Free calculator

Accelerator ROI calculator: what the equity costs, and what it has to return

Seven percent for $125k is a valuation under $2M. Whether that is a good deal depends on what the program does to your next round. Enter the terms and your expected seed, and see the break-even uplift.

The program pays for itself
+$1.46M
Founder value at the seed round with the program ($9.46M, including the cash and perks received) versus without ($8.00M). The deal breaks even if the program lifts your seed valuation by at least 5.3%. The program values you at $1.79M today; angels at $5.00M would take 2.4% for the same cash instead of 7.0%.
Implied valuation of the deal
$1.79M
$125k for 7.0%
Break-even uplift
5.3%
Seed valuation lift that makes it worth it
Equity cost at seed
$700k
What the program’s stake is worth then
The honest variable is the uplift: network, signal and speed. Ask three alumni what their seed round looked like before you put a number on it. Perks count only if you would have paid for them.
Create your free profileNothing is stored. The math runs in your browser.

How to value the deal

Cash divided by equity gives the implied valuation: $125k for 7 percent is about $1.8M post-money. A program is worth it if it raises your next valuation, or the probability of raising at all, by more than the equity cost. The calculator expresses that as the uplift the program has to deliver.

What accelerators actually provide

A network of investors on demo day, a cohort of peers, structure and deadlines, credibility with first customers and investors, and perks worth real money such as cloud credits and software. The value is highest for first-time founders without a network and lowest for repeat founders with revenue.

The break-even uplift

If you could raise a $5M seed without the program, a 7 percent program breaks even only if it lifts your seed valuation by roughly the equity cost. The output shows the exact percentage; compare it with what alumni of that program actually raised.

Alternatives

Angels at a $4M to $6M cap, pre-seed funds, grants, and non-equity programs run by corporates or universities. The accelerator directory lists what each program takes and gives.

Questions founders ask

Which programs give the most?

YC’s standard deal is the reference point; check each program’s current terms on its website, they change every year.

Do perks count as cash?

Only the ones you would actually use. $100k of cloud credits is worth $100k only if your bill is that high.

What about non-equity programs?

Enter zero equity. The output shows the value of the cash and perks alone.

Stop guessing which investors fit. Let them find you.

Founder Starter is free: your profile goes in front of investors on SeedScope and they can email you. Founder Pro shows who viewed and watchlisted you, by name, and lets you email your matched investors. Founder Premium picks 20 new best-fit investors every week and writes your first email to each one.