Description
Preccelerator Program is an accelerator for early-stage technology startups that was historically offered out of the Stubbs Alderton & Markiles, LLP offices in Santa Monica, California. It aimed to help founders grow from business concept toward funded, scalable startup by combining capital support, strategic resources, and mentorship.
Specific Program / Funding Stage
Early-Stage / Seed Preparation (Core Focus)
- The program was designed for very early-stage companies — typically those still shaping business models, building MVPs, and preparing for seed rounds.
- Participation spanned ~6 months per term, which positioned it more like a traditional accelerator than a short bootcamp pre-accelerator.
Investment Amount and Equity (Company-Level)
Capital / Benefits Provided
- The program routinely offered:
-
$25,000 credit toward transactional legal services.
- Access to office space, co-working infrastructure, mentors, curriculum, and investor introductions.
- Over $500,000 in partner perks (credits for AWS, HubSpot, Google Cloud, etc.).
Equity / Ownership Taken
- In exchange for participating benefits — including legal credits, mentorship, workspace, and perks — Preccelerator required a warrant for equity equal to ~2.5% of the company’s fully diluted shares at a nominal strike price (e.g., $100). This warrant was non-dilutable up to the earlier of a $1 M capital raise or two years after issuance.
Equity / Funding Structure
- Rather than a straight investment for equity like some accelerators, the program used a warrant instrument — a right to purchase equity at favorable terms — tied to the value of the benefits provided.
- Because it involved legal, workspace, and mentoring benefits rather than direct cash investments in all cases, the warrant captured value back to the accelerator as opposed to a typical priced round.
Application / Submission Method
How to Apply
- Participating founders applied through an online application form on the Preccelerator website, which was reviewed by a selection committee.
- Accepted companies then participated in structured programming, mentoring sessions, and Demo Days with investors.
