y Combinator invests $500K on its standard deal, which includes 7 percent plus an uncapped MFN SAFE.
Round Funded resources
Put this term to work
Definitions win negotiations only when you are in one. Find the investors who fund your stage and start the conversation.
Browse the investor database