Most accelerators pay for themselves by owning a small part of every company they back. An equity-free accelerator does not, so the first question to ask about one is who is paying, and what they want in return. The answer tells you what the programme is good for and what it will ask of you. This guide covers what equity-free means, the four kinds of backer behind these programmes, what founders give instead of shares, and how to compare an equity-free offer with one that takes a stake.
What equity-free means
Equity-free means the programme takes no shares in your company, now or later. That covers several different offers:
- Cash with no stake. A grant, award or stipend that you do not repay and that does not convert into shares.
- Credits and services. Cloud credits, software, legal or accounting help, lab time or space, valued in money but not paid in it.
- Support only. Mentoring, workshops, introductions and a cohort, with no money at all.
Many programmes combine the three. MIT delta v, the summer accelerator for MIT student founders, offers US$75,000 in equity-free funding, and says its partner perks are worth over US$200,000 per team (its own page, read on 18 October 2026, showing the 2026 cohort). Google for Startups Accelerator describes equity-free support for the length of the programme, with mentoring from Google teams and cloud credits subject to an eligibility review. Our Google for Startups Accelerator listing tracks its cohorts.
Two cautions. First, equity-free is not the same as free: some programmes charge a fee, and our guide to red flags in accelerator terms covers what to check. Second, read the documents for anything that behaves like equity later, such as a right to invest in your next round on special terms, or a share of a future sale. On this site a programme is marked equity-free only when it says it takes no equity; a grant with no stated equity terms shows “not published”.
Who pays for it
Every equity-free programme has a backer whose return is something other than shares. There are four common kinds.
- Universities. They fund programmes for their own students and researchers as part of teaching and research. MIT delta v is one; so are NYU Summer Launchpad and Penn State’s Summer Founders Program, each with a US$15,000 equity-free grant according to their listings. See our guide to university incubators.
- Companies. A corporate sponsor wants partners, customers, or startups built on its products. Google’s accelerator says it prefers startups working with technologies such as machine learning and AI, between seed and Series A. Comcast NBCUniversal LIFT Labs says no equity is required and offers pilots across the group, according to its listing. Our guide to corporate accelerators goes further.
- Non-profits with sponsors. MassChallenge says all its programmes take zero equity and that it does not charge an application fee; see our MassChallenge listing for its current cohorts. Creative Destruction Lab’s FAQ says it is a non-profit funded through partnerships and philanthropy and charges no fees.
- Governments. Public programmes support local companies or exports. German Accelerator runs fully funded, equity-free programmes for German startups entering foreign markets, and Ireland’s New Frontiers pays a €17,500 stipend in its full-time phase without taking equity, according to their listings.
Knowing the backer explains the programme’s shape. A university programme is built around students’ calendars, a corporate one around the sponsor’s business, and a government one around who qualifies as local.
What you give instead
No equity does not mean no cost. Equity-free programmes usually ask for some combination of these:
- Time. Creative Destruction Lab asks companies to send a founder to each of its five day-long sessions. MIT delta v wants founders to work on the company full-time and be in the market by the end of the summer. A programme’s time demands are part of its price.
- Eligibility. The backer decides who qualifies. MassChallenge’s early-stage programmes, for instance, are for startups that have raised less than US$1 million in equity funding and earn less than US$2 million a year in revenue, according to its programmes page.
- Access for the sponsor. Corporate programmes often expect a pilot, feedback on the sponsor’s products or a first look at a partnership. That can be valuable, but ask what the sponsor gets to see and whether any results belong to it.
- No guaranteed money. Creative Destruction Lab’s FAQ says there is no guaranteed investment, though mentors often invest in some of the companies. Many support-only programmes work like this: the introductions are the value, and investment is up to the investors.
- Conditions on cash. Grants and awards may limit what you spend the money on, require reports, or be paid in stages tied to milestones.
None of these is a reason to avoid a programme. They are the terms of the deal, and they should be written down before you start. If a programme cannot tell you what it expects in time, data or access, ask until it can.
Equity-free or equity: how to compare
When you have a choice between an equity-free programme and one that invests for a stake, compare the money first and the rest second.
The money comparison is mechanical. Suppose one programme offers US$150,000 for 7% and an equity-free programme offers US$75,000. The equity deal brings US$75,000 more now. Its price is 7% of whatever the company is worth when it is sold, less the dilution from later rounds. If later rounds halve that stake to 3.5%, the two offers break even at an exit of about US$2.14 million: below that the extra cash was the better deal, above it the equity was expensive. The equity or equity-free calculator runs this for your own numbers, with a table of exit values.
Then weigh what the money comparison leaves out. An investing accelerator may bring a demo day, a known name and investors who follow its companies; an equity-free programme may bring a customer, a lab or a grant you could not get otherwise. Ask what the last cohort of each went on to do.
You may not have to choose. Many founders take an equity-free programme first and an investing accelerator later, once the company is ready to raise. Before you sign the first one, check that it does not ask for exclusivity or a right of first refusal that would get in the way of the second. Browse equity-free options in the accelerators and grants and fellowships sections; each listing shows the equity the programme publishes.
Sources
Each page was read on the date shown. Figures in this guide carry the date the source gives them.
- Google: Google for Startups Accelerator. Undated page. Read 18 October 2026.
- MassChallenge: All programs. Undated page. Read 18 October 2026.
- Martin Trust Center for MIT Entrepreneurship: MIT delta v. Undated page, showing the 2026 cohort. Read 18 October 2026.
- Creative Destruction Lab: Frequently asked questions. Undated page. Read 18 October 2026.