Seed accelerator
Encyclopedia
Seed Accelerator is a type of startup incubator
but has 3 major differences. 1) they begin with a cohort intake process whereby they accept applications for entry and pick a set number per round. 2) they make an equity investment in the startups
, usually sub $150,000 USD, but often sub $20,000 range. In-turn, the business model
is based on generating venture style returns
, not rent, or fees for services. 3) the primary value to the entrepreneur
is derived from the mentoring, connections, and notoriety of being chosen to be a part of the accelerator.
Seed Accelerators do not necessarily need to include a physical space, but many do.
Business incubator
Business incubators are programs designed to accelerate the successful development of entrepreneurial companies through an array of business support resources and services, developed and orchestrated by incubator management and offered both in the incubator and through its network of contacts...
but has 3 major differences. 1) they begin with a cohort intake process whereby they accept applications for entry and pick a set number per round. 2) they make an equity investment in the startups
Startup company
A startup company or startup is a company with a limited operating history. These companies, generally newly created, are in a phase of development and research for markets...
, usually sub $150,000 USD, but often sub $20,000 range. In-turn, the business model
Business model
A business model describes the rationale of how an organization creates, delivers, and captures value...
is based on generating venture style returns
Venture capital
Venture capital is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as...
, not rent, or fees for services. 3) the primary value to the entrepreneur
Entrepreneur
An entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative.The term was originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon. Entrepreneur in English is a term applied to a person who is willing to...
is derived from the mentoring, connections, and notoriety of being chosen to be a part of the accelerator.
Seed Accelerators do not necessarily need to include a physical space, but many do.