Category: Accelerators

I previously wrote that accelerator documents should be easy. At the time, I focused on adverse selection: the more difficult the terms or onboarding process (including the investment documents), the more likely the best startups would choose a different accelerator or decide not to join at all. As the accelerator ecosystem has evolved, and after…

Accelerators can certainly help a startup reach new levels. But if the relationship between the startup’s co-founders is already on shaky ground when they enter, the only thing the accelerator (through no fault of its own) may accelerate is a co-founder divorce…and possibly the death of the startup. The Co-Founder Divorce Problem In a co-founder…

If you have been to accelerator demo days, you have probably seen a pitch that mentions a financing round in progress, or the details of a proposed round. In the last several years, some accelerators have worried that demo day presentations could be viewed as a general solicitation for purposes of Rule 502(c) of Regulation…

Documents in the startup ecosystem evolve. For example, convertible note documents are more complex now compared to 5 years ago (e.g., price caps and price cap regulators). Most of the evolution has to do with real-world experiences of investors and startups. Other times complexity can be chalked up to “deal over-engineering.” Some accelerators are guilty of…

Working to close a small seed round prior to your accelerator’s pitch day usually falls somewhere between a moderate distraction and a huge pain in the asymptote. It’s not worth the effort to close during this time period, especially if the seed round is for a very small amount. While seed round angel investors (those close to the…