Top Startup Accelerator Programs
Written by Princess Wilson
As the term suggests, startup accelerators are programs designed to help accelerate the growth of early-stage startups. They do this by providing tools, skills, and resources to help fast-track the growth of a startup in a very short timeframe. These programs are usually intense, cohort-based, and short-term, with a demo day at the end of the program.
While still relatively new, these accelerator programs have grown in importance, with many of the world’s notable companies being alumni of these programs. Hence, getting accepted into one is now viewed as a badge of honor for many founders.
If you’re a founder wondering what accelerator program to join, this article will take you into some of the best startup accelerators in the world.
1. Y. Combinator
Founded in 2005, Y combinator is one of the most notable accelerators in the world and is considered the pioneer accelerator. The accelerator is located in Mountain View, California, USA, and is known for investing in high-growth and seed-stage tech startups. Y Combinator invests $500,000 in startups that get accepted into the program in return for 7% of each company.
They have two batches each year, each lasting three months leading up to a Demo Day for startups to present their ideas. This accelerator has funded over 3,500 startups and is the launchpad for many global companies like Reddit, Dropbox, Coinbase, Airbnb, Stripe, and more.
2. Techstars
Techstars is a 3-month long accelerator program located in Boulder, Colorado, USA, and is an excellent choice for first-time entrepreneurs, tech startups, and high-growth startups. Founded in 2006, it is one of the largest pre-seed investors in the world and has invested in more than 3,300 early-stage startups. Beyond funding, this accelerator provides access to mentorship, talent, infrastructure, and more.
Techstars has notable alumni like Uber, DigitalOcean, Twilo, and more. The company runs more than 50 accelerators globally and hosts more events like Startup Week and Startup Weekend to help companies scale faster. Techstars offers a $20,000 investment in return for 6% equity, and, on acceptance to the program, all startups are also offered an optional $100,000 convertible note.
3. Accelerate at The Bulb
Accelerate at The Bulb is a program that helps early-stage, impact-driven African tech founders build sustainable businesses by providing the right resources, community, network, and mentorship to help them scale. Founded in 2020, this accelerator runs once a year for 8 weeks. The program ends with a Demo Day where the company, The Bulb, invests in at least five startups with about $20,000 in exchange for 5% equity. Angel investors and venture capitalists are also present, opening the way for more potential investments.
This accelerator is located in Lagos, Nigeria, but the program is virtual. It offers experienced training faculty, hands-on mentoring, peer-to-peer learning, and more. Some companies in its portfolio include MediPal, truQ, and Agriple. Applications are now open for a new cohort. Visit the website to learn more and register.
4. 500 Startups
500 startups is the most active early-stage investor in the world, with over 49 companies in its portfolio worth more than $1 billion. Located in Mountain View, California, USA, and founded in 2013, it is a venture capital firm that has invested in over 2,600 startups across the globe. They run different accelerators, such as the 4-month Flagship San Francisco accelerator, during which they invest $150,000 in participating startups in exchange for 6% equity. In addition, they offer access to a network of industry leaders, a community of peers, and an MBA-like curriculum.
500 Startups offers 4 large and 13 micro funds and provides services in 60 countries. Some success stories from this program include Udemy and Canva, with notable exit sales to Google and Rakuten. The companies produced by 500 Startups are spread across a wide array of industries.
5. Plug and Play
Plug and Play is an innovation-focused accelerator with more than 60 industry-focused accelerator programs in over 35 cities across the globe. They connect blue-chip corporations with startups and invest in over 250 companies yearly. It is located in Sunnyvale, California, USA, and runs a 12-week program. Plug and Play accommodate startups at any stage and has companies like PayPal and LendingClub as its alumni.
Plug and Play has a network of over 50,000 startups and more than 500 companies. Their portfolio of companies has raised over $9 billion. Their investments are between $50,000 and $250,000, and they have invested in 1,360 startups since their launch in 2006. Additionally, startups can still gain up to $1M in follow-up investments from Plug and Play directly. This accelerator has no fixed equity, but it ranges between 1%-5% of the company, depending on the amount invested.
6. Alchemist Accelerator
Alchemist Accelerator is a venture-backed initiative accelerating early-stage enterprise startups. Founded in 2012, they have accelerated over 300 startups, with 52% of these startups getting funded after graduating. It is the longest-standing enterprise-focused program and offers access to global markets and expertise. Nevertheless, other startups that adopted the enterprise business model are also qualified to apply for the program. They offer a six-month program with learning tracks tailored to different industries.
Alchemist Accelerator offers a network of enterprise-focused founders, mentors, and cash investment of about $25,000 to startups accepted into the program in exchange for 5% equity. Located in San Francisco, California, USA, this program only takes about 25 teams per class and has more than 3,000 faculty members and mentors, plus 5,000+ venture investors. Their portfolio companies include Prodigy and Eloquent Labs (acquired by Square).
7. MassChallenge
As the name of this accelerator suggests, MassChallenge is focused on accelerating innovators who work to solve massive challenges. Based in Boston, Massachusetts, USA, it runs 9 accelerator programs globally, focusing on Healthtech, Fintech, and sustainability. It has locations in the UK, Switzerland, Isreal, and Mexico.
MassChallenge has nearly 3,000 alumni startups that have raised a combined $8.6B+ and created more than 186,000 jobs. Since its launch in 2009, they have funded over 3,000 startups, with companies like Thinx and Ginkgo Bioworks in its portfolio. MassChallenge offers zero equity programs and a competition-based model that allows founders and alumni to compete for cash award prizes. It runs virtually for three months with three-day per-week curriculum sessions.
Conclusion
Accelerators are no doubt a great way to scale a startup quickly. They offer key skills, tools, and resources needed to help startups grow. They also provide funding opportunities and expose startups to an extensive network of professionals in their industry.
Still, it is crucial to note that they may not be for everyone, as some startups may prefer to grow slowly. If you’re an African founder looking to grow your startup and take it to another level, join the next cohort of Accelerate at The Bulb. Applications are open for a limited time, and classes begin in January 2023. Visit the official website to register.