I'm curious about the financial aspect of accelerators. Specifically, I want to know if they generate profits or if their main purpose is non-profit, like supporting startups and entrepreneurs.
5
answers
DigitalTreasureHunter
Thu Dec 12 2024
The equity stake they take usually falls within a range of 5-10% of the startup's total shares.
StormGalaxy
Thu Dec 12 2024
Business accelerators often generate revenue by acquiring an equity stake in the startups they decide to fund.
ShintoBlessing
Wed Dec 11 2024
This equity stake serves as compensation for the various resources they provide to the startups.
Silvia
Wed Dec 11 2024
One of the primary resources offered is seed funding, which is crucial for startups in their early stages.
TaekwondoMasterStrength
Wed Dec 11 2024
In addition to seed funding, accelerators also provide office space and other essential resources to help startups grow.