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).