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Are Startup Accelerators Worth It? Here’s How Helpful They Are In Getting Funding

A look at the fundraising success of the 10 most active accelerator programs in the US.

The following is a guest post by Samir Kaji (@samirkaji), Managing Director at First Republic Bank (@firstrepublic). 

Given the relatively small amount of capital needed to start a company within the technology sector today, we have experienced a wave of companies launched by freshman founders. Coinciding with this increase of novice founders has been the exponential growth in the number of global accelerators seeking to support these founding teams during the early stages of formation.

Most accelerators offer cohort-based structures, such as mentorship, and a network, and often a small capital investment in exchange for equity. As most accelerators take meaningful ownership stake in a company, typically 5% to 7% percent, the cost of joining an accelerator can be high.

A key driver for determining whether to join a program should be how helpful the accelerator is in making a company “fundable.” Testing this by assessing the fundraising success of companies in a given accelerator.

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