How does a business accelerator work?

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Likewise, the staff of an accelerator needs to raise capital from third parties such as multilateral organizations, investment funds and governments, as well as connect with the entrepreneurial ecosystem, angel investors and mentors who can promote the development of the companies participating in the program.

Below, you will find the most notable features of how a business accelerator works :

They base their activities on generations or batches , groups o austria phone number list f startups that participate in a program for a certain period of time.
The program extends over a certain time horizon, between 3 and 6 months .
To conclude the accelerator program, entrepreneurs must present their business to potential investors during a public pitch , an event called DemoDay .
Despite their focus on the technological area, more and more accelerators are expanding their horizons towards other sectors.
ROI through stock purchases.

Just like Venture Capital (VC) funds, business accelerators have the main objective of achieving excellent returns on their investments. To achieve this, they invest in the initial stages precisely to mitigate risks through connections, mentoring and effective management practices .