Startup Accelerators

CHAPTER 2What Happens in an Accelerator

Learning-by-doing is vital to the process of scaling ventures, and the point of accelerators is to accelerate that process. In this way, founders compress years' worth of learning into a period of a few months.

Brad Feld, co-founder, Techstars; co-founder, Foundry Group

Accelerator Programs

Being fixed-term, cohort-based learning and support programs, accelerator programs usually occur over a period usually ranging from three months to six months.^1,2 In this period, all the accelerated evolution, education, mentorship, coaching, connections, advice, hands-on support, strategy, and investment readiness preparation occurs—culminating in a public pitch event known as “demo day.”^3,4 Each accelerator program usually has a curriculum, occurs at an accelerator space (or co-working space), is operated by program managers, and has advisors/mentors.^5,6,7 Participant startup companies are typically referred to as “cohorts,” rather than individual companies.⁸ Most accelerators also have a network of active investors and other entrepreneurial ecosystem stakeholders whom they invite to “demo day.”^9,10,11 Investors can make investments before demo day, on demo day, after demo day, or not at all—if none of the cohort companies meet their investment criteria.^12,13 In the rest of this chapter, we unpack the different elements of accelerator programs in more detail (see Figure 2.1 for common elements) and provide a case study at the end of the chapter ...