What is accelerator?
In the past few years there has been a significant shift in the digital media startup environment, as the emergence of innovative technology has reduced the costs of company setup. As a result, many new ventures in this space need far less capital then they would have five years ago, and their needs place them below the required investment size of traditional VC firms.
To serve this market, new models of venture capital have emerged.
- Relatively small investments, usually around $20,000
- Time-limited support comprising programmed events and intensive mentoring, usually 3-4 months
- An application process that is open to all, yet highly competitive
- Provision of pre-seed investment, usually in exchange for equity
- A focus on small teams of professionals, not individual founders.
- Cohorts or ‘classes’ of startups rather than individual companies