The first seed accelerator, Y Combinator, was launched in the USA in 2005. Unlike incubators, that “incubate” new ideas, the purpose of an accelerator is to rapidly “accelerate” and scale-up start-ups with global potential through a program of education, mentorship and access to funding.
Not all accelerators are the same, but they typically support a small cohort of early-stage innovative tech companies each year, through a 3 to 12 month learn-by-doing program. The program may include office space, workshops, mentoring, networking, pitch nights, demo days and access to industry specialists and investors.
The selection process is highly competitive and only a small percentage of applicants are successful. Many accelerators provide seed capital, from $10K to $150K plus, and may take an equity position in the start-ups they support. Some are industry-specific or linked to corporates or venture funds.
It is estimated that there are now over 7,000 plus accelerators globally. Before joining an accelerator ensure that you understand what they are offering and the possible benefits to your business.
If you don’t have time for an accelerator or need help to find one call INNOVIC on (03) 8060 3504 or www.innovic.com.au
