The financial investment is, dependent on the type of entity, provided in the form of a grant or a loan (e.g., a governmental or university incubator) or through equity (e.g., a corporate or private accelerator), often in the form of a SAFE (Simple Agreement for Future Equity) note.
Some of these aspects come together in their investor-events (or ‘demo-days’). This is of great value for the founders and truly ‘accelerates’ the development and growth of their startup, especially for first-time founders.
In these programs, being amongst people who are encountering similar struggles in the hectic life of an entrepreneur can not only create awareness that you are not alone, but also create a peer-to-peer learning environment that benefits all. This establishes a community feeling, another important feature of incubators and accelerators.
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