An accelerator is defined simply, as something that increases speed.Business accelerators are no different. They invest in the early stages of a company and offer hand-on assistance and resources. All in an effort to expedite the success of said company.
Say for a second that your company is a sport’s club and that you want to compete to win a championship. In order to do that not only do you need a great team around you, but also a quality organization. One that provides vital resources needed to improve and grow. Business accelerators make these resources available and accessible, but for a cost.
If you are one of the many people saying “now wait a minute, this sounds like a business incubator”, you wouldn’t be wrong. Accelerators are very similar to incubators but with a few main differences. The first being capital. Accelerators feed more capital by the way of investments but usually at the cost of equity. While many incubators do have funding potential, they are geared more towards providing resources and networking.
The second difference is time. Business accelerators are typically more intense and concise. Programs only last three to four months long, while incubators accommodate longer development and foster slow growth. Business accelerators are important strategic investments in any startup. Only a few decades old, they have become essential for businesses to stay one step ahead of the competition in the early phases. Depending on where your company is at and what it’s needs are, chances are it could benefit tremendously from a business incubator or accelerator…maybe even both!