What is a Business Accelerator?

Are you an early-stage business looking to grow?

If so, a Business Accelerator could provide the support and resources you need to succeed.

In this article, we explain:

• what a Business Accelerator is
• the types of training, support, and services their programmes provide.

What is a Business Accelerator?

A Business Accelerator is a programme that supports early-stage and start-up businesses through investment, short-term mentoring, workspace, and training to fast-track their growth.

A Business Accelerator’s long-term goals are to:

• help the businesses it supports to grow and become profitable quickly.
• make a return on its investment (ROI).

Some non-profit or government-run Business Accelerators may focus less on ROI and more on social or regional development goals, such as creating jobs or fostering innovation.

How long do Business Accelerator programmes last?

Business Accelerator programmes generally run for a fixed period in the UK – typically three to six months.

Some accelerators may also offer shorter or more flexible programmes, depending on the specific focus or industry, including support for up to 12 months.

During the programme, businesses can refine their strategies, further develop their products or services, and build their entrepreneurial skills through workshops and discussions with mentors.

What services do Business Accelerators offer to businesses?

Business Accelerator programmes provide small or new businesses with several services to help expedite their growth and profitability.

Core services typically include:

• potential investment
• exposure to investors
• the use of co-working spaces.

However, they can provide many other services too, including the following.

• support from mentors, other programme participants, and the Accelerator’s wider network 
• the opportunity to develop your skills by working alongside businesses at a similar stage of development and under the guidance of experienced business professionals
• exposure to potential customers and investors
• Intensive learning over a short period. Accelerators cram a lot of learning into a relatively short space of time, giving access to ideas and opportunities that could otherwise take years to acquire.

How much do Business Accelerators invest?

The amount of equity investment on offer can vary significantly between different Business Accelerators.

That’s why you should do your research.

Many Accelerator programmes take an equity stake in the companies they support so they can also benefit from the future success of the businesses.

If you’re interested in applying to join a Business Accelerator programme, make sure you’re comfortable with:

• how much investment is being offered
• the equity share you’d be expected to part with.

Remember, though, Business Accelerators offer non-financial benefits, which may significantly contribute to your business’s growth.

Not all Accelerators take equity.

Some, such as those run by universities or government bodies, may offer non-dilutive support, meaning they provide resources without taking ownership.

What training and support do Business Accelerators provide?

Different Business Accelerators offer slightly different support and training opportunities.

However, they tend to follow a similar format and structure.

In addition to providing equity investment, Accelerators often offer a dedicated workspace where entrepreneurs can operate and collaborate as they participate in the programme.

This helps to foster a collaborative attitude, encouraging connections and learning opportunities.

Experienced mentors are a staple of Business Accelerator programmes.

They provide one-on-one guidance, offer constructive feedback, and share their experiences to help entrepreneurs navigate their growth journey.

Accelerators also often give start-up founders access to their extensive network of contacts, including potential investors, industry leaders, successful entrepreneurs, and programme alumni.

These connections can prove invaluable in opening doors for new business opportunities and partnerships, enhancing a smaller business’s visibility in the market.

What’s the difference between a Business Incubator and an Accelerator?

Business Incubators and Accelerators are both support structures that help new businesses grow and succeed.

However, they cater to different stages of a business’s lifecycle and operate in unique ways.

A Business Incubator is designed for very early-stage or ‘seed’ businesses.

It typically provides start-ups with office space, business mentoring, training, and, less commonly, funding.

The focus is typically on nurturing a business idea and helping it grow at its own pace by providing continual support, often over several months to a few years.

Various organisations run incubators, including universities, government entities, and large corporations.

An Accelerator, on the other hand, is designed to ‘accelerate’ the growth of existing but still relatively young businesses.

Accelerators achieve this through an intensive, fixed-term programme, usually lasting a few months, which includes mentorship, educational workshops, and access to a network of potential investors.

Some accelerators might offer shorter or longer programmes depending on their specific focus and structure.

At the end of the programme, businesses often present their progress in a public pitch event.

Accelerator programmes often require a small equity stake in return for their support.

Is a Business Accelerator right for my business?

Business Accelerators can significantly boost young businesses. 

Yet despite the valuable services Business Accelerators offer, not every participating business will thrive.

Much depends on the nature of your business, its goals, and the Accelerator programme itself.

Joining an Accelerator can be a game-changer for your business, so it’s worth considering the pros and cons of doing so.

Advantages of Business Accelerators

• access to mentorship – Accelerators provide access to experienced mentors who can offer valuable business advice, guidance, and feedback
• networking opportunities – these programmes attract like-minded entrepreneurs, giving you the chance to build relationships and learn from peers, and also provide access to a network of investors and alumni
• structured growth – the intensive and structured nature of the programme can help you achieve rapid growth and development within a short timeframe
• investment – many Accelerators provide investment in exchange for equity, which helps your business overcome early financial challenges.

Disadvantages of Business Accelerators

• equity stake – Accelerators often require an equity stake in your business in return for their support and investment, so you may need to decide if you’re comfortable giving up a portion of your ownership
• high-paced environment – the fast-paced and intensive nature of Accelerator programmes can be overwhelming and might not suit every entrepreneur or business model
• limited focus – Accelerators often focus on specific sectors or types of businesses, usually targeting high-growth industries such as FinTech.
• time investment – participating in an Accelerator programme can be time-consuming, often requiring a full-time commitment.

What types of Business Accelerator programmes are available in the UK?

In the UK, Business Accelerators range from privately run schemes to government-funded programmes to corporate-backed schemes.

Many Accelerators, particularly those with private backing, accept all businesses regardless of sector and region.

However, some specialise in and focus on specific areas.

For example, some Accelerators specialise in tech start-ups, providing tailored mentorship and resources to foster innovation in the technology sector.

Corporate-backed Accelerators often look for young companies that align with their business interests or that offer a strategic advantage, contributing to broader corporate goals.

Government-backed accelerators typically target businesses that align with broader policy objectives.

This might include new businesses supporting social impact, innovation, or working towards regional development.

When selecting a Business Accelerator, it’s important to research your options and make sure you apply to a programme that’s right for you.

Business Accelerators

There are many Business Accelerators programmes available for specific sectors, industries and regions.

Here are some to consider:

Barclays Accelerator

Run by Barclays Bank, this programme is for UK FinTech businesses. 

Powered by Techstars and located in London, it provides businesses with access to two different networks, Barclays technology, co-working spaces and expert mentorship over an intense 13 weeks.

NatWest Accelerator

A free programme offering one-to-one coaching, mentorship, networking opportunities, and access to co-working spaces across the UK.

True

True focuses on investing in and supporting retail and consumer startups, including B2C (business-to-consumer) and B2B (business-to-business) models. 

It provides mentorship, seed funding, office space, and investor connections.

Ignite

Based in Newcastle, Ignite focuses on early-stage tech startups and provides funding, access to tech, workshops, and mentoring from experienced entrepreneurs.

The Accelerator Network

Offering three different business accelerator programmes alongside a professional broking resource, this organisation covers many industries across the UK.

PwC Scale Programmes

PwC Scale 10-week programmes help businesses grow with access to its resources, connections, and insights. 

It charges a fixed fee rather than taking equity in your business.

SETsquared

Delivered through university partners, this Business Accelerator supports technology start-ups with high growth potential.

Grow London Global

Grow London Global is a free 12-month programme open to innovative tech companies who want to expand internationally.