A business accelerator is a program that provides funding and mentorship to startups in exchange for equity. It is intense and time-limited, usually three to six months. Startups apply, get accepted, and then work like crazy to grow.

Accelerators differ from incubators. Incubators are often longer and focus on nurturing early ideas. Accelerators focus on rapid growth and getting to the next stage. They usually end with a demo day, where startups pitch to investors. Y Combinator, Techstars, and 500 Startups are well-known examples. The benefits go beyond money. Accelerators provide office space, legal advice, marketing help, and a network of alumni. The equity stake varies, often around 5 to 10 percent. Competition to get in is fierce. Not every startup benefits. Some founders find the pace too fast or the mentorship too generic. But for many, an accelerator is a shortcut to credibility, connections, and capital.

What they offer

• Seed funding
• Mentorship from experienced founders
• Office space and resources
• Networking opportunities
• Demo day pitch to investors