If you've made up your mind that it's worth it for you to take a shot at entering accelerator programs for startups, how do you choose the right one to apply to? We've compiled a collection of some of the top options for you to consider, noting the must-knows about each.
Y Combinator
Often ranked as the best startup accelerator there is, Y Combinator is an accelerator pioneer that has an impressive list of alumni since its start in 2005. The accelerator funded over 4 thousand startups with an overall startup valuation of more than 600 billion USD.
Startups at various stages of development can apply to Y Combinator, in fact, more than half of the companies that went through the program had no revenue when applying. Plus, the rate of funding that companies raise after participation in YC is impressive. A lot of that is due to YC's extensive investor network that participants get invitation-only access to at the end of the program on Demo Day.
The YC community has over 6 thousand domain experts within the community, so startups can continue networking and collaborating with them after the batch. The competition for entering the program is intense, only 1.5% - 2% of the average 10 thousand applicants get accepted.
What they give: investment before the batch even begins, a dedicated YC Group Partner as an advisor, a 3-day in-person kickoff retreat, weekly meetups, top speakers, access to exclusive founders and investors networks, startup discounts to 100+ products
Program duration: 2 batches held twice a year (January-March and June-August), each lasts 3 months
How to apply: applications for each batch are accepted as far as 6 months in advance, startups apply by submitting an application on the official YC website, followed by an interview invitation
Terms: according to the standard terms, YC gives 500k USD to those who make the program for 7% equity (the 125k USD safe) and 375k USD uncapped safe (the Most Favored Nation provision safe)
Techstars
Techstars is definitely fairly listed among the best tech accelerators. It has been supporting early-stage and seed startups since 2006. Over 9000 founders have participated in the accelerator and revved up their growth with an aggregated 26.6 billion USD of raised funds. About 500 startups at various stages get selected each year, and, on average, they raise about 1 million USD after the program culminates with a Demo Day.
Techstars holds multiple mentorship-based programs a year in various locations, including the USA, UK, Canada, Australia, Norway, Germany, Saudi Arabia, Nigeria, and others. Some programs are in-person, others have a hybrid format.
What they give: workshops, curated resources, mentorship in aspects like getting traction and finding the perfect market, access to capital and a world-class network of investors, founders, mentors, and industry leaders, access to more than 300 partner perks (valued >1 million USD)
Program duration: 3 months
Terms: Techstars offers up to 120k USD investment to its alumni (20k USD provided upfront) for 6% common shares equity
How to apply: startups have to fill out a detailed application for the selected program to get it reviewed
Plug and Play
Numerous renowned companies have emerged from Plug and Play, one of the top startup accelerators founded in 2006. The company serves as a bridge between startups and large enterprises, helping businesses grow and scale to new markets.
It has more than 60 accelerator programs run each year in global locations. The accelerator helped more than 2500 startups that raised over 9 billion USD in aggregate. The specific industries of interest include Sustainability, Real Estate, Energy, Insurtech, Crypto, and Agtech, which are among the 20 verticals revolving around technology and innovation. Startups of different sizes and stages can be accepted (from seed to Series C and further). A cohort could include more than 50 startups.
Top Plug and Play alumni: PayPal, Lending Club, Dropbox, Tenor, Zoosk, GroundTruth
What they give: daily networking events, help in preparing for pitches, and let large corporations discover small startups
Program duration: varies, but takes several months on average
Terms: no equity is required for participating in the accelerator program, as an in-house VC, Plug and Play offers the chance to fund startups (from 25k to 500k USD) to become a future stakeholder and participate in the next funding rounds
How to apply: startups can apply to join the accelerator all year round, they fill out an application form on the portal
500 Global
The list of the best accelerator programs for startups won't be complete without 500 Global. Previously known as 500 Startups, their Global Flagship program was launched in 2010 and focuses on innovative tech startups from AI and SaaS to media, marketplaces, and beyond.
The company has invested in over 2.8k startups worldwide. It currently offers founder programs and seed accelerators for startups around the globe. Usually, there are two batches per program per year, with approximately 18 participants in each cohort.
What they give: a business-focused curriculum (covers product strategy, startup marketing, product design, sales, accounting, finance, startup culture, and more), access to a broad network, preparation for investor pitches, and access to an expansive investor network
Program duration: 3 months on average
Terms: the accelerator provides 150k USD in seed investment for a 6% stake
How to apply: it costs 37.5k USD to participate in the accelerator (the program fee could be deducted from their seed investment, which will, in this case, be 112.5k USD), startups fill out applications all year long on a rolling admissions basis
MassChallenge
MassChallenge is also considered one of the top startup accelerators in the world. On average, this global non-profit accelerator has about 10 programs a year, and importantly, all of them are zero-cost and zero-equity.
The programs for early-stage startups accept teams from all over the world and from different industries as long as they have less than 1 million USD in equity funding and have generated less than 2 million USD in annual revenue. The terms for their FinTech and HealthTech programs are different.
Top MassChallenge alumni: Bitso, Ginger, Hyliion, Spring Health
What they give: a 3-month curriculum with goal setting and product development, access to curated mentors and one-on-one mentorship, work in virtual groups, workshops, access to a peer network
Program duration: 4 months
Terms: all programs are zero-equity, accepted teams can receive cash rewards and other prizes
How to apply: teams create profiles on the official website and submit an application to join the selected program, which is followed by one or two judging rounds, finalists are invited to the program