The accelerator terms companion: every clause, in plain English

Every accelerator terms summary is answering two questions: what do you get, and what do you give. The clauses just spread those answers across a page of jargon. This guide walks a terms summary top to bottom, in the order the clauses usually appear, and links each one to its glossary entry. The goal is that the next terms page you read, here or anywhere else, holds no surprises.

How to read a terms summary top to bottom

Most summaries follow the same order. First the money: how much cash, through what instrument, for what stake. Then the conversion mechanics: cap, discount, and any special clauses that change the deal later. Then the program: how long, how big the cohort, what you must show up for. Read in that order and total each side as you go. The money terms decide what the program costs you. The program terms decide whether it is worth it.

A useful habit is to restate the whole deal in one sentence before you react to any single clause. For example, from published terms: BOOST, run by Suffolk Technologies, invests 150,000 dollars through a post-money SAFE for 4.5 percent ownership, in a roughly eight-week program. That one sentence carries most of what the next two sections unpack.

The equity clauses

Instrument. The vehicle the money arrives in. A SAFEiA Simple Agreement for Future Equity: money now that converts into shares later, not a loan. converts into shares at a later priced round. A convertible noteiA loan that is expected to convert into shares later rather than be repaid in cash, often with a cap and discount. is similar but is debt, with interest and a maturity date. Some programs buy common stockiBasic ownership shares, usually what founders and employees hold, junior to preferred stock. directly, and some blend approaches. AlphaLab Health, for example, publishes an investment of up to 100,000 dollars through an uncapped SAFE plus 3 percent in common equity. mHUB invests 100,000 dollars via SAFE for 6.5 percent. The instrument controls when your dilution becomes real, so identify it first.

Valuation cap. The valuation capiThe highest company value used to price a SAFE when it converts, which protects the investor. is the highest company value used to price a SAFE's conversion. Lower cap, more shares for the investor, more dilution for you. A post-moneyiThe company's value right after an investment lands, equal to pre-money plus the amount invested. SAFE fixes the investor's percentage at signing, which makes the outcome easier to predict.

Discount. The discountiA percentage off the next round's share price, given to earlier SAFE investors. gives the converting investor a percentage off the next round's share price. Caps and discounts usually apply whichever gives the investor more shares.

MFN. An MFN clauseiMost Favored Nation: lets an earlier investor upgrade to the best terms you later give anyone else. lets the holder adopt better terms you later give someone else on a similar instrument. Techstars' standard deal is the best-known example: a 200,000 dollar uncapped post-money SAFE with MFN, alongside 20,000 dollars for 5 percent of common. Uncapped today does not mean uncapped forever. The conversion math, including a worked MFN example, is in how accelerator SAFEs work.

Pro rata. Pro rataiThe right to invest again later to keep your ownership percentage from shrinking. rights let the investor buy more in later rounds to maintain their percentage. Standard, but worth knowing it exists before your next lead investor asks who holds it.

For what the resulting percentage actually costs in dollars, read what 5 percent common stock actually costs.

The program clauses

Length. Programs range from a sprint to a residency. BOOST runs about eight weeks. mHUB's accelerator runs about six months. Neither is better in the abstract; the question is what your company needs time for.

Cohort. CohortiA group of startups that go through an accelerator program together at the same time. size shapes how much attention you get. BOOST's cohorts have averaged roughly six to eight companies, and mHUB publishes eight to ten. Small cohorts usually mean more partner time per company.

Obligations. What you must actually do: relocate, attend in person, hit reporting milestones. BOOST, for instance, is primarily virtual with two mandatory in-person events. mHUB runs in person in Chicago. Obligations are a real cost, priced in founder time.

Demo day. The demo dayiThe event near the end of a program where startups present to investors and partners. clause tells you how the program ends and who is in the room. Treat it as a milestone, not a payoff.

Follow-on. Follow-oniMore money an investor may put in after the first check, usually in a later round. language describes whether the program or its backers can invest again later. Published follow-on behavior is one of the strongest signals of how a program's incentives are aligned with yours.

Here are the two programs used as examples above, with their published terms:

Red flags versus normal

Normal, in published US accelerator deals: a SAFE or convertible instrument, an equity stake in the low-to-high single digits for a cash-plus-program package, post-money structure, MFN on an uncapped SAFE, pro rata rights, a demo day, and defined in-person obligations.

Worth a second read: a program fee charged on top of an equity stake, exclusivity or rights of first refusal over your future fundraising, board seats at the accelerator stage, IP assignments or licenses of any kind, and terms that are simply not published anywhere. Unpublished is not automatically bad, but it moves the burden of diligence onto you.

Every published program page on Atlas carries these same fields as structured data, so you can compare instruments, stakes, and obligations side by side instead of rereading prose. If you want all of it at once, the full dataset is available as a one-time purchase.

FAQ

Do all accelerators use the same instrument?

No. Published deals in our dataset include post-money SAFEs, uncapped SAFEs paired with common stock, convertible equity agreements, and direct equity purchases. The instrument changes when dilution lands, so never assume one program's structure from another's.

What if a program does not publish its terms?

Ask before you invest time in applying, and get the answer in writing. Plenty of reputable programs simply have not published; our pages mark how each figure was verified so you can tell published terms from unknowns.

Is a bigger check for more equity automatically a worse deal?

No. A larger stake can be fair if the cash and the program are proportionally larger. Compare packages, not single clauses, and run the dollar math from what 5 percent common stock actually costs on each offer.

This is general education, not legal or investment advice. Read the actual documents and talk to a lawyer before you sign.