Accelerator

A fixed-term program (often three months) that takes a cohort of startups, gives a small investment and mentorship, and ends in a demo day to investors. Y Combinator and Techstars are the best known.

Why it matters

A good accelerator compresses learning, opens investor doors, and lends credibility, in exchange for a slice of equity. For first-time founders without a network, the network and the signal can be worth more than the cash.

For example

A founder joins Y Combinator's batch, takes 500,000 dollars for 7 percent, and spends three months building toward a demo day in front of hundreds of investors.

Worth your time

Techstars Bangalore Accelerator Techstars · article A globally-branded accelerator with an India-based program, giving founders a clear, concrete reference point for the classic 'cash for equity' model and its terms. Comparing Techstars' offer against government incubators and 100X.VC is the clearest way to understand what the equity actually buys. Open techstars.com →

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