Founders Flash

Accelerators v. Venture Capital in Early Stage Funding

Accelerators have turned traditional early stage financing on its head by decreasing the costs of starting a new technology business and offering more than just financial support.  In exchange for equity in your business, an accelerator offers not only seed funding, but connections, mentoring, and exposure to a huge number of investors. This shift has given start-ups more power when negotiating with venture capitalists. When an accelerator sends its company to a demo-day, dozens of investors show up to bid, creating an auction-like environment that gives the upper hand to the start-ups.

Read more from “ How Accelerators Have Changed Startup Funding”  (Slate).

 
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