5 Things to Check Before You Join Accelerators: The Accelerator Due Diligence Checklist
Your startup accelerator might be a scam. Here’s how to tell before you waste 3 months and 20% equity.
Getting into an accelerator feels like validation. A brand-name program wants you. There’s momentum, FOMO, and the pressure to say yes quickly.
But here’s what most founders miss: accelerators are investors, and like any investment, the terms matter more than the logo.
I’ve watched brilliant founders lose months to programs that promised connections but delivered busywork. I’ve seen cap tables poisoned by governance rights that scared away Series A investors. And I’ve heard too many stories of “$500K programs” that turned out to be $50K now and $450K if you hit milestones nobody told you about upfront.
This is your pre-flight checklist. Five critical things to investigate before you commit three months of your startup’s life to any accelerator.
Key Points to be discussed in this post:
Part 1: Who Runs it: Partner behavior, culture, and red flags
Part 2: The Actual Money: Term sheets, funding timelines, and hidden conditions
Part 3: Ownership & Governance: Equity, board seats, and veto rights
Part 4: Network Access: Cohort quality, mentors, and investor connections
Part 5: Opportunity Cost: Time commitment, deliverables, and ROI
Part 1: Who Runs It (Partner Behavior and Incentives)
Partners set the culture. Their day-to-day behavior determines whether you get honest feedback or theater, whether they’re invested in your success or managing you like a portfolio line item.
What Good Partners Look Like
The best accelerator partners act like experienced co-founders. They challenge your assumptions, make targeted introductions, and get out of your way when you need to build.
What Bad Partners Look Like
The worst treat you like an employee. They micromanage product decisions, demand updates that serve their demo day narrative instead of your company, and use public shaming disguised as “tough feedback.”
How to Investigate Partner Quality
Talk to founders from different cohorts. Not the testimonials on the website, but people you find on LinkedIn, Twitter, or through your network.
Ask these specific questions:
“How often did you actually talk to partners? Was it helpful or performative?”
“Did they respect your decisions, or push their own agenda?”
“Were they available when you hit real problems, or only visible around demo day?”
“Walk me through a specific time a partner helped you. What did that look like?”
Press for specifics. If you hear consistent patterns of partners overstepping, dictating product roadmaps, hiring decisions, or pivots, that’s a cultural issue, not a one-off.
Red Flag Scenario: The Controlling Partner
Imagine joining a well-known European accelerator and three weeks in, a partner publicly criticizes your pricing model in front of the cohort, then follows up with a Slack message saying, “Let’s hop on a call to fix your strategy.”
The call turns into a lecture about copying a competitor’s model. The partner’s incentive is looking good at demo day, not building a sustainable business.
Warning signs to watch for:
Public shaming or aggressive feedback sessions that humiliate rather than educate
“Hot seat” sessions designed to break founders down rather than build them up
Stories of partners taking over product decisions or treating founders like employees
Check partner backgrounds. Have they built companies, invested in companies or they are employees of accelerator? There’s a meaningful difference between someone who’s navigated 0-to-1 and someone who’s only seen it from the HR perspective.
Part 2: The Actual Money (Timing, Conditions, and Real Capital)
Accelerators market themselves with big numbers.
“We invest $500K in every company!”
Sounds incredible until you read the fine print and discover $50K is upfront, $100K is conditional on hitting metrics you don’t control, and $350K is “pro rata follow-on rights” that may or may not materialize.
Promised capital that doesn’t arrive on time can kill your company. If you’re planning your runway around that money and it gets delayed or becomes contingent on approvals, you’re suddenly in survival mode instead of building.
Ask for the Actual Term Sheet
Not a summary. Not a pitch deck. The actual legal document.
What to look for in the term sheet:
Upfront investment amount: Exact dollars wired at program start, no conditions
Conditional tranches: Any amounts tied to milestones, IC approval, or demo day performance
Follow-on rights versus obligations: Pro rata is an option for them, not a guarantee for you
Disbursement timeline: Specific dates, not vague phrases like “after program completion” or “upon successful graduation”
The Critical Questions About Money
Ask the accelerator directly:
“How many companies from the last cohort received the full advertised amount?”
