CHAPTER 11INVESTMENT

A corporate accelerator is a program for high growth startups, and these companies all need one thing to achieve that growth: money. This can come as revenue (sales) or investment (equity), but it is absolutely necessary to facilitate this high growth. Capital and customers are two of the main reasons that startups join accelerator programs. Investment is a keystone feature of accelerator programs, and one that corporates must be thoughtful about to ensure that their spending aligns with strategic goals.
There are multiple ways to invest in startups through an accelerator program and simply copying the investment model of independent venture accelerators is often a simplistic and ineffective way to invest for large corporations. Competing on the amount of investment dollars is also less likely to be successful than focusing on resources where corporates can provide unique advantages to startups. In fact, there are many more options on the table for corporate accelerators that can be compelling to top-tier startups and can give corporate accelerator programs a true competitive advantage over independent accelerators.
STRATEGIC INVESTMENT
The accelerator model grew out of the venture capital model, so most independent accelerators invest in a similar way to venture capital funds. However, this is aligned with being a financial investor versus a strategic ...
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