What is a Business Accelerator?

by Startacus Admin
A little while ago, we discussed what exactly a business incubator was and the benefits it offered. In a similar vein, we're now turning our attention to business accelerators.
At this point, you may be thinking “What’s the difference - aren't they the same?” and whilst there are certainly similarities, they're both quite unique in their own way.
If you're curious to find out a little more, then read on...
The most important and perhaps the key difference worth mentioning between the two is finance.
Business accelerators focus on funding and accelerating your business from early stage startup (potentially still at the concept stage) to scaling and revenue generating, whereas incubators tend to focus more on mentoring, networking and in office support. All of these things are absolutely essential for a fledgling business, but when you want to start off, sometimes finance and the fear of being able to support yourself is a massive deterrent and will stop you from taking the plunge.
If you decide to take up space in an accelerator, your time is usually limited to a short period of about 3-4 months and the business accelerator will usually give you a small level of investment / pre-seed investment to help you progress. It is never usually a massive amount (but can be) but it will hopefully increase your chances of investment and venture capital from third parties outside of the accelerator.
There will be an application process, whereby you apply alongside other startups to enter that period or year's accelerator programme. Successfully shortlisted startups who are deemed to have the potential for development and growth will then enter the accelerator programme. A typical accelerator programme will often end with a demo or pitching day, where all the startups will pitch their business ideas to potential angels and investors.
In short, a business accelerator is there to help you get your business model fully in place, start a financial domino effect and hopefully be the start of financial growth and security for your business. In return for this investment, most accelerators will expect startups to give up a little equity or share of their business.
Most accelerators will offer mentoring support from successful entrepreneurs. These entrepreneurs are usually individuals who are interested in helping out the local startup or business scene and who have proven experience in creating and building successful businesses. The support that they provide can make all the difference. After all, having guidance, expert advice and support from a seasoned pro can help you make the right decisions for your business, particularly when it's time for you to leave the accelerator.
In essence then, if you’re still in the very early stages with your business and need a little time to refine your business plan and investor pitch, an accelerator programme may be the right path to take.
If you'd like to find out a little more about Business Accelerators, you may also like to read:
- MassChallenge UK Finalists revealed
- 25 Startup Terms you’ll probably hear and need to understand
- Kath Preston of Oxygen Accelerator chats to Startacus
Subscribe to our newsletter
If you would like to receive our startup themed newsletter, full of the latest startup opportunities, events, news, stories, tips and advice, then sign up here.
How to select your best ideas and take them forward - Chris Thomason, Founder of Ingenious Growth shares 5 tips to help you do just that.

Early stage VC fund Anamcara led by Female Solo GP Closes $10.6M Seed Fund to Invest in Founders Building Defining B2B Software Companies

Want to ensure your startup runs smoothly? Hamid Bagherzadeh, Legal expert and Co-Founder of LegaMart shares insights on the legal contracts that will help you do just that.

Koala, the innovative travel insurtech startup, secures investment to fuel its growth in Europe, expand its team and build additional travel protections.

The best early stage tech startups from across the UK revealed in Tech Nation’s final Rising Stars competition.

Over 100 organisations come together via The Micro Business Alliance to help provide a voice for the UK's startups, micro businesses and small businesses.

The lowdown on London-based hearing wellness startup Mumbli and its mission to help businesses provide inclusive spaces for all hearing abilities and preferences.

Tech Nation calls for tangible support to secure capital, talent, growth and exits needed to accelerate the growth of UK tech in decade ahead.

Glasgow-based This is Milk seeks investment for Neve Learning, its cloud-based Ed-Tech platform that has inclusivity and accessibility at its core.

With the UK facing a clear digital skills gap, Amy Caton, Digital Talent and Impact Senior Manager at BT Group shares some insights on what businesses should do to close that divide.
Published on: 23rd May 2015
If you would like to enable commenting via your Startacus account, please enable Disqus functionality in your Account Settings.







- Anamcara launches $10.6M seed fund to back new wave of business tech 30th Mar 2023 Early stage VC fund Anamcara led by Female Solo GP Closes $10.6M Seed Fund to Invest in Founders Building Defining B2B Software Companies
- Travel insurtech Koala raises €2m to accelerate its growth 29th Mar 2023 Koala, the innovative travel insurtech startup, secures investment to fuel its growth in Europe, expand its team and build additional travel protections.
- Tech Nation announces the 10 winners of its latest Rising Stars competition 29th Mar 2023 The best early stage tech startups from across the UK revealed in Tech Nation’s final Rising Stars competition.
- Micro Business Alliance launches to represent 75% of the UK’s businesses 28th Mar 2023 Over 100 organisations come together via The Micro Business Alliance to help provide a voice for the UK's startups, micro businesses and small businesses.