Key takeaways
- Judge a programme by its alumni outcomes and investor network, not its brand alone.
- Know exactly how much equity you give and what you get for it.
- Talk to founders from the last two cohorts before accepting.
Accelerator or incubator?
Accelerators run fixed cohorts over a few months, often invest for equity, and end with a demo day. Incubators are usually longer, less structured, and often attached to universities or government bodies, sometimes with grants instead of equity. See the glossary for both.
Questions to ask
- What do they invest, and for how much equity?
- Who are the mentors, and how much time do they really give?
- What happened to the last two or three cohorts: funding raised, survival rate?
- Which investors attend demo day?
- Is it sector-focused, and does that fit you?
- Is the programme in-person, remote or hybrid, and can you relocate if needed?
Comparing equity deals
Work out the effective valuation: investment amount divided by equity taken. Then add the value of perks, credits and network. A programme that takes 7% for a small cheque must add a lot of non-cash value to be worth it.
When to say no
If the programme cannot show strong alumni outcomes, if the equity cost is high for the stage you are at, or if it would distract you from customers, it may be better to skip it. Browse accelerators and incubators to compare.
This guide is general information, not legal, tax or financial advice. Rules and programme terms change, so check official sources and speak to a qualified adviser before making decisions.