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GEC 2017: Genevieve Edens
- 1. 1 Startup Accelerators: Trends & Niches So… what are the data telling us? Genevieve Edens Aspen Network of Development Entrepreneurs
- 2. Trends in startup accelerators 2 0 10 20 30 40 50 60 70 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Interest in "startup accelerator" Source: Google Trends
- 3. It’s all relative… 3 0 10 20 30 40 50 60 70 80 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Interest in "startup accelerator" Interest in “business incubator" Source: Google Trends
- 4. 4
- 5. The Global Accelerator Learning Initiative 5 www.galidata.org
- 7. What is an accelerator? 7 420+ COHORT BASED PROGRAM PROGRAM IS TIME BOUND FEATURES AN INVESTOR EVENT 320 115 83 1-12 months
- 8. Global Accelerator Survey results 8 www.galidata.org
- 9. What is an accelerator? 9 ?❶ Smaller applicant pool ❷ Slower pace programs ❸ Less direct funding ❹ More grant revenue ❶Extremely selective ❷10 weeks ❸Seed fund
- 10. Do they work? 10
- 11. 11 7,000+ ventures from over 100 programs since 2013 Entrepreneurship Database Program
- 13. 13 Accelerator Program Accelerator Program Accelerator Program Consistent Application Questions Survey at Application
- 14. Annual Follow up Surveys 14 Baseline (application) 1 year 2 year 3 years Accepted Rejected
- 15. Do Accelerators Work? 15 Average change in revenue significantly higher for participated ventures Average change in equity raised significantly higher for participated ventures Average change in number of full time employees higher for participated ventures Jobs Created Equity Raised Revenue Growth *Preliminary* N=1759 ventures
- 16. Do accelerators work? Do some programs work better than others? Does program effectiveness depend on sector or geography? Does program effectiveness depend on types of entrepreneurs? How do specific program elements affect entrepreneur performance?
- 17. Thank you! 17
Editor's Notes
- This is my favorite kind of graph! One thing we do know, they are booming. Increasing interest in accelerators. More of them are emerging, more funding is going to them, and more entrepreneurs are seeking them out as a way to get to their next step faster. Of course, this graph is just relative. So as a frame of reference… Numbers represent search interest relative to the highest point on the chart for the given region and time. A value of 100 is the peak popularity for the term. A value of 50 means that the term is half as popular. Likewise a score of 0 means the term was less than 1% as popular as the peak.
- Ouch. OK, it’s a new thing. It started less than 10 years ago, and incubators have been around supporting entrepreneurs for decades. See in which location your term was most popular during the specified time frame. Values are calculated on a scale from 0 to 100, where 100 is the location with the most popularity as a fraction of total searches in that location, a value of 50 indicates a location which is half as popular, and a value of 0 indicates a location where the term was less than 1% as popular as the peak. Note: A higher value means a higher proportion of all queries, not a higher absolute query count. So a tiny country where 80% of the queries are for "bananas" will get twice the score of a giant country where only 40% of the queries are for "bananas".
- Accelerators at this point might be a shiny new toy – one that people see in it what they want. Some see them as a way to efficiently make seed investments. Some see accelerators as a way to improve the entrepreneurial ecosystem. Others are anchoring them around specific sectors or social problems.
- GALI exists to understand the impact of accelerators. I’m going to be talking about data collected through this project.
- This is a big question… but an important one. We need to break it down. Raise your hand if you are an entrepreneur who is going through, or has been through, an accelerator program. Raise your hand If you work for an accelerator program – or other program that is training entrepreneurs. And rasie your hand if you are funder who has invested in such programs, or an investor who has partnered with these programs. Stay standing if you know, without a shadow of a doubt – that they program you’re part is providing the best possible support to the entrepreneurs that are part of it – and you have the data to prove it.
- There are studies out there that have defined what an accelerator is, but they’ve all been based on the US and Europe. We thought that the model might change outside those contexts, and we didn’t want to be too restrictive. So we started by looking at a list of over 400 organizations that we thought might run accelerators, and tested for 3 criteria. We found 320 that matched at least one, and sent them a brief survey. 115 answered the survey, and from there we determined 2 criteria. To understand what an accelerator is, we didn’t want to
- First, what is an accelerator? North America 95 Europe & Central Asia 64 Latin America & Caribbean 59 South Asia 22 Sub-Saharan Africa 19 East Asia & Pacific 17 Middle East & North Africa 9
- Let’s go back to the original accelerator program… here is how GALI helps incubators and accelerators measure their impact For each of the programs we work with we ask that they integrate a set of questions into their application process. This question set is designed to replace some of the questions that you currently ask. The questions in this question set are the ones that can be statistically compared – for example, “how many employees do you have”, and “how much revenue did you receive in the last year” – questions like that. These questions have been developed in collaboration with our partner accelerator programs, and have been rigorously tested. Over 4000 entrepreneurs have applied to nearly 90 programs around the world, using these questions. They can be easily integrated into your existing online platform, or can be hosted by our partners at Emory. The key here is that to take part in this program, all entrepreneurs who apply to your program must fill out this question set – it must be integrated into your application process, and only entrepreneurs who complete it are considered “fully applied”.
- We not only track the ventures you supported, but also the ones that applied but didn’t get accepted. And we survey them on basic information (revenues, employment, investment raised) every six months. (Emphasize this point) - Our response rates are close to 100% for accepted ventures, and nearly 50% for rejected ventures. To encourage participation in our program, each entrepreneur who agrees to share their data with our program is entered into a draw to win unrestricted grants for their ventures. Currently, we distribute four of these $US 5,000 grants every six months.
- So, to effectively answer the question, do incubators and accelerators work, we need to look at a series of questions…