Building an Accelerator: Strategy, Structure, and Achieving Success Today

Accelerators have played a major role in shaping startup ecosystems, serving as powerful platforms for driving entrepreneurship, fostering collaboration, and creating economic impact. Today, their effectiveness depends on specialization, strategic alignment, and high-value networks. In a rapidly changing investment environment, broad, generalist accelerators are facing challenges, while focused programs — especially those in deep tech, AI, and other emerging sectors — continue to provide strong benefits. Whether run by venture firms, corporations, or mission-driven organizations, accelerators can still create value when structured thoughtfully. Here we explore the motivations for launching an accelerator, key structural considerations, and the evolving support mechanisms that drive success.

1. Why Run an Accelerator?

Launching an accelerator is a significant endeavor. Before getting started, it is essential to identify your purpose, as there are many motivations that could be applicable — consider whether any of the following align with your goals:

Deal Flow and Early Access

Accelerators can provide a steady pipeline of vetted startups. Early access to these promising companies enables you to invest ahead of competitors, gaining an advantage in securing the best opportunities.

Equity Ownership

By offering resources such as funding, education, mentorship, and exposure, your accelerator may be able to secure outsized equity stakes in participating companies. This creates a future financial upside for you if the companies succeed and scale.

Brand Building

Running an accelerator can help you establish yourself as a thought leader and supporter of innovation within your industry. This can attract more investors, co-investors, and companies to your brand, amplifying your reputation.

Knowledge Networks 

Accelerators cultivate ecosystems that facilitate the exchange of knowledge, customers, and technology, driving collective growth. This dynamic emerges through collaboration among participants, including entrepreneurs, mentors, advisors, and investors.

Economic Impact and Mission Advancement

By supporting niche companies that are directly impacting communities, accelerators can stimulate local economies, create jobs, and promote inclusive entrepreneurship. If your firm is a mission-driven organization, this approach may be a fit. 

2. Structure

A well-structured accelerator balances program quality, resource availability, and participant needs. Key elements include:

Capital and Funding 

Providing funding — whether through capital and equity investments, grants, or convertible notes — enhances the appeal of your accelerator program to high-potential companies. Entrepreneurs are more likely to participate in your accelerator when financial support reduces the risk of their time commitment, allowing them to focus on growth. When companies graduate from accelerators with financial backing, they often have stronger long-term prospects, whether by securing additional capital, achieving profitability, or scaling their operations. 

Note that some accelerators do not provide direct capital or funding. Instead, they offer valuable resources to support company growth, prioritizing mentorship, industry connections, and operational support over financial investment. This approach may be suitable if your accelerator serves industries or business models that do not heavily rely on investment capital (e.g., social enterprises), leverages corporate or government partnerships for funding, or seeks to avoid conflicts associated with equity ownership.

Milestones

Milestone-based funding can be used to ensure that capital from your accelerator is distributed efficiently by requiring companies to demonstrate progress before unlocking additional investment. Typically, companies receive an initial sum to support early needs, and then 1-3 additional amounts as key milestones are achieved. Milestones may include product development progress, revenue growth, traction, cohort engagement, completion of assignments, or fundraising readiness. However, for this model to be a fit for you and effective, milestones must be realistic and closely monitored. If not properly managed, companies may begin to stagnate, or become overly dependent on accelerator support rather than pursuing customers, revenue, and external investors.

Cohort Size

Cohort sizes can average between 6-15 companies for smaller programs, which allows for more personalized attention. While larger programs can include over 100 companies, which is more fitting in virtual or hybrid formats that incorporate self-guided learning, recorded content, and peer-to-peer collaboration. For larger cohorts, consider dividing companies into smaller groups, with accelerator partners or stakeholders serving as cohort leaders to provide more focused mentorship and a supportive experience.

Duration

Most accelerators run for an average of 2-8 months, providing enough time to deliver participating companies a comprehensive curriculum while keeping the entrepreneurs engaged.

