The venture funding models, and how they differ
From accelerators to corporate and state-backed funds, each model carries its own advantages and costs. A comparison for founders.
Choosing an investor matters as much as choosing an amount. Each model carries a different incentive and a different time horizon.
Accelerator
A small amount of capital for a small share, alongside an intensive programme and a network. Right for a team whose product is not yet settled.
Independent venture fund
A five to seven year horizon and an expectation of a multiple return. The most demanding in assessment, and usually the most professional afterwards.
Corporate venture capital
Brings the parent company's market access and infrastructure, but may narrow your freedom to choose customers.
- Accelerator: speed and network
- Independent fund: capital and discipline
- Corporate: market and infrastructure
- State-backed: a low cost of capital, a longer process
