You would have to be a hermit not to have noticed one of the fastest growing industries around – the business accelerator. If you Google “business accelerator,” you’ll get about 16 million results. 16 million!!! It seems that every city worth its salt is launching an accelerator in hopes of generating new businesses and job growth in their community. So does it work and should you find an accelerator for your new venture?
Let me first distinguish an accelerator from an incubator. In general, business incubators are physical facilities that house many early stage companies that share things like conference rooms and equipment. Some incubators like the LA Business Technology Center also offer mentoring and workshops that help entrepreneurs learn new skills. By contrast, accelerators are often structured as bootcamps or programs that may last a few months—just enough time to gestate an idea into a prototype and secure some funding. They are frequently started by investors. Some recent examples of accelerators are TechStars, which is based in Boulder, CO; Dreamit Ventures, based in Philadelphia, PA; and Santa Monica based Launchpad LA. Accelerators typically invest $25,000 - $50,000 in a venture for a 6 percent ownership stake. They provide lots of advice and guide the team toward their final pitch for larger amounts of money.
To read the full, original article click on this link: Accelerator Frenzy: what does it all mean? | TheVentureEdge
