Accel Announces Atoms, A Pre-Seed Funding Programme For Early-Stage Startups
- ByAyushi Ray | August 30, 2021
Global venture capital firm Accel announces Atoms, a pre-seed funding programme for early-stage startups. Speaking on the development, Prayank Swaroop, Partner at Accel, said, “Basically, we do not take any stake in the company in this round, but the startup gets the money now. And this $250,000 will convert into equity in the next round valuation of the startup.” Accel Atoms is part of the sixth Accel fund, which is $550 million. Through this programme, Accel Atoms will provide one-to-one mentoring, breaking away from the traditional one-to-many mentoring of regular startup programmes. Accel Atoms is part of the sixth Accel fund, which is $550 million.Through this programme, Accel Atoms will provide one-to-one mentoring, breaking away from the traditional one-to-many mentoring of regular startup programmes. “We believe that finding five to 10 high-quality mentors, who at any point of time work with only one to two startups and spend two to three hours per month with the startup, is a far better model to get personalised attention for the startup,” Prayank said.
He added, “By joining Accel Atoms, the startup becomes part of the Accel family. They get all the power and access to what any other Accel portfolio gets — support of our investment teams, our venture development teams, access to 200+ founders of Accel portfolio, and access to 1000+ experts from our Accel network.” Explaining funding through uncapped convertible, Prayank said, “When a startup raises capital, they raise through an equity investor, who gets a certain stake in the company.” For example, if an investor takes a 10 percent stake in your company for $1 million, the company’s valuation is $10 million. On the other hand, convertibles are a way of investing in startups, where the valuation of the startup is decided at a future date. This funding instrument helps very early or pre-seed startups since it’s difficult to agree on the right valuation of the startup at the time of investment.
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