Startup accelerators are programs that provide startups with mentorship, office space, and often some form of funding in exchange for equity in the company. They’re designed to expedite the growth of startups during their earliest stages, hence the name “accelerator.” Now, let’s take a closer look at how they make money, especially as it pertains to accelerators in Ireland. Equity Stake: The primary way accelerators make money is by taking an equity stake in the companies they help. This typically ranges from 5% to 10%, but it can vary based on the accelerator and the specific agreement with the startup. The accelerator then makes money when these companies are successful and either get acquired or go public. The accelerator would then sell its shares at a profit. Program Fees: Some accelerators charge a fee to the startups that participate in their program. This fee might cover the cost of mentorship, office space, and other resources provided by the accelerator. Sponsorship and Partnerships: Many accelerators partner with larger corporations or other organizations that provide sponsorship money or resources. These partnerships can be a significant source of income for accelerators. Public Funding: In some cases, accelerators may receive funding from public sources such as government grants or initiatives designed to stimulate economic growth and innovation. Events and Workshops: Accelerators often host events, workshops, or other educational programs that they charge admission for. These can be another source of income. It’s important to remember that not all accelerators are the same. Some may rely more heavily on one revenue source than others. For instance, some accelerators may not charge a program fee but take a larger equity stake in the companies they accelerate. *Contacting Furthr is a great resource for finding accelerators in Ireland, and it provides some insights into operations as well. It’s also worth noting that while accelerators do aim to make money, many of them also have a broader goal of fostering innovation and supporting entrepreneurs. The revenue they generate often goes back into the accelerator, allowing them to provide more resources and support to future startups.