Accel launches pre-seed funding program called Accel Atmos
At a Glance
Accel, an early and growth-stage venture capital firm, has launched Accel Atmos, a pre-seed investment program. Accel Atoms will give one-on-one mentorship, a break from regular startup programs’ one-to-many coaching.
Accel, an early and growth-stage venture capital firm, has announced the launch of Accel Atmos, the VC firm’s pre-seed funding program. The fund will invest $250,000 in uncapped convertible companies.
Accel Atoms is part of the $550 million sixth Accel fund. Accel Atoms will give one-on-one mentorship through this program, breaking away from the usual one-to-many mentoring seen in standard startup programs.
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. 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 personalized attention for the startup.Prayank Swaroop, a partner at Accel,
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.Prayank Swaroop, a partner at Accel,
The fund aims to invest in businesses in the areas of direct-to-consumer brands, fintech, consumer apps, B2B marketplaces, insurtech, crypto, blockchain, cybersecurity, SaaS, open-source, developer tools, healthtech, and so on.
Since it’s difficult to agree on the correct valuation at the time of investment, this funding mechanism supports extremely early or pre-seed startups.
When a startup raises capital, they raise through an equity investor, who gets a certain stake in the companyPrayank Swaroop, a partner at Accel,
For example, if an investor pays $1 million for a 10% ownership in your company, the company is valued at $10 million. On the other hand, Convertibles are a type of startup investment in which the business’s valuation is determined at a later date.
We can join any funding round of a startup. For example, if a startup is planning to raise $500,000 from angels, we can be part of that $500,000, or we are ok to add $250,000 to the $500,000 round and make it $750,000. We don’t change the terms of their $500,000 round. In fact, our investment will be $250,000.
Accel Atoms has invested in a few firms, but it expects the public debut to provide the majority of its admissions. It also intends to invest in Indian and Southeast Asian firms.
For operational simplicity, the team wants to undertake 100-day mentorship programs twice a year.
So if a startup applies before the launch of the mentoring program, they can be part of that program. Else, they will have to wait a couple of quarters to be part of the next mentoring program.Prayank Swaroop, a partner at Accel,
Accel Atoms focuses on early-stage startups. Even startups that do not yet have a product, customers, or income can apply to Accel Atmos.