Startup Accelerators are growing so fast in the last ten years in the whole world, with a growth rate of up to 20% (Joh Bhakdi), in USA the number of accelerators increased an average of 50 percent each year between 2008 and 2014 (Ian Hathaway).
“There are just too many incubators and accelerators and some of them will merge or disappear. Only the best will survive.” –Martin Ihrig
Last week I just received the 2017 Accelerator Report created by the Global Accelerator Network, which we are part of.
These are my takeaways from the report:
- More of the accelerators have been created by entrepreneurs, followed by private investors, non-profit organizations, corporations, government and at the end: universities.
- Accelerators with more than three years have two different locations.
- The USA startup ecosystem is more intensive in capital compared with accelerators outside of US. Startups at USA accelerators are more focused on looking for seed round than Non-USA accelerator companies, almost third part of the alumni in Non-USA are not raising a round yet, in USA that number almost 10%.
- Traction makes a difference to be accepted at an accelerator, starting with an MVP or prototype followed by paying and active users.
- Even when social media and startup platforms like f6s, angel list and fundacity are the number one source of deal flow, the best candidates come by recommendation of mentors, alumni and investors.
- Change, the industry is moving so fast, and the accelerators are flexible institutions that can move to the next step easily compared with other companies. Half of the accelerators are thinking on verticalization (even us at Orion Startups), later stage companies and more funding.
“The best [accelerator] programs have a substantial impact. The worst programs can probably cause damage.”–Dave McClure