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Startup Accelerators Aren’t Banking on Exits Any More

Accelerators are increasingly selling a range of services to generate ongoing revenue, without waiting years for startups to be sold.

Within only a decade, accelerators have become a mainstay of startup ecosystems in regions around the globe. Throughout this period, the accelerator business model has continued to evolve. Still in the Global Accelerator Report 2015, a majority of accelerators globally still indicated that they intended to follow the traditional “cash-for-equity” model, first established in 2005 by Y Combinator, which involves investing a small amount of seed money in a startup in exchange for equity. Investments typically are around $25,000 on average in exchange for between 5 percent and 10 percent equity.

Source: Startup Accelerators Aren’t Banking on Exits Any More