Venture capital firm Accel has announced a change in the focus of its accelerator program, Atoms. After completing two sector-agnostic cohorts, the program is pivoting towards thematic cohorts starting with Artificial Intelligence (AI) and Industry 5.0. This change is intended to provide start-ups with more targeted resources and mentorship to help them succeed in these rapidly evolving sectors.
Another significant change is that the program, which provided select startups with $250,000 of pre-seed capital in the form of “uncapped convertible bonds,” will primarily offer equity investments of up to $500,000. It’s been a long time since I’ve been in the middle of a long time
“One very big change from last year is that we decided to make equity investments, not just convertible bonds with no cap. It felt like they weren’t taking it seriously and that Accel was doing an option value check, we talked to the founders and the majority of them had no problem owning the stock at all. Instead, they felt it would bring seriousness from our side. That’s why we plan to invest in and take equity stakes in these companies,” said Prayank Swaroop, partner at Accel. says.
Accel partner Barath Shankar Subramanian, who leads the Industry 5.0 program, said in an interview with Business Today that the restructuring is aimed at providing startups with personalized learning and real-time feedback. By grouping companies by theme, he said, the program can engage sector-specific mentors and provide more targeted resources to address industry-specific challenges.
At Industry 5.0, Subramanian said the program will focus on software companies looking to redefine how traditional industries such as manufacturing and oil & gas use technology, as well as seek markets within the sector. said to apply.
Swaroop, who heads the AI program, said Atoms will recognize companies that are innovatively using AI in business applications and building development tools for the AI ecosystem. In the past, Accel has invested in AI companies such as Spyne.ai, DubDub, Mihup, Effectiv, Scale.ai and Akridata.
According to the partners, Atoms is federated, allowing any interested partner within Accel to get an Atoms program up and running. This move opens up opportunities for Accel to run multiple programs simultaneously, potentially expanding the scope and impact of the accelerator.
Each cohort contains 3-5 startups. Applications will open by the end of his May, and finalists will be announced by his November. Investments are made during this time.
In two cohorts, Atoms has invested in 24 startups ranging from SaaS, B2B marketplaces, Web3, D2C, hardware, health & wellness to hardware and e-commerce. Since joining the Atoms program, these startups have raised over $160 million in additional funding, with Accel either leading or participating in subsequent rounds.
