Accelerator
Example
Techstars and Y Combinator are two well-known startup accelerators that have helped companies like Airbnb and Dropbox grow from early concepts to global successes.
Definition
An accelerator is a fixed-term, cohort-based program that provides startup companies with mentorship, educational resources, and opportunities to pitch their business ideas to investors. These programs are designed to fast-track the growth and development of startups, often focusing on scaling the business within a short period, typically 3 to 6 months. During this time, startups receive guidance from seasoned entrepreneurs, industry experts, and investors, enabling them to refine their product, business model, and go-to-market strategies. Many accelerators also provide seed funding in exchange for equity, giving startups both financial support and access to networks that can help propel them to the next stage of their business journey. The culmination of most accelerator programs is a 'demo day,' where startups present their progress to a group of potential investors. Accelerators are crucial for early-stage startups as they help them avoid common pitfalls, gain credibility, and secure crucial funding for future growth.
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