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What Is A Start Up Accelerator? How Startups Get Seed Capital

Startup accelerator also referred to as seed accelerator, is a form of a business incubator that is chasing profit. Its main purpose is helping high potential business ideas with mentoring, office space, know-how and of courseĀ seed capital in exchange for a piece of the equity of the new business. The support is for a certain period of time ranging from 3 to 18 months and it is usually provided in the very beginning of a start up. Business incubators are different from seed accelerators because they are usually non-profit, government-funded organizations that don’t take a stake in the business and are focused on broad types of ventures. Accelerator is usually focused on high technology companies and anyone can apply for approval there.

The main features of accelerators are:

* application procedure open to anyone with a cool business idea

* an investment in the new company is made (usually around several hundreds of dollars) in exchange for equity

* target companies are these founded by small teams, not single entrepreneurs

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* the accepted companies have to graduate in a predefined period (3-18 months), in which they receive mentoring, training, know-how and other help.

* the training support happens in groups of many founders

 

Seed Accelerators

Seed Accelerators

Benefits of seed accelerators

There are many benefits that come from these organizations. Some of them are:

* mentoring and receiving professional know-how

* meeting new entrepreneurs and making new business connections

* start-up funding

* access to special technologies and resources

* further support

 

There are not too many seed accelerators, because this is a relatively new conception. The first one of them was launched back in the year 2005 and its name is Y-Combinator. In was started not elsewhere but in Silicon Valley taking advantage of the wonderful business climate there. In 2006 was launched the accelerator TechStars and a year later SeedCamp opened doors in Europe. Currently, there are more than 300 startup accelerators around the globe and their number hasn’t stopped growing.

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Here is a constantly updated list of almost all startup accelerators in the world:

http://www.seed-db.com/

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