Startup Accelerators (US) Participation Fee : No
Accelerator asking for fees to participate in their program. Is it a red flag? Maybe or may be not.
Is it market? No, its not.
NO
There seems to be different perspectives around Accelerators charging startups a participation fee. There are some good arguments from both sides.
- LinkedIn Post (and Thread) by Hsu Ken Ooi
- Be wary if you come across an accelerator program that has a fee associated with it. In our experience, paid accelerators are typically low-quality, a scam preying on first-time founders, or both. - theceostrategy.com
- Accelerators that charge you a monthly fee? - Reddit
But looking that some of the top accelerators (available here in a separate post) with the exception of 500 Global (below), accelerators don't charge a 'cash' fee. (Some Antler programs outside the US currently is or has charged a 'platform fee'.)
We charge $37,500 to participate, but the fees can be deducted from our investment.- 500.co
So, if you get an accepted in a accelerator and you see a "fee". It may or may not be worth it - and its for you to decide. But know that its' not market in the US in the top accelerators.
Also, important to note that the "fees" may not be even be called out as fees. Could be hidden in plain sight disguised as "additional % of equity for service (e.g Advisor) provided by Accelerator".