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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.[1] Most startup accelerators in Silicon Valley and globally are privately funded as an investment fund[2] 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[3] or product-centric companies. Unlike business incubators, the application process for startup accelerators is open to anyone, but highly competitive.[4] 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.

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