While both accelerators and venture capitalists (VCs) play a crucial role in a startup's growth journey, they differ significantly in their function and engagement with the startup.
An accelerator typically works with early-stage startups, providing a structured, time-limited program that offers mentorship, education, and often a small amount of seed funding. The goal is to help startups rapidly grow and refine their business model over the course of a few months.
Venture capitalists, on the other hand, are usually involved in the later stages of a startup's lifecycle. They invest capital into a startup in exchange for equity, with the hope that the startup will eventually provide a high return on investment. VCs typically invest larger amounts than accelerators and can offer strategic advice, but they don't provide the same structured, intensive program of support as an accelerator.