Accelerators have contributed to the success of dozens of tech and web giants; some names on the list include Airbnb, Coinbase, Dropbox, Stripe, and Twitch. These unicorns went on to gain further investment support from some of the biggest names in the business—from JP Morgan to Sequoia Capital.
Accelerators are intense, breakneck-paced, immersive experiences that aim to compress years of learning into a few months. It’s no wonder founders who keep that momentum going are able to capitalize on it.
This is also why leading VCs have to keep up with those going through top accelerator programs. Building relationships with founders at this early stage can set you up for future investment opportunities.
Let’s take a look at how to do that.
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What is an accelerator?
An accelerator is an intensive program designed to help early-stage startups successfully scale their business, quickly. The goal is to provide them with mentors, capital, and resources so they can raise money at a higher valuation than they would otherwise.
Accelerators have played an important role in launching some of the most successful startups, with thousands of startups vying for limited spots every single year.
But what do accelerators get out of it?
Accelerators are often funded by educational institutions, companies, or even venture capital firms. When startups join an accelerator they also often gain access to funding and capital to support their venture, in exchange for equity.
This is how accelerators effectively source deals and expand their network. Rather than having to fill their pipeline with high-potential companies, running an accelerator program gets their foot in the door with key startups and founders early on in their growth journey—with the hope that their support and investment pays off in the long run.
The 10 best startup accelerators
Here are the top accelerators that produce leading startups, and the value they bring to potential portfolio companies.
1. Y Combinator
Many consider Y Combinator (YC) to be the pioneer of startup accelerators. Founded in 2005, YC now funds a new cohort of startups twice per year, investing $500k in each startup in exchange for 7% equity. YC works “intensively” with the startup for three months leading up to Demo Day when startups present their businesses to an invite-only audience. Some of Y Combinator’s most successful alumns include Airbnb, Dropbox, and Stripe.
YC prides itself on being a group of hackers. “The most important thing we do is work with startups on their ideas,” said Geoff Ralston, President of Y Combinator. This hacker mentality leads to the YC team focusing on “figuring out how to make things people want.”
The volume of companies also makes YC a great place to watch. While some accelerators may outrank them in exit rate, YC still has over 300 exits under its belt and counting. Teams that make it through YC are ready to hit the market with their product. “Over the course of three months we usually manage to help founders come up with initial answers to all of [their biggest questions]” Ralston added.
2. TechStars
Techstars is another accelerator with an impressive resume. Their list of alumni includes SendGrid, Outreach, SalesLoft, and ClassPass. Founded a year after Y Combinator in 2006, Techstars has helped launch more than 1,000 companies valued at a total of more than $21.3B. The program is three months long and centered around mentorship by connecting would-be founders to mentors and other professionals in the Techstars network.
Techstars runs over 50 accelerators, all over the world, during any given year. These include several vertical-specific programs such as its Farm to Fork Accelerator, which offers startups exposure to FoodTech and AgTech investors. Other accelerators are sponsored by marquee corporate partners such as Colliers and its Proptech Accelerator. Others are locally-focused, regional programs across major cities.
No matter where they’re working (or what they’re working on), Techstars has one goal: to help entrepreneurs succeed. “By bringing together ambitious founders and corporations, Techstars enables innovation through creative, powerful relationships” is proudly touted as a key part of their mission. The Techstars team understands the immense value in relationships and the effect that building (and maintaining) a reliable network can have on a business.
3. 500 Startups
500 Startups is the most active early-stage investor in the world. Their team has invested in more than 2,600 startups across 81 countries. Leading companies produced by 500 Startups, including Udemy, Many Chat, and Meijuri, cover a wide array of industries and their portfolio continues to diversify as their global footprint grows.
500 Startups runs a series of different accelerators. Its flagship San Francisco Accelerator has been supporting disruptive ideas for more than 10 years. The program is four months long, during which 500 Startups invests $150,000 in participating companies in exchange for 6% equity.
Much like other accelerator programs though, the financial support is far from the most valuable asset. 500 Startups also provides access to a community of peers, a network of established industry leaders, and an intensive, MBA-like curriculum.