“How many got it upfront versus over 12-18 months conditional on performance?”
“What’s the exact wiring date for the initial investment?”
“Are there any conditions or approvals required after we’re accepted?”
If they dodge these questions or provide vague answers, that’s your signal.
Warning: It’s an Audition, Not an Investment
If an accelerator says “we’ll decide after you complete the program,” that’s not an investment. It’s an audition.
Common scenario you need to avoid:
You join an accelerator advertising “$500K for every company.” The actual breakdown turns out to be $125K upfront, $125K after hitting $50K MRR, and $250K follow-on at the accelerator’s discretion.
You grind for six months and hit the MRR target, but the follow-on never comes because the accelerator’s fund was oversubscribed or their investment thesis changed.
Red Flags About Funding Terms
Run if you hear or see:
Vague language like “upon successful completion” or “subject to investment committee approval”
No term sheet available until after demo day
Refusal to show you terms before you commit
“Milestone-based” funding with no clear definition of milestones
IC approval required for funds already “committed” to you
When you spot vague language, dig deeper:
Who’s on the investment committee?
What are the specific approval criteria?
How long does the approval process take?
What percentage of companies get approved versus rejected?
These questions separate real commitments from aspirational promises.
Part 3: Ownership and Governance (Who Sits on Your Cap Table)
Giving up equity is expected. Giving up control is not.
Early governance rights can haunt you for years. They can block future fundraises, scare off institutional VCs, or force you into decisions that serve the accelerator’s portfolio strategy instead of your company’s needs.
The best accelerators take 5-7% equity, offer standard terms, and stay out of your governance. The worst take 10-25%, demand board seats, and insert veto rights over hiring, fundraising, or acquisition decisions.
Understanding Standard Equity Ranges
5-7% equity: Standard for good programs with clean terms
8-10% equity: Acceptable if strong capital and hands-on support included
15% or more: Better come with serious capital, dedicated partner time, and transformative support
Anything above 15% without proportional capital and support is a red flag.
Board Seats vs. Observer Rights
Board seat: Gives the accelerator voting power over major decisions. They can block acquisitions, fundraises, and key hires. High risk for seed-stage companies.
Observer right: Allows them to attend meetings without voting. Far less intrusive and standard for most quality accelerators.
If an early-stage accelerator demands a board seat, they better have an exceptional reason. Most don’t.
Get the Pro Forma Cap Table
Ask for a pro forma cap table showing what your ownership looks like after a typical Seed round and Series A.
What you’re checking for:
Anti-dilution provisions: Do they get protection that accelerates your dilution?
Participation in future rounds: Can they participate without putting in new capital?
Drag-along rights: Can they force you to sell the company against your will?
Veto rights: Can they block an acquisition offer or future fundraise?
These terms might seem abstract now, but they have concrete consequences when you’re trying to close your Series A.
Worst Case: When Governance Kills Your Deal
The scenario that actually happens:
You build a hardware startup and join an accelerator that takes 20% equity and a board seat.
Two years later, you grind your way to product-market fit and get a term sheet from a top-tier VC. The terms are excellent. Your team is excited. The future looks bright.
Then the accelerator refuses to approve the deal. Why? Because it would dilute their ownership below a threshold that triggers a penalty in their fund’s LPA (limited partner agreement).
The VC walks. The deal falls apart. Your momentum dies. Six months later, you shut down.
This isn’t theoretical. These governance rights have real, company-killing consequences when your startup starts gaining traction.
The Nuclear Red Flags
Immediately walk away if you see:
Broad veto rights over hiring, fundraising, or product decisions
Accelerator demanding board seat plus 15-25% equity
Language allowing the accelerator to “assign” founders or hire executives without consent
Vague terms around “management changes” or “operational improvements”
Drag-along rights that let them force a sale
If you see any of these terms, get a lawyer to review the agreement before you sign anything.
Part 4: Cohort Quality and Network Access
Accelerators sell “the network,” but networks aren’t created equal.
A roster of 50 mentors means nothing if they’re name-only advisors who never take meetings. A cohort of 20 startups is only valuable if they’re building in complementary markets and can actually help each other.
