Startup accelerators

Author: Lucy Hoyle
Read time: 4 minutes
Published date: September 20, 2024

Joining an accelerator can be a game-changer, providing startups with mentorship, resources, and funding at a key moment in their development.

Contents: Download a list of 100+ top accelerators to find the right fit for you

What is a startup accelerator?

Accelerators are intensive three- to six-month programs that provide mentorship, resources, and a small amount of funding—usually in exchange for equity in your company. Generally, accelerators will take about 3—10% of your company’s equity in exchange for providing funding, guidance, and networking opportunities with venture capitalists and other investors.

For most accelerators, you’ll need to have more than just an idea to apply. You’ll need a prototype and often the first iteration of your product or service with initial market traction. Once accepted to an accelerator, you’ll work with startup advisors and seasoned entrepreneurs who can help you refine your product, business model, and pitch—as well as connect you to investors—so you’ll have a better chance of raising a seed funding round.

This video is a part of Carta’s free Startup Fundraising 101 curriculum .

Startup accelerator vs. incubator

While both accelerators and incubators are designed to help you build a successful business, there are some key differences between the two.

Accelerators are designed to help you accelerate the growth of an existing startup—usually in the seed-stage—that has a minimal viable product (MVP) and founding team in place. You’ll get actionable feedback to test and improve your product and business plan. Accelerators are often cohort-based, meaning a set number of startups get accepted in a class and they all go through the structured programming together. Accelerators also usually provide funding for a stake in your company.

Incubators are generally less structured than accelerators and provide the environment and resources to help you develop and refine your pre-seed or early-stage startup idea so you can turn it into a business. Unlike an accelerator, you don’t need to be in product development or have an MVP, business plan, or founding team to apply to a startup incubator.

When should you join a startup accelerator?

While there’s no right answer, it can be most beneficial to join an accelerator once you have initial product-market fit and are getting ready for your first fundraising round. Accelerators can help you gain credibility, expand your network quickly, and gain access to experienced entrepreneurs who can provide valuable business and leadership mentoring.

Most accelerators have strong relationships with a wide range of investors and are structured to help you improve your product and business plan with the goal of getting funded. Many accelerators end with what’s called a “demo day” where you get to pitch to their network of investors in hopes of raising your first round. While Series A startups aren't excluded from joining accelerator programs, it’s less common to join after your company has already raised its first priced round.

If you want to find an accelerator but aren't sure where to start, download our free list of over 100+ global accelerators.

How to apply to a startup accelerator

Getting accepted to a startup accelerator can be highly competitive and begins with a well-crafted application. Here are some tips to make your application stand out:

• Identify the right accelerator: Research accelerators that align with your startup's industry and stage.
• Highlight your unique value proposition: Clearly articulate what sets your startup apart.
• Prepare a compelling pitch deck or video: Present your business model, market analysis, and vision.
• Showcase your team's strength: Emphasize how your team's background and skills position you for success.
• Be clear and concise: Avoid jargon and complex explanations.

How do accelerators affect your company’s valuation?

The impact of joining a startup accelerator on your company's valuation is multifaceted. Typically, accelerators ask for about 3-10% equity in exchange for their investment and support, which can lead to equity dilution. However, being part of a well-regarded accelerator can enhance your company's market valuation and signal to potential investors that your startup is a worthwhile investment.

Download a list of 100+ top accelerators to find the right fit for you

Download our list of over 100 of the best startup accelerators across the U.S and in countries around the world.