Meaning of “Startup accelerator”
also known as seed accelerator, is fixed-term, cohort-based programs that include seed investment, connections, mentorship, educational components, and culminate in a public pitch event or demo day to accelerate growth. Most startup accelerators in Silicon Valley and globally are privately funded as an investment fund that take equity and focus on a wide range of industries.
In contrast, business incubators (different from accelerators) are government-funded, generally take no equity, and focus on biotech, financial technology (“FinTech”), medical technology (“MedTech”), clean tech or product-centric companies. Unlike business incubators, the application process for startup accelerators is open to anyone, but highly competitive. There are specific types of startup accelerators, such as corporate accelerator, which are often subsidiaries or programs of larger corporations that act like startup accelerators.