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
Cite this term
Round Funded. "Accelerator." Startup Fundraising Glossary.
Stable URL, it will not change: https://www.roundfunded.com/en/glossary/accelerator
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