What Does 500 Startups Do?
500 Startups works with early-stage technology startups, providing them with funding, training, and mentorship. The main areas of the accelerator's activities include:
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Investments in Startups
The accelerator provides seed funding to companies participating in its programs. Typically, startups receive investments ranging from $150,000 to $250,000 in exchange for an equity stake (usually 6%). These funds allow startups to develop their products, test the market, attract initial customers, and accelerate business growth. -
Intensive Acceleration Programs
The 500 Startups acceleration program lasts about four months and includes training, mentorship, and product development. Startups gain knowledge in areas such as marketing, business model development, fundraising, and preparing for market launch. -
Post-Acceleration Support
One of the unique features of 500 Startups is the continued support for startups after the program ends. This includes assistance in securing follow-on funding rounds, entering new markets, and establishing connections with potential partners and customers. -
Global Support and Acceleration
500 Startups actively collaborates with international startups and conducts acceleration programs worldwide. This enables startups from various countries and regions, including Asia, Europe, Latin America, and the Middle East, to access a global network of experts and investors. -
500 Global Venture Fund
Formerly known as 500 Startups, the 500 Global fund manages assets of over $1.8 billion and invests in startups around the world. The fund supports companies operating in sectors such as technology, healthcare, fintech, and artificial intelligence.
Key Programs of 500 Startups
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Acceleration Program
The main acceleration program of 500 Startups is conducted several times a year and is targeted at early-stage startups that wish to accelerate growth and prepare for follow-on fundraising. The program lasts four months and includes training, mentorship, and support in product development and marketing strategy.
- Funding and Participation Terms: Participants in the program receive funding of $150,000 in exchange for 6% equity in the company. As part of the program, startups also gain access to an extensive network of mentors and experts who help them achieve success.
- Mentorship and Training: Startups work with experienced entrepreneurs, investors, and specialists who assist them in building their business and avoiding common pitfalls.
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Growth Program
The Growth Program is designed for more mature startups that are in the scaling stage and seeking to accelerate growth. The program helps participants develop marketing strategies, improve sales, and prepare for larger funding rounds. The Growth Program is particularly beneficial for startups that already have a product in the market and aim to expand their presence in new regions.
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Seed Program
The Seed Program is aimed at startups in their earliest stages, just beginning to develop their product and explore the market. Under this program, companies receive support to conduct initial research, test their products, and craft their business model.
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Programs Worldwide
500 Startups conducts acceleration programs and events globally, including programs in Asia, Europe, Latin America, and the Middle East. This gives international startups the opportunity to grow, receive support, and attract investments while remaining in their region.
Examples of Successful Startups that Went Through 500 Startups
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Credit Karma
Credit Karma is a fintech company that provides users with free access to their credit reports and financial products. The startup went through the 500 Startups acceleration program, which helped it secure funding, enhance its product, and quickly scale its business. In 2020, Credit Karma was acquired by Intuit for $7.1 billion, marking one of the largest deals in the fintech market.
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Canva
Canva is a graphic design platform that allows users to create professional designs and content without requiring specialized knowledge. The company went through the 500 Startups program, which helped it develop its product and attract funding for further growth. Today, Canva is valued at over $40 billion and is one of the most successful technology companies in the world.
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Udemy
Udemy is an online learning platform that provides access to a wide range of courses in various disciplines. The startup underwent the 500 Startups acceleration program, which helped it develop its product and attract its first users. Today, Udemy is one of the largest educational platforms with millions of students worldwide.
Advantages of Participating in 500 Startups
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Global Network of Contacts and Partners
Participating in the 500 Startups program provides access to an international network of experts, mentors, investors, and partners, allowing startups to grow faster, expand into new markets, and discover new collaboration opportunities.
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Intensive Training and Mentorship Support
The acceleration program includes intensive training and mentorship, helping startups improve their business models, accelerate development, and avoid common mistakes.
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Post-Acceleration Support
Unlike many other accelerators, 500 Startups continues to assist startups even after the program ends, providing support in securing follow-on funding rounds, scaling the business, and establishing connections.
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Early Stage Funding
Participation in the program allows startups to receive initial funding necessary for product development, attracting first customers, and entering the market.
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Focus on International Markets
500 Startups actively works with international startups, making it an ideal choice for companies looking to enter global markets and attract international investments.
500 Startups is one of the leading accelerators and venture funds that helps startups worldwide accelerate their development and attract investments. Through its acceleration programs, global network of experts, and post-program support, 500 Startups provides startups with all the necessary resources for successful growth. Examples of companies like Credit Karma, Canva, and Udemy illustrate how participation in 500 Startups can lead to impressive outcomes and significant business growth.
