What is a Business Accelerator?
A business accelerator is best understood by comparing it to an incubator. While an incubator largely works with new and very young companies which have an idea that needs further development, an accelerator is appropriate for companies that have existing traction and are looking for guidance in growth and expansion, or a very close to taking their product/service to market. A company that is appropriate for an accelerator already has a developed idea and is seeking guidance and assistance (including funding) to move quickly into expanding their market or are very close to taking their idea to market. Accelerators are generally much more short-term programs meant to help a company go from walking to running.
Our Business Accelerator Program requires MCA and/or Project Evaluation Committee Approval.
It is typical for an accelerator program to take a nominal ownership interest in the company that will be working with, this usually ranges from a 5 to 10% equity stake in the business. We will waive most of the consulting and other fees for companies accepted into this program (however, companies will be required to pay any external costs or fees). As such, we will be very selective on companies that it will accept into its Accelerator program.
Companies selected will have a written Plan of Action established along with the agreement between Petrini and Workman and the company. We will assign an MCA who will act as an adviser to the business and a liaison between the company and any services, both internal and external, set forth in the Plan of Action.
The Accelerator Program will generally last for 90 days, though the exact length of time of service will be set for the written Plan of Action.
Petrini & Workman’s Fee Structure for Accelerator Program
As stated above, the fee for service of our Accelerator Program is usually an equity position (5 – 10%) in the company in addition to any external expenses incurred on behalf of the business in executing the established and agreed upon Plan of Action. This equity position can be augmented by payment for Petrini and Workman’s consulting services, paid at an hourly rate of $120.00 per hour, with the approval of Petrini & Workman.