MassChallenge is a no-equity startup accelerator. Its objectives are to promote innovation, collaboration and commercialization, address the seed-stage investment gap, empower novice entrepreneurs and provide educational opportunities for entrepreneurs.

As a nonprofit, MassChallenge does not take any equity in the companies or place any restrictions on the entrepreneurs. The organization's funding comes primarily from sponsorships from large corporations including Fidelity Investments, Verizon, Oracle, AmericanAirlines and Microsoft, and from the Commonwealth of Massachusetts.