Fundraising
Accelerator
A fixed-term program that provides startups with mentorship, resources, and a small amount of capital in exchange for equity, culminating in a demo day.
Accelerators are cohort-based programs, typically 3-6 months long, that help early-stage startups rapidly develop their businesses. The most famous are Y Combinator and Techstars. In exchange for a small equity stake (usually 5-10%), accelerators provide seed funding, office space, mentorship from experienced founders and investors, and access to a network of alumni and investors. Programs culminate in a 'demo day' where startups pitch to a room full of investors. Accelerators have become a key pipeline for seed-stage deals, with YC alumni companies collectively worth over $500 billion.