500 Startups has launched several other accelerators in addition to its flagship one. Some focus on specific geographies. For example, its 500 LatAm Accelerator is for Spanish-speaking founders who participate in a 16-week program in Mexico City. Others focus on specific stages.
4. Plug and Play
Plug and Play boasts an elite group of alumni, including fintech leaders Paypal and LendingClub. With a network of more than 50,000 startups and 500+ companies, Plug and Play focuses on connecting changemakers and leading organizations. This collaboration between startups and large corporations can support startup growth and drive innovation at larger companies, and VCs can easily step in to help support that relationship.
Together, Plug and Play’s portfolio companies have raised more than $9B. Investments vary from approximately $25k to $500k. And it is stage agnostic, investing in companies from seed stage to Series C and beyond. Like many other accelerators, Plug and Play offers accelerators focused on different sectors, such as insurtech, enterprise tech, cybersecurity, real estate and construction, and even fashion.
What differentiates Plug and Play from many others is that it doesn’t take equity because they “would much rather invest in your next round of funding fairly.” This can be especially tempting for pre-seed startups hoping to bring their idea to fruition before committing to a share percentage.
5. Alchemist Accelerator
The Alchemist Accelerator calls itself the “world’s best accelerator for startups that monetize from enterprises.” With its all-star class of alumni, it seems to be living up to that title. Alumni that went on to a strong exit event include:
- Wise.io, a machine learning startup, was acquired by General Electric,
- Assemblage, a real-time collaboration software, was acquired by Cisco,
- Mobilespan, a cloud security company, was acquired by Dropbox.
The Alchemist Accelerator has incubated more than 500 startups, representing over $1.5B in funding. The Alchemist only accepts about 25 teams per class, offering them $25k or more in funding, taking an average of 5% equity.
Alchemist’s primary differentiator is that it was founded and driven by corporate venture capital investors. If your team is exploring business partnerships with larger companies or wants to build these relationships to expand your value for other startups in your portfolio, you have an opportunity to make new connections with the Alchemist network.
The network has over 3,000 faculty and mentors, and over 5,000 venture investors who have experience helping startups monetize from enterprise expansions. It also offers its portfolio companies access to large enterprises that partner with participants through pilots and investments.
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6. SOSV
SOSV is a multi-stage venture capital investor that runs a series of accelerators, investing in about 150 companies each year through three- to six-month-long programs. Standout startups like Storyful, True Made Foods, and Getaround all got their start in SOSV accelerators. To date, SOSV has funded more than 1800 companies. It invests in its accelerator participants through a convertible instrument called an Accelerator Contract for Equity (ACE) similar to a Simple Agreement for Future Equity (SAFE) where investors can convert their investment into equity at a future date.
SOSV has created a series of different accelerator programs to focus on its mission to support human and planetary health.
- HAX is the world’s first accelerator program for hardware, robotics, and connected devices,
- IndieBio focuses on human and planetary health,
- Orbit Startups is designed for growth in emerging and frontier markets,
- dlab is leading companies in the development of web3, decentralization, and blockchain.
To support entrepreneurs in building tangible, physical products, SOSV has a global staff of engineers, designers, and scientists to help accelerate product development, as well as fully outfitted laboratory and maker spaces for founders with more tactical support needs.
7. AngelPad
AngelPad is a seed accelerator based in San Francisco and New York City. Launching over 150 companies since 2010, Angel Pad has been consistently ranked as the number one accelerator in the U.S. by leading institutions such as MIT, Brown, and the University of Richmond.
Alumni include notable companies across a range of industries including Postmates, AllTrails, Pipedrive, and Buffer. Together, AngelPad companies have raised over $1.8B in funding, with almost 10% of companies with valuations over $100M.
AngelPad’s key differentiator includes smaller cohorts and a hands-on approach that has been called the “Anti-Y Combinator”. The program takes 15 teams every six months, invests $120,000 per company and works with them over 12 weeks through mentorship, community, and access to investors.
8. MassChallenge
Founded in Boston, MassChallenge has scaled into a global network for entrepreneurs and innovators, particularly in the healthcare and biotech space.
One of the largest accelerators in the world, MassChallenge has multiple accelerator programs including:
- Early-stage accelerators that are industry-agnostic, with locations based out of the U.S., Mexico, Israel, and Switzerland
- Challenge programs to connect leaders with larger industry entities in finance, healthcare, and sustainable food systems.
