What are Top 5 Best Startup Accelerators in the US? Tips to Consider When You Apply for Them

When it comes to starting a business, many entrepreneurs don’t have the capital or access to investments that they need.

This is where incubators and accelerators come in as we explain in more details in this blog post. They are startups themselves and offer mentorship, resources, and other support to new businesses in exchange for a stake of your company.

Best startup accelerators take on entrepreneurs with varying stages of their business, from early stage startups looking for tools and contacts to later-stage companies looking for more intensive mentoring services.

There are currently more than 7000 accelerators and incubators operating throughout the world, according to a study by Hackernoon.

In this article we will discuss what an accelerator is, how they work, which ones you should apply to if you want your startup to get the necessary help in getting off the ground.

What is an accelerator?

Accelerators are programs that provide startups with resources, guidance, exposure, and assistance with getting their business off the ground.

While it’s a great option for companies that need capital or a boost to grow, many entrepreneurs choose to start their own programs because they don’t have access to investors or the amount of capital they need to get their business off the ground.

Accelerators sometimes partner with investors to provide seed funding and expertise to startups looking to grow their companies.

Many will partner with entrepreneurs to provide resources to help grow their companies, such as office space, mentors, and guidance on growing a business.

There are generally three stages an accelerator will work with: pre-seed, seed, and growth.

How does an accelerator work?

These programs work with start-ups as a business model. They receive equity (typically between 5% to 10%) in return for providing start-ups with resources and advice on growing their businesses.

Best startup accelerators typically have rounds (or batches) that they would accept startups so there are deadlines throughout the year to apply for their program. If you would like to apply keep the deadlines in mind. In addition, the majority of accelerators are sponsored by VCs or corporate investors and, hence, devote each program to a specific theme like HealthTech, FoodTech, or e-commerce, etc.

Once you have sent your application, which typically includes your pitch deck, CVs and some other info on your startup, there is a selection round where they first short list the candidates. In the next round, you should pitch your idea (3-5 min pitch) followed by the Q&A of the jury. Then they select between 5-10 teams for the program.

Once the program starts, the partnership and collaboration between the accelerator and the start-up are crucial.

During the acceleration stage, the partners help the start-up with funding, mentorship, and exposure. Once the start-up is off the ground, the partners work with the founders to help scale their business. Partners can be investors, accelerators, incubators, universities, and more.

As promised, here’s a list of top 5 accelerators in the US.

1. Y Combinator Accelerator

Y Combinator is a program that provides seed funding to start-ups through an acceleration program. YCombinator has worked with more than 4000 startups in the past 15 years and portfolio companies include Stripe, Airbnb, and Coinbase.

Founded by Paul Graham in the early 2000s, the accelerator provides startups with mentorship and resources to give them exposure and resources to grow their companies.

Y Combinator has a strict application process where an expert team reviews all of the applications. The application process includes a technical evaluation, a business evaluation, and a team evaluation. Your application will be considered only if you, as the founder and the applicant, have at least 10% equity in your startup. 

All of the applications are then go through the YC Review Board, a group of experts that reviews the applications. Y Combinator is one of the top accelerators in the US.

Y Combinator invests 500k if your startup is fully accepted in their batch, in two phases and through two SAFEs (Simple Agreement for Future Equity).

2. TechStars Accelerator

Tech Stars is one of the best startup accelerators that is designed to provide start-ups with seed funding and mentorship to help them grow. TechStars has accelerated over 3500 startups to date and is the accelerator behind Uber, Twilio and DigitalOcean amongst others.

You can complete the TechStars application form on their website in two to five hours.

Tip: Before submitting your application, reach out to their mentors and advisors for extra help to make sure you’ve described your startup correctly.

An interview with TechStars will be scheduled after your application has been screened (this process normally takes four weeks).

You may be chosen by TechStars’ interviewing committee if you succeed in the interview rounds. The program manager, the managing director, and other mentors and corporate partners comprise this group. If you pass this stage successfully, you’ll be part of a three-month batch of startups at TechStars.

The program offers start-ups equity and resources to help them succeed. The program is designed to be collaborative and give a variety of resources to the businesses it works with.

Tech Stars offers several programs across the country. The programs offer a variety of funding options and can help you grow your business.

In return for 6% equity, TechStars offers $20,000 in investments. However, every startup that is accepted into TechStars also receives a $100,000 convertible note.

3. 500 Startups Accelerator

500 Startups, as one of the best startup accelerators in the US, is an accelerator devoted to accelerating growth for early stage companies. 500 Startups is another prominent incubator/accelerator organization. It has funded over 2700 companies, including Udemy, Talkdesk, and Canva.

If you find a suitable program on their website, You can apply via their website or AngelList. After completing the application form, you may be invited for an interview day. You should allocate three hours for the interview process (three back-to-back interviews with their investment team), but it may be shorter.

500 Startups offer every company that joins their programs $150,000 investment in return for a 6% equity stake. If you are accepted, the fast-paced program lasts for four months and is presently at the location you applied.

The program helps entrepreneurs build successful companies and allows them to leverage the 500 Startups network.

The program offers seed funding and mentorship to help entrepreneurs get their companies off the ground. The program has funding options for both equity and convertible debt options. The program is one of the top accelerators in the US.

4. Plug and Play Tech Center

Plug and Play, as one of the best startup accelerators in the US, is a private-public partnership that invests in technology-focused companies.

They have helped over 1360 startups get to market since their foundation year, 2006. Portfolio companies include Dropbox, CourseHero, and LendingClub.

Plug and Play invests between $50,000 and $250,000 in pre-seed to series A startups. You may also obtain up to $1,000,000 in subsequent investments from Plug and Play directly. These investments typically receive between 1% and 5% of the company, however, the percentage is not fixed.

You can apply for the startup accelerator offered by this company here via an online form. You will be contacted if you qualify after your application is reviewed by their Ventures Team.

One of the program’s goals is to scale the number of high-growth tech companies.

The program is designed to provide start-ups with resources, funding, and exposure to help them grow. The program is one of the top accelerators in the US.

5. Innovation Works Accelerator

Innovation Works is an acceleration program based in Boston that works with entrepreneurs in the life sciences, clean energy, and engineering sectors.

They’ve helped over 530 startup companies as part of their portfolio including successful cases such as RE2 Robotics, Cognition Therapeutics and Nowait (acquired by Yelp).

You can apply via their contact form to be considered for this as one of the best startup accelerators. Depending on your commercialization plans, required funding, and runway needs, Innovation Works can provide up to $150,000 in investment in the form of a convertible note.

The program works with start-ups to help them scale their businesses and have successful exits. The program offers access to mentors, experts, and alums, as well as weekly programs led by industry veterans, workspace, and investment opportunities.

The program also helps founders with resources to help their business grow. The program is one of the top accelerators in the US.

Final Words: Which Accelerators Can Help You?

There are a variety of best startup accelerators you can apply to to help you get your company off the ground. Depending on your stage and what resources you need, you can choose which one is right for you.

The first thing to do is to look at what stage your company is in. If you are just getting off the ground, you will likely need more mentorship, more funding, and more guidance than what an accelerator provides.

However, once you reach a certain stage in your company development, you will be at a point where you need more exposure and resources. This is when you should consider applying to an accelerator program.

Once you understand what stage your company is at, you will be better equipped to make a decision about which program is best for you. As mentioned, different accelerators specialize in different verticals so it is important to check their websites carefully what programs they offer.