The real value comes from concrete, relevant introductions to customers, investors, and operators who’ve solved the problems you’re facing. If the accelerator can’t show a track record of this, the “network” is just marketing.
Audit the Cohort Composition
A good cohort has:
Different markets and industries
Complementary skill sets
Relevant expertise you can learn from
Founders at similar stages
A bad cohort has:
Three vertical SaaS companies targeting the same ICP
Everyone competing for the same investor introductions
Founders fighting for the same customer pilots
No domain expertise relevant to your business
That competitive dynamic creates a negative-sum environment where you’re fighting for scarce resources rather than collaborating.
Verify Real Mentor Engagement
Look up the mentors on LinkedIn. Are they actively involved (posting about the accelerator, attending events, engaging with founders) or just listed on the website as decoration?
Ask alumni these specific questions:
“How many mentors did you actually meet with during the program?”
“Which mentor meetings were most valuable, and why?”
“Did mentors make introductions that led to customers or investors?”
“Would you describe the mentor access as deep or shallow?”
The Mentor Mirage
Imagine joining an accelerator with an impressive mentor list. CEOs of unicorns, top-tier VCs, operators from FAANG companies. The roster looks incredible.
Three months later, you’ve met with exactly two mentors. One is a junior BD person at a bank with no real decision-making authority. The other is a recently retired executive with no active network and outdated advice.
The “access” was a mirage. The unicorn CEOs never showed up. The VCs were name-only. The FAANG operators were too busy.
If the accelerator lists “200+ mentors” but can’t point to specific, recent examples of mentors who helped portfolio companies close deals or solve problems, those mentors are decorative.
Verify Investor Connections
Get specific about investor introductions and outcomes:
“How many companies from the last cohort raised follow-on funding?”
“Which investors did they raise from?”
“Were those investors introduced by the accelerator, or did founders find them independently?”
“What percentage of your portfolio successfully raises a Seed or Series A within 12 months of graduating?”
These questions reveal whether the accelerator actually has meaningful investor relationships or if founders are on their own after demo day.
Test the Network’s Depth
Watch for networks that are only internal. Some accelerators over-index on their own brand and under-invest in real ecosystem connections. They connect you to other portfolio companies or internal partners, but provide no meaningful external access.
The test is simple: Can the accelerator name specific investors who wrote checks to portfolio companies? Can they name specific customers who became paying users because of accelerator introductions? Can they name specific hires who joined companies because of their network?
If the answers are vague or they deflect to talking about “ecosystem value,” the network is probably shallow.
Part 5: Program Value vs. Opportunity Cost
Three months is a long time when you’re pre-product-market fit.
Every week spent in mandatory sessions, office hours, and demo day prep is a week not spent talking to customers, shipping product, or closing revenue.
The best accelerators are high-signal, low-noise. They give you access to the right people at the right time, then get out of your way.
The worst are high-commitment, low-value, with mandatory sessions that have little relevance to your stage or market.
Demand Specific Deliverables
What will the accelerator actually do for you?
If they promise customer introductions:
How many introductions?
In which specific industries?
To decision-makers or gatekeepers?
If they mention investor meetings:
With whom specifically?
At what stage (pre-seed, seed, Series A)?
How many warm introductions guaranteed?
If they offer legal, financial, or PR support:
Is it in-house expertise?
Referrals to partners?
How many hours included?
“We’ll introduce you to the right people” is not a deliverable.
“We’ll make 10 introductions to target customers in your ICP and 5 warm introductions to Seed investors” is a deliverable.
Calculate the Time Tax
Understand the real time commitment:
How many hours per week are mandatory?
How many hours are “strongly encouraged”?
Are there required office hours, workshops, or check-ins?
Can you work remotely, or must you relocate?
What happens if you miss mandatory sessions?
If you’re required to move to a specific city for three months, there should be a tangible reason. Daily access to target customers. In-person meetings with relevant investors. Hands-on mentor support that requires physical presence.
If the reason is just “culture” or “cohort bonding” or “we’ve always done it this way,” think hard about whether that’s worth the disruption to your business and life.
The Access Illusion
Consider this scenario: You join an accelerator promising “unparalleled investor access.”