- Bridge to MassChallenge to support regional economic development.
- Beyond accelerators with a variety of accelerator-like programs for startups including challenges, mentorship programs, and sprint programs.
The multi-national approach means MassChallenge startups have access to extensive resources around the world. Unlike many other accelerators, MassChallenge’s programs are all equity-free, helping founders retain ownership of their company as they scale.
9. Startupbootcamp
With a steady foothold in Europe, Startupboocamp is another globally-recognized accelerator. With a total portfolio valuation of €5.6B they’ve taken an industry-focused approach to connect businesses with an ecosystem of experts in their respective fields.
With over 80 startup accelerators spanning over 20 countries, each program is three months long, designed to help companies achieve results that would otherwise take over two years. Accelerator programs have spanned future-focused industries from energy & sustainability, AI and Web3, to food and agritech.
Startupbootcamp was the first startup accelerator listed on the stock exchange, helping investors engage directly with their network of portfolio companies.
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10. LAUNCH Accelerator
LAUNCH is a pre-series A accelerator based out of California. They’ve funded over 30 cohorts that have gone through their 14-week program.
LAUNCH stands out among other accelerators by only selecting seven startups for every cohort, offering $125,000 cash in exchange for 7% equity—with the option to invest in future rounds of funding. The design of LAUNCH makes them both an accelerator, a seed fund, and a syndicate that allows them to invest in founders over the long term.
Their portfolio includes a wide range of SaaS, consumer subscription, and fintech companies. Their accelerator model is also primarily virtual, helping founders outside of Silicon Valley and the Bay Area gain access to the resources they need to build and fund their companies.
Leading investors build the right connections at the right time
Accelerators can catapult startups to success. There are hundreds of high-impact accelerators that have produced dozens of the world’s most highly valued unicorns. Uncovering the next big disruptor isn’t a guarantee, but starting your deal sourcing search with these leading accelerators can start you in the right direction.
Companies navigating the accelerator world are usually early enough in their journeys that they need support from all directions—everywhere from learning industry knowledge and business operations best practices to finding product-market fit.
Identify accelerators that align with your firm’s investment thesis and work closely with them to build relationships with new applicants to get a head start on your future deal pipeline. You never know when the next unicorn may rear its horn.
Get the most from your network with relationship intelligence
As you expand your network through top accelerator programs, it’s important to make the most of those relationships. The key to turning relationships into closed deals? Relationship intelligence.
Affinity helps dealmakers find and close deals faster by strengthening and growing their firm’s collective network.
By getting a complete picture of your firm’s entire network, you can see who has connections to founders and other key people in your dealmaking network. From uncovering the best path for deal sourcing to finding a warm path of introduction to a key founder, you not only minimize missed opportunities but can close deals up to 25% percent faster.
Discover how Affinity CRM harnesses the power of your firm’s relationships to find, manage, and close more deals.
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Top accelerator FAQs
What is the purpose of an accelerator?
The purpose of an accelerator is to help startups and early-stage companies accelerate their growth. By providing guidance, resources, and access to industry experts, founders and entrepreneurs can grow their businesses and set them up for success in future fundraising rounds.
What are the most successful accelerators?
Some of the most successful accelerators include Y Combinator, AngelPad, MassChallenge, and beyond.
The success of an accelerator is often determined by the total capital raised, the number of successful startups, alumni company valuation, or successful exits. However, every accelerator is different and offers unique value for both founders and investors.
What are the most commonly used accelerators?
The most commonly used tech startup accelerators include Y Combinator, 500 Startups, Techstars, Plug and Play, and more.
Many accelerator programs are very difficult to get into, with acceptance rates as low as just a few percent. Most companies choose accelerators based on the resources available to them, the funding available, the type of industry, or the venture stage.
What’s the difference between an accelerator and an incubator?
An accelerator focuses on growing and scaling early-stage startups. Many accelerator programs require companies to have a viable product or operational business model to work from before they can be accepted into the program.
Startup incubators, on the other hand, focus on the earlier stages of business development, such as product development and market research. The goal of an incubator is to help entrepreneurs turn their high-potential ideas into a viable business.
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