Frequency

The frequency of your accelerator’s cohorts depends on program length and resource availability. Running 1 cohort annually is ideal for longer programs requiring deep focus or significant investment, typically spanning four to eight months each. In contrast, running 2-3 cohorts annually suits shorter, intensive programs, with sufficient resources to support multiple cycles, typically spanning two to three months each.

Focus Areas

Industry Focus: Decide whether the program will be general or specialized (e.g., fintech, clean energy, or social impact).

Company Stage: Select companies at a similar development of stage, such as ideation, early-stage, or scaling.

Geography: Define your accelerator’s reach — local, regional, or global — based on your firm's priorities.

Demo Day or Graduation 

The program should culminate in a demo day or graduation moment, where participants pitch their ideas to investors, stakeholders, or a selective audience. For many companies, the demo day is one of the main incentives to join an accelerator, providing a valuable opportunity to secure additional funding, land partnerships, explore new growth opportunities, and demonstrate progress.

3. Cohort Support 

The effectiveness of an accelerator can be heavily dependent on the level of support you provide to participating companies during each cohort. The more resources and guidance you offer, the stronger their outcomes. Here are key strategies to enhance their experience:

Have Great Mentors and Coaches 

Mentorship and coaching can be a defining element of success for an accelerator program. Experienced mentors help companies navigate challenges, avoid common pitfalls, and make informed decisions more efficiently. Companies benefit most from mentors with deep industry knowledge, as these experts provide insights into market trends, regulatory hurdles, and competitive landscapes.

To maximize impact, ensure that mentors are not only knowledgeable but also accessible and responsive to individuals in the cohort, providing real-time guidance. When mentors can engage dynamically and adapt quickly alongside entrepreneurs, your accelerator program can truly flourish. 

Set Expectations Early

Clearly outline the level of engagement and time commitment required during the application process *before* companies are selected for each cohort. Reinforce these expectations during a kickoff event to ensure alignment from the start.  

Establish Assignments

Introduce assignments to track participants’ progress and identify areas where additional assistance may be needed. Regular check-ins can help participants stay on track and receive the necessary guidance.

Mix Learning Modes

Offer a combination of in-person and virtual programming, including workshops, mentorship sessions, networking events, and hands-on interaction. This flexibility accommodates participants’ varying needs.

Build a Cohort Community

Organize a kickoff event to allow participants to connect and build relationships. Keep the momentum going by planning regular gatherings, both for business discussions and casual meetups. Creating a sense of community fosters collaboration throughout your program.

Designate a Program Manager

Having a dedicated program manager ensures smooth communication and logistics. This individual acts as the primary point of contact for participants and helps address urgent matters. 

Use Program Management Software

Leverage software to share real-time updates, such as event calendars, a library of resources, partners, company bios, and mentor bios. Accessibility and ease of use are critical for maintaining participant engagement.

Collect Feedback

Continuously collect feedback during and at the conclusion of programming to assess each participant’s experience. Leverage these insights to refine and enhance future cohorts. 

Today’s most effective accelerators prioritize specialization, strong industry networks, and clear pathways to capital. While the traditional accelerator model, with its large cohorts, standardized programming, and broad demo days, has possibly decreased some of its influence, many tailored, high-touch programs continue to thrive. The best accelerators are those that adapt to market needs, offering differentiated value to both entrepreneurs and investors. By building a program that aligns with a clear purpose, provides meaningful support, and fosters genuine collaboration, an accelerator can still be a powerful platform for driving innovation and long-term impact.

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By Shea Tate-Di Donna and Kaego Ogbechie Rust, authors of The Venture Fund Blueprint.

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Disclaimer: The providers, companies, examples, products, and services shared represent only a subset of available options and are based solely on internal fund manager conversations. These options are intended to be a general framework, not an exhaustive catalog, and should not be viewed as legal or tax advice, endorsements, recommendations, approvals, or rankings. We encourage you to do additional research into each category to find the resources that best fit your specific needs.