Accelerator

A fixed-term programme giving a small investment, mentorship and a demo day in exchange for a few percent of equity.

Example

Three months and $150k for 7%.

Important

You are buying network and forcing function, not money. Judge it on the alumni network and who else is in the batch.

Related terms

• Incubator — A programme that helps build a company from close to nothing, often providing space, services and sometimes a founding team.
• Angel investor — An individual investing their own money, usually at the earliest stage.
• Pre-seed — The earliest institutional money — usually before meaningful revenue, funding the search for product-market fit.

Lessons that explain it

• The funding stages, in order — Friends and family, angels, accelerators, pre-seed, seed, Series A and beyond — what each expects and what each is for. (12 min)
• Who the investors actually are — Angels, VCs, accelerators, family offices, corporate VCs, private equity, venture debt. They want different things — pitch them differently. (12 min)

All 176 terms in the Founder glossary