The deliverable turns out to be a single optional group session where a VC gives a generic 30-minute talk about fundraising fundamentals. No one-on-ones. No warm introductions. No follow-through. No actual meetings with investors who might write checks.
You could’ve gotten the same value from a YouTube video or podcast.
This gap between promise and reality is extremely common. That’s why you need specifics in writing before you commit.
Check for Follow-On Commitment
Ask about follow-on reserve capital:
Does the accelerator have a dedicated fund for follow-on investments?
How much do they typically invest in follow-on rounds?
What are the specific criteria for receiving follow-on support?
What percentage of companies receive follow-on investment?
Is follow-on investment guaranteed, or at the partners’ discretion?
This matters because accelerators with meaningful follow-on reserves are more incentivized to help you succeed beyond demo day. They have skin in the game for your long-term success, not just your demo day performance.
Watch for Hidden Constraints
Some programs include clauses that limit IP ownership, hiring practices, or even geographic expansion.
Read the fine print for:
IP ownership restrictions or licensing requirements
Approval required for key hires or co-founder changes
Geographic restrictions on where you can operate
Non-compete clauses affecting future ventures
Requirements to use specific service providers
These clauses are rare, but they exist. If you see any of them, negotiate them out immediately or walk away.
How to Actually Execute This Due Diligence
The mechanics matter as much as the questions. Here’s your step-by-step process.
Step 1: Build Your Comparison Spreadsheet
Create a spreadsheet listing every accelerator you’re considering. Add columns for each of the five categories above. Fill in specific data points for each program.
This forces you to move beyond vibes and brand names. You’ll compare actual terms, real commitment levels, and concrete deliverables side by side.
Step 2: Talk to Real Alumni
Find founders who’ve been through the program, but not the ones the accelerator introduces you to. Search LinkedIn for “[Accelerator Name] alumni” or find them through your network on Twitter.
Cold DM them. Most founders are generous with their time, especially if you’re transparent about evaluating the program.
What to ask:
“What was your day-to-day experience actually like?”
“Which partners did you work with most?”
“Which investor introductions led to actual meetings or term sheets?”
“What percentage of your time was spent on mandatory activities versus building?”
“If you could do it over, would you join again? Why or why not?”
Step 3: Request Documents Upfront
Before you commit to anything, request:
The actual term sheet
A sample or pro forma cap table
A list of the last cohort’s companies with their fundraising outcomes
The program schedule showing mandatory versus optional activities
If the accelerator refuses to provide these documents or delays significantly, that’s signal in itself. Programs with nothing to hide are usually happy to share this information because their track record speaks for itself.
Step 4: Trust Patterns, Not One-Offs
One negative story could be an outlier or a personality clash. Three consistent stories about the same issue (partners overstepping, vague funding terms, shallow mentor access) is a pattern you should take seriously.
Weight recent feedback more heavily than stories from three years ago. Programs evolve, partners turn over, and fund structures change.
Step 5: Run the Opportunity Cost Math
Do the actual calculation:
If the accelerator takes 7% equity, gives you $150K, and requires 12 full-time weeks, you’re trading $150K for roughly 10% of your first year (accounting for both equity and time).
Compare that to your alternatives:
Could you raise $150K from angels and keep that 7% equity?
Could you use those 12 weeks to get to revenue and raise on better terms?
Could you join a different program with better terms?
Could you grind on your own and move faster?
Sometimes the accelerator is the right answer. But only if the deliverables are concrete, the terms are clean, and the opportunity cost makes sense.
Accelerators can be transformative when they’re the right fit for your stage, market, and needs. But the brand name on the website matters far less than the actual terms, the quality of the people, and the relevance of the support.
Too many founders treat accelerator acceptance as the finish line when it should be the starting line for negotiation.
Do your homework. Ask hard questions. Get specifics in writing.
If an accelerator rushes you, pressures you, or refuses to answer basic questions about their terms, take that as your answer.
The best programs want informed founders who understand what they’re signing up for. Why? Because informed founders make better use of the program and build better companies.
You’re not lucky to be there. They’re lucky to have you.
Act accordingly.