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Accelerators and the Regional Supply of Venture Capital Investment

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Abstract

Recent years have seen the rapid emergence of a new type of program aimed at seeding startup companies. These programs, often referred to as accelerators, differ from previously known seed-stage institutions such as incubators and angel groups. While proliferation of such accelerators is evident, evidence on efficacy and role of these programs is scant. Nonetheless, local governments and founders of such programs often cite the motivation for their establishment and funding as the desire to transform their local economies through the establishment of a startup technology cluster in their region. In this paper, we attempt to assess the impact that such programs can have on the entrepreneurial ecosystem of the regions in which they are established, by exploring the effects of accelerators on the availability and provision of seed and early stage venture capital funding in the local region.

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... One aspect of the problem is that most accelerators are small organizations with little structured data tracking, thus there is a general absence of large-scale representative data sets covering the programmes. (Fehder & Hochberg, 2014) The result is that "[r]esearchers have little visibility into program features, the identity of the companies that enter and exit the programs, or the population of startups that apply to such programs but are not admitted." (Ibid., p.9) Another problem is the short-term nature of accelerators' programs focused on the earliest stages of startup development. ...
... (Hoffman & Radojevich-Kelley, 2012) has remained largely the same: maximizing occupancy of the shared office by offering discounted rent and professional services." (p.10) Fehder & Hochberg (2014) agree: "Incubators are primarily real estate ventures, offering startup co-working space at reduced rent." (p.8) Tenant's residence time varies from 1 to 5 years, mostly because the survival of the incubator depends on the survival of the tenants. ...
... These include seed investment, value-added mentorship and advice, co-working/co-location with other startup ventures, introduction and exposure to capital, network building, opportunity to pitch to multiple investors, and friendship with other companies. (Caley & Kula, 2013;Fehder & Hochberg, 2014) The value of co-working/co-locating peer startup ventures is a particular result of accelerators; thus, "by spending time in the same building or meeting 7 "Founders identified the fact that once accepted onto a programme you've been vetted by a group of successful founders and investors as a major benefit, whether with journalists, investors or potential clients. It helps to be able to say that you've been selected as a 'promising startup' by an accelerator programme. ...
Thesis
The aim of this thesis is to cast light on the subject of its main research proposition, namely, the apparent trend towards a growing diffusion of an entrepreneurship culture and learning in society. It does so by dealing in considerable detail with the recent evolution and characteristics of startup accelerators, pre-accelerators, and other form of entrepreneurship support activities, including, an educationally-oriented inclusive entrepreneurship accelerator. For the sake of completeness, the research goes back in time to the historical origins of entrepreneurial programs in the form of the incubator around the late-1950. The chosen methodology of the study applies a mix of exploratory and descriptive research, with some element of quantification, mostly due to the recentness of the phenomenon and the rather unstructured condition of existing knowledge. This is reflected in the structure of the thesis that combines an extensive review of literature with the empirical research of three case studies of leading accelerators in three European countries (France, Israel and Italy), in addition to the case of the more recent experience of an educationally-oriented inclusive entrepreneurship accelerator, also in Italy. The overall combination generates, on the one hand, an overview of developments happening in the field under research and, on the other, an in-depth knowledge of how this is happening empirically in specific cases. Among other aspects, this helps reveal: (i) why and how the realm of entrepreneurship support structures has changed markedly in recent years, leading to a notable expansion of new entrepreneurship programs and instruments in society; (ii) the variety of new programs’ mechanisms, learning approaches, business models, and their evolution in the face of sustainability challenges; and (iii) the challenges and conditions facilitating and/or blocking the development of accelerators. The results of the overall approach is reflected in the structure of the thesis in two Parts, the first, following the Introduction and including two chapters: Methodology and Review of Literature and, the second, containing six chapters with the four case studies, their comparative analysis and, also, the concluding chapter. The argument confirms the main proposition of the thesis, namely, the existence of a trend towards a growing diffusion on an entrepreneurship culture and learning in society. The results may be useful for countries and regions facing increasing demand for entrepreneurial capacity to respond better to the entrepreneurial challenges of a complex and rapidly evolving society.
... From a policy perspective, it is important to measure the effects of the accelerators on the overall ecosystemin this case the cyber ecosystem -rather than just the small number of companies that attended accelerators since investments in these programmes would have a broader impact and multiplier effect on the region. These were what Hochberg et al. (2015) referred to as 'ecosystem effects'. Fehder and Hochberg (2015) measured the impact of start-up accelerator formation on the VC financing activity in a metropolitan statistical area (MSA) region. ...
... These were what Hochberg et al. (2015) referred to as 'ecosystem effects'. Fehder and Hochberg (2015) measured the impact of start-up accelerator formation on the VC financing activity in a metropolitan statistical area (MSA) region. Accelerators are important because they lower the search costs for both start-up entrepreneurs and investors by acting as aggregators and providing a matching service. ...
Article
Full-text available
The role of incubators and accelerators in driving cyber security growth and adoption in the UK by providing innovation support mechanisms.
... The first accelerator, Y Combinator, was established in 2005 in Silicon Valley to offer seed capital and three months of intensive training to selected startups in return for a minor equity stake in them (Fehder and Hochberg, 2015). The next accelerator, Tech Star, was established in 2007, and soon after, accelerators became widespread all over the world. ...
... A key impact measure used in many studies has been the increased chance of access to investors for future capital (e.g. Fehder and Hochberg, 2015;Hallen, Bingham and Cohen, 2016). While future capital is inarguably essential for any startup, other effects in overcoming startup's challenges must also be considered. ...
Thesis
Full-text available
Mobile platforms offer an opportunity for creating and distributing apps through app stores. Many developers, in the form of startups, have joined these platforms with economic motivations. However, they face several challenges on the way to creating a business. Firstly, the startup nature of the businesses implies a scarcity of financial resources and a dearth of business experience in developing and selling apps. Secondly, the popularity of the platforms has resulted in fierce competition among apps, hence difficulty in bringing an app to the attention of users. Thirdly, the startups are compelled to operate within the app store structures under the market-making rules of the platform owner. Finally, the contextual factors related to the type of an app may create additional difficulties. For example, game developers must cope with the heterogeneity of users' expectations, users' reluctance to wait for a game to be fixed in the case of problems, and the mainstream freemium monetization model which makes revenue-making more complex. This dissertation explains how early-stage mobile game startups operate in order to succeed. It uses the qualitative classic Grounded Theory Methodology for both analyzing and theory building. The data is collected through semi-structured interviews with 20 international game startups that were participating in a business accelerator – founded by a platform-owner – in Finland. The main research question asks 'What are the dynamics of success for early-stage mobile game startups?' The two more specific research questions ask how startups utilize the facilities of an accelerator, and how they excel in the market after publishing their games. The theoretical contributions of the dissertation are threefold. Firstly, it contributes to the literature on the role of the platform owner in the activities of startups. It discusses the role of the accelerator as a social boundary resource in improving the capabilities of startups in terms of game design, access to resources, and improved market activities, as well as providing an opportunity for the startups to impact the platform owner's decisions and to access resources from other members of the ecosystem. Secondly, it contributes to the literature on experimentation in software startups by explaining how mobile game startups follow an experimentation approach and use game analytics to discover areas of improvement and new potential markets. Thirdly, the developed theoretical model of 'dynamics of success for early-stage mobile game startups' explains that by utilizing the accelerator's facilities and taking an experimentation approach, startups aimed to iteratively raise game quality, visibility and user engagement in the pursuit of initial success for future expansion to other platforms. Moreover, the findings provide practical implications for mobile game developers, platform owners and business accelerators.
... The studies within this research orientation focus on the macro-and meso-level roles of accelerators, building on the literatures of regional innovation systems (Cooke, Uranga, & Etxebarria, 1997) and entrepreneurial ecosystems (Acs, Autio, & Szerb, 2014). They explore the processes that these intermediaries undertake to link entrepreneurs with entrepreneurial environmental resources (Goswami et al., 2018), the impact that they have on the regional entrepreneurial ecosystems in which they are established (Fehder and Hochberg, 2014;Goswami et al., 2018), and the role of (different types of) accelerators in the venture creation pipeline of the regional entrepreneurial ecosystem (Yang et al., 2018), the entrepreneurship education landscape for students (Wright, Siegel, & Mustar, 2017), or the network of innovation-supporting intermediaries of a science commercialization ecosystem (Clayton et al., 2018). ...
... Studies stemming from the research orientation of entrepreneurial ecosystems have mostly considered the accelerator's system acceleration purpose. They argue that the accelerator aims to speed up the commercialization of science at the system level (Clayton et al., 2018), attract VC funding to the local region (Fehder & Hochberg, 2014), grow a regional network of graduates and mentors, and stimulate more entrepreneurship-focused government policies (Goswami et al., 2018). Some of these studies have also linked venture development acceleration to system acceleration by arguing that speeding up the cycle of the ventureleading to quicker growth or quicker failure 11and creating ecosystem commitment amongst the participating ventures accelerates the development of the ecosystem (Goswami et al., 2018). ...
... The studies within this research orientation focus on the macro-and meso-level roles of accelerators, building on the literatures of regional innovation systems (Cooke, Uranga, & Etxebarria, 1997) and entrepreneurial ecosystems (Acs, Autio, & Szerb, 2014). They explore the processes that these intermediaries undertake to link entrepreneurs with entrepreneurial environmental resources (Goswami et al., 2018), the impact that they have on the regional entrepreneurial ecosystems in which they are established (Fehder and Hochberg, 2014;Goswami et al., 2018), and the role of (different types of) accelerators in the venture creation pipeline of the regional entrepreneurial ecosystem (Yang et al., 2018), the entrepreneurship education landscape for students (Wright, Siegel, & Mustar, 2017), or the network of innovation-supporting intermediaries of a science commercialization ecosystem (Clayton et al., 2018). ...
... Studies stemming from the research orientation of entrepreneurial ecosystems have mostly considered the accelerator's system acceleration purpose. They argue that the accelerator aims to speed up the commercialization of science at the system level (Clayton et al., 2018), attract VC funding to the local region (Fehder & Hochberg, 2014), grow a regional network of graduates and mentors, and stimulate more entrepreneurship-focused government policies (Goswami et al., 2018). Some of these studies have also linked venture development acceleration to system acceleration by arguing that speeding up the cycle of the ventureleading to quicker growth or quicker failure 11and creating ecosystem commitment amongst the participating ventures accelerates the development of the ecosystem (Goswami et al., 2018). ...
Conference Paper
Full-text available
While the widespread phenomenon of the business or seed accelerator has enjoyed increasing attention amongst scholars, the lack of a coherent and theoretically grounded understanding of this new organizational form constrains the cumulativeness and transferability of findings. By drawing on a systematic literature review, we identify four distinct research orientations on the accelerator: organizational learning and adaptation, entrepreneurial finance, entrepreneurial ecosystems, and corporate innovation and entrepreneurship. We compare and contrast these orientations along the organizational features that they attribute to the accelerator and synthesize them into an integrative typology. We further distinguish the accelerator from other established entrepreneurial support organizations and develop a research agenda that contributes to integration of the literature by building bridges between the different research orientations and linking the concept to established theories.
... However, it seems that location continues to matter. Second, we contribute to the strand of literature on incubators that has provided ambiguous findings on their impact on startup development (Hallen et al., 2014;Fehder and Hochberg, 2014;Lerner, 2009;Theodorakopoulos et al., 2014;Yu, 2017). Our results support the idea that specific incubators are an effective way of promoting fintech startups and their clusters. ...
... This result is due to the more frequent feedback given to entrepreneurs, who then can make better informed continuation decisions. Fehder and Hochberg (2014) found that accelerator programs help attract more early-stage capital, notably venture capital, and thus are a good mechanism for the regional development of entrepreneurial activities. In contrast, Lerner (2009) found that many 5 The notion of externalities has links to the one on network effects that are used to explain agglomerations and benefits that vary with the participation of more individuals and firms within the network. ...
Article
Full-text available
We study the formation and dynamics of entrepreneurial clusters in the emerging fintech industry. Using detailed data on the almost 1000 fintech startups in France to date, we find that most fintechs are geographically clustered and that the location of new fintech startups is affected, among other things, by the size of clusters and the presence of incubators. Larger clusters attract more new fintech startups, and incubators are shown to be an effective mechanism to attract new fintech startups. We further examine entrepreneurial exits of fintechs and find that being located in a larger cluster reduces the risk of failure but increases the likelihood of being acquired. Increased competition within a given segment of fintech increases failure rates. Moreover, the risk of failure is significantly lower for fintech startups that have been developed in an incubator.
... However, it seems that location continues to matter. Second, we contribute to the strand of literature on incubators that has provided ambiguous findings on their impact on startup developments (Hallen et al., 2014;Fehder and Hochberg, 2014;Lerner, 2009;Theodorakopoulos et al., 2014;Yu, 2017). Our results support the idea that specific incubators are an effective way of promoting fintech startups and their clusters. ...
... This is due to the more frequent feedback given to entrepreneurs, who then can make better informed continuation decisions. Fehder and Hochberg (2014) find that accelerator programs help attract more early-stage capital, notably venture capital and thus are a good mechanism for regional development of entrepreneurial activities. In contrast, Lerner (2009) has found that many of the state-supported programs did not have a meaningful impact in relation to the public resources allocated. ...
... For the investors (e.g., angel investors and venture capitalists), accelerators provide beneficial information to help reduce obstacles when seeking, sourcing, processing, and investing in a large number of startups (Hochberg, 2016). Accelerators act as deal sorters and deal aggregators by screening highpotential startups and gathering these startups in a single location, significantly reducing costs for investors to search for and sort out high-potential ventures (Fehder & Hochberg, 2014). Given the role of accelerators in conferring certification about the performance potential of startups, investors can benefit from the reduction in information asymmetry while entrepreneurs with certified ventures can increase their chance of receiving investment (Gonzalez-Uribe & Leatherbee, 2017). ...
... Given the role of accelerators in conferring certification about the performance potential of startups, investors can benefit from the reduction in information asymmetry while entrepreneurs with certified ventures can increase their chance of receiving investment (Gonzalez-Uribe & Leatherbee, 2017). As a result, accelerators can effectively increase the number of investments made into early-stage firms (Hochberg, 2016) as well as the number of active investors (Fehder and Hochberg, (2014), and help ventures grow their revenue at an increasing rate (Lasrado, Sivo, Ford, O'Neal, & Garibay, 2016). Altogether, the roles of accelerators in startup ecosystems serve as a driving force of job creation (Glaeser, Kerr, & Kerr, 2015) and economic growth (Gonzalez-Uribe & Leatherbee, 2017;Vergara, Bonilla, & Sepulveda, 2016). ...
Article
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This study examines the implications of reputational concerns on a startup accelerator’s decisions towards effort exertion in the venture assessment process and strategic adoption of information revelation policies. In our model, the startup accelerator charges an equity share of the venture admitted into her acceleration program in exchange for the resources provided to help nurture and prepare the venture for fundraising from the investor. The accelerator can choose how much effort to exert in the accelerating process, which in turn determines how accurately the accelerator can learn about the quality of the venture. At the end of the acceleration program, the accelerator can then decide whether to reveal this quality information to the investor consistently with (full disclosure regime) or contrastingly to (biased disclosure regime) what has actually been observed. The accelerator’s reputation will be negatively affected if the venture’s performance does not match with what the accelerator previously announced to the investor. Our findings show that the accelerator is motivated to exert a high level of effort in learning about the venture’s quality and fully disclose the credible quality information to the investor when the severity of the reputational loss is sufficiently high. Otherwise, if the impact of the reputational loss is too small, the accelerator would exert no effort in assessing the venture’s quality and announce information about the venture based primarily on the market information, which may or may not match with what she has actually observed during the acceleration program. Furthermore, we show that a larger equity share makes the accelerator more sensitive to the reputational loss, and hence, the accelerator is better incentivized to exert significant effort to improve the accuracy of the venture’s quality information and adopt the full disclosure regime.
... Introduced in 2005 in the US, the concept of accelerators has quickly spread all around the world. These accelerators operate either within a specific industry or are generalists (Fehder and Hochberg, 2015); can be independent or owned by different firms; and can have different goals including building an ecosystem for a company, matching startups with investors, or profiting from investments in startups (Pauwels, Clarysse, Wright and Van Hove, 2016). Typically, they recruit a cohort of startups and over a short period of time, provide them with intensive training, knowledge building packages, mentoring, and networking opportunities in order to facilitate and accelerate their growth (Cohen and Hochberg, 2014). ...
... A key impact measure used in many studies has been the increased chance of access to investors for future capital (e.g. Fehder and Hochberg, 2015;Hallen, Bingham and Cohen, 2016). While future capital is inarguably essential for any startup, they also need to learn how to overcome the liability of newness, how to scale up rapidly, and how to maintain a sustainable business (Xiaofeng et al., 2016;Giardino et al., 2014). ...
Conference Paper
Full-text available
This interpretive grounded theory study describes and analyses how early-stage mobile app developer startups utilize an accelerator’s facilities to develop and publish their game applications on a platform.The data was collected by interviewing 20 startups participating in an accelerator operated by a mobile platform-owner. Our model shows that the accelerator is affecting our early-stage startups in five areas of: their 1) market-related activities, 2) resources, 3) startup’s capabilities, 4) experimenting activities, and 5) game design activities. We discuss how the startups utilize the accelerator’s facilities to improve their capabilities and knowledge inside their firms which can affect their game design, access to resources, and improve their market-related activities. Furthermore, they make the accelerator into a social boundary resource through which they aim 1) to collaborate with and impact the platform decisions more effectively, and 2) to gain access to resources from other members of the ecosystem, in order to increase the chance of acquiring more users and building a reputation for entering other platforms. Our study enriches the existing literature in the areas of mobile application development and accelerators by shedding light on the game development activities of early-stage startups that have been selected to a platform-owned accelerator.
... Over recent years, entrepreneurship has become one of the most influential alternatives to economic growth. New institutional figures such as incubators and accelerators have emerged in the entrepreneurial ecosystem to develop mentoring programs, intensive training and tutor business ideas converted into projects that have culminated in a public pitch event or demo day for potential investors (Cohen, 2013;Fehder and Hochberg, 2015). Seed accelerators are organisations that aim to accelerate projects in their initial stages of development by providing training to previously selected projects (Miller and Bound, 2011). ...
This paper contributes to the literature on accelerators by filling the gap concerning the criteria used to select venture projects. Seed accelerators develop strict and rated assessment criteria for project selection that grants them objectivity and guarantees program success. This study uses a sample of 309 cases to analyse the criteria applied by an accelerator when selecting projects. Among these cases, 15 entered the accelerator stage. Our work first examines variables linked to the business project, such as the extent of innovation, extent of investability, speed of acceleration and extent of team consistency. It then assesses entrepreneurial skills such as negotiation, teamwork, creativity, communication and leadership. Our findings show that extent of team consistency and speed of acceleration are the most widely-used variables to assess a business project, while the most valued entrepreneurial skills are leadership followed by creativity. Furthermore, the project is more likely to enter the acceleration stage in the presence of higher team consistency and creativity.
... Many of these organizations do not run programs that have all three of the defining features of accelerators-that is, cohort-based models, time-bound programming, and investment facilitation-but still self-identify as accelerators due to the current hype surrounding the term. 31 Second, many accelerators are run by new organizations that are still working out their many kinks. Because of the well-documented liabilities of newness, many of these organizations run a few programs before folding or simply disappearing. ...
Chapter
To understand the work that accelerators are asked to do around the world, it is first necessary to understand the interplay between entrepreneurs and entrepreneurial ecosystems. When navigating the paths from promising ideas to successful companies, entrepreneurs rely on a host of individuals, organizations, and institutions to close various knowledge, network, and capital gaps. For certain entrepreneurs developing certain business ideas in certain places, the breadth and depth of the local ecosystems allow this to happen; not with absolute certainty, but with sufficient regularity to ensure a steady stream of new high-growth companies. Just think about the many white male entrepreneurs starting technology companies in Silicon Valley. For other entrepreneurs, like the founders of Togo’s first cashew processor or an Indian off-grid energy provider, these local ecosystems are much less robust. Therefore, a host of accelerators are setting up to target underserved and underestimated entrepreneurs who start impact-oriented ventures in these entrepreneurial dead spaces. We round out this chapter by using survey data collected by GALI researchers to explore this impressive global growth of accelerators. This sets the stage and provides context for the many observations that are presented throughout this book.
... A stakeholder is "any group or individual who can affect or is affected by the achievement of the organization's objectives" (Freeman, 1984: 46) and can be categorized into primary or secondarydepending on whether the stakeholder's participation is necessary or unnecessary for the survival of the focal organization (Clarkson, 1995) and internal or external-depending on whether the stakeholder is situated within or outside of the boundaries of the focal organization (Freeman, 1984). In this chapter, we focus on the primary stakeholders (Freeman, 1984), as other accelerator literature has looked at secondary stakeholders who indirectly influence or are influenced by the accelerator, such as the local region (Fehder & Hochberg, 2014) or the business ecosystem (Thomas, Sharapov & Autio, 2015;Sivonen, Borella, Thomas, & Sharapov, 2017). ...
Chapter
Full-text available
We provide a micro-perspective on business accelerator governance by identifying the accelerator’s primary stakeholders, classifying accelerators based on their sponsorship (i.e., corporate, private, public) and analysing the governance mechanisms for each of these types. We illustrate our conceptual framework by means of three empirical cases. Using the stakeholder perspective, this study furthers theoretical development of the accelerator.
... 1: Adapted from Emery and Flora (2006). 2: Fehder and Hochberg (2014); Hochberg (2015). ...
Article
This article develops a community entrepreneurship development (CED) framework and illustrates its use in a case study of the current and potential value of agriculture to the Barossa Valley in South Australia. The CED offers a framework for rural regional development that both practitioners and policymakers can use to develop and leverage entrepreneurial competencies and other forms of community capital to foster entrepreneurship at the community level. It assesses the potential for leveraging Emery and Flora’s [(2006). Spiraling-up: Mapping community transformation with community capitals framework. Community Development, 37(1), 19–35] community capital framework to build entrepreneurship and innovation. The findings suggest that the success of firm-level entrepreneurship is often dependent upon leveraging the rural region’s idiosyncratic natural capitals with human and social/entrepreneurial capitals to result in community-level entrepreneurial market development initiatives.
... explored the definition and domain of accelerators (e. g., Cohen 2013), the boundary between accelerators, incubators and equity investors (e. g., Cohen 2013;Hochberg 2016), and the different types of accelerators (e. g., Dempwolf, Auer, and D'Ippolito 2014;Pauwels et al. 2016). Research has also explored preliminary "acceleration effects" on cohort companies (e. g., Battistella et al. 2017;Hallen, Bingham, and Cohen 2014) and regional entrepreneurship ecosystems (e. g., Fehder and Hochberg 2014;Hochberg and Fehder 2015;Hochberg 2016). Table 1 provides a detailed overview of academic research on accelerators published in the last decade. ...
... explored the definition and domain of accelerators (e. g., Cohen 2013), the boundary between accelerators, incubators and equity investors (e. g., Cohen 2013;Hochberg 2016), and the different types of accelerators (e. g., Dempwolf, Auer, and D'Ippolito 2014;Pauwels et al. 2016). Research has also explored preliminary "acceleration effects" on cohort companies (e. g., Battistella et al. 2017;Hallen, Bingham, and Cohen 2014) and regional entrepreneurship ecosystems (e. g., Fehder and Hochberg 2014;Hochberg and Fehder 2015;Hochberg 2016). Table 1 provides a detailed overview of academic research on accelerators published in the last decade. ...
Article
Despite the emergence of startup accelerators as venture development organizations (VDOs) to high-growth firms, research has yet to identify where these accelerators fit into the venture development ecosystem. By clarifying and reviewing three different subsystems in the entrepreneurial ecosystem, our paper proposes that as an extension of the current incubation mechanism, accelerators contribute to the entrepreneurial ecosystem by transforming entrepreneurs and their ventures at early stages. Drawing upon the Pipeline model (Lichtenstein, G. A., and T. S. Lyons. 2006. “Managing the community's pipeline of entrepreneurs and enterprises: A new way of thinking about business assets.” Economic Development Quarterly 20 (4): 377–386.), we first plot where the accelerator model fits in the broader entrepreneurship ecosystem, and then demonstrate how different types of accelerators help participating entrepreneurs and their ventures progress along the venture development pipeline. Our theoretical approach contributes to both the entrepreneurship ecosystem and the accelerator literature and provides a practical map for both policymakers and early-stage entrepreneurs to manage and utilize their entrepreneurship ecosystem more effectively.
... They influence which start-ups receive funding, survive, and continue to grow and develop. Organizational sponsors-including venture accelerators, start-up incubators, boot camps, angel investors, and venture capitalists-play a crucial role in start-up selection (Fehder and Hochberg 2014;Cohen et al. 2018Cohen et al. , 2019. In weak institutional environments-such as those in many developing economies-these sponsors can fill critical institutional voids and enable new firm development (Dutt et al. 2016). ...
... The second literature stream empirically assesses the impact of business accelerator programs. This literature stream is also divided into two main sub-streams: the first analyzes the impact of accelerators on ecosystems (Fehder and Hochberg, 2014;Frimodig and Torkkeli, 2017;Hochberg, 2016), whereas the second attempts to study the impact of accelerator programs on accelerated startups (Battistella et al., 2017;Hallen et al., 2016;Jackson and Richter, 2017), with ambiguous results so far (Stayton and Mangematin, 2018). We contribute to this latter literature sub-stream. ...
... Despite the growing scope of corporate accelerators as a fairly new business phenomenon, and the initial research results suggesting their high potential in terms of innovation generating, there is still a lack of common understanding of the motives and effects of corporate accelerators (Kohler 2016;Weiblen and Chesbrough 2015). It can be assumed that corporate accelerators significantly differ from regional ones, run by technology parks, universities or municipalities, and therefore demonstrate specific business logic (Fehder and Hochberg 2015). In general, logic shapes mindsets and "provide[s] a coherent set of organizing principles for a particular realm of social life" (Besharov and Smith 2014). ...
Article
Full-text available
Corporate accelerators are a rapidly growing entrepreneurial phenomenon occurring in different business contexts and business models within corporate entrepreneurship. Corporate accelerators are considered as an innovation fostering approach within new ventures provided by start-ups. The aim of the paper is twofold: firstly, to explore the motives behind corporations’ engagement with start-ups in launching corporate accelerators, and secondly, to identify the corporate benefits and challenges of this business model innovation. The research design is based on a qualitative interpretative approach exploiting a triangulation of methods by using in-depth interviews (IDI) with corporate managers involved in development of corporate accelerators as well as a focus group interview (FGI) with industry experts. In addition, secondary data were applied to strengthen the exploratory research. The study demonstrates that a wide range of benefits stem from the accelerator activities which can ultimately can initiate changes in large companies. Our research expands on prior findings and suggests that corporate accelerators are driven by internal and external push and pull motives. The study contributes to expanding the scope of corporate entrepreneurship research in regard to the challenges and benefits of corporate accelerators. It provides evidence that corporate accelerators are a source of innovation that can be used to foster entrepreneurial-market logic and entrepreneurial learning.
... By studying incubators in the UK, Bone et al. (2019) find that attending incubator (accelerator) is positively associated with the following three outcome measures: survival (measured by continued online presence), employee growth and funds raised. Finally, based on US regional data, Fehder and Hochberg (2014) suggest that accelerators may bring, regionally, an increase in VC funding going to non-accelerated firms as well to those which participate. ...
Article
Full-text available
Purpose: This study investigates a mediational model between legitimated elements, financial resource mobilisation, and subsequent early firm growth among New Technology-Based Firms (NTBFs) using conformity and control perspectives of legitimacy. Design: To test the hypotheses, a longitudinal database of 303 NTBFs from Sweden, Finland, and France is used. The ordinary least square regression analysis method is applied, and the proposed mediation relationships are studied by employing a four-step approach. Findings: This study finds that based on the conformity principle, two out of three legitimated elements (business plan and incubator relationship, but not start-up experience) have an impact on financial resource mobilisation, which in turn, is associated with early growth in NTBFs based on the control principle. Thus, financial resource mobilisation positively mediates the relationships among the two legitimated elements and early growth in NTBFs. Originality: The findings meaningfully contribute to the collective understanding of NTBF growth. While there are studies that have examined the antecedents of growth and finance separately, this study proposes a novel mediational model that integrates both and tests it empirically.
... Over recent years, entrepreneurship has become one of the most influential alternatives to economic growth. New institutional figures such as incubators and accelerators have emerged in the entrepreneurial ecosystem to develop mentoring programs, intensive training and tutor business ideas converted into projects that have culminated in a public pitch event or demo day for potential investors (Cohen, 2013;Fehder and Hochberg, 2015). Seed accelerators are organisations that aim to accelerate projects in their initial stages of development by providing training to previously selected projects (Miller and Bound, 2011). ...
Article
This paper contributes to the literature on accelerators by filling the gap concerning the criteria used to select venture projects. Seed accelerators develop strict and rated assessment criteria for project selection that grants them objectivity and guarantees program success. This study uses a sample of 309 cases to analyse the criteria applied by an accelerator when selecting projects. Among these cases, 15 entered the accelerator stage. Our work first examines variables linked to the business project, such as the extent of innovation, extent of investability, speed of acceleration and extent of eam consistency. It then assesses entrepreneurial skills