Startup accelerator

Indian Economy glossary

Also called: Accelerator · Topic: Industrial Policy, Public Sector, MSMEs and Disinvestment · NCERT: Beyond NCERT

Meaning

A startup accelerator is a short, fixed-term programme that helps a batch of early startups grow fast. Each batch is called a cohort. The programme gives mentoring, contacts and a small investment, usually in return for a small share of the firm. It ends with a demo day, when each startup presents to investors to raise more funds.

Example

A three-month programme might take in 15 early startups as one cohort, coach them every week and invest a small sum in each. On demo day, the founders pitch to venture capital firms.

Don't confuse with

  • Business incubator: an incubator supports very early firms, sometimes at the idea stage, over a long period. It gives workspace and mentoring and has no fixed end date. An accelerator is short, cohort-based and ends with a demo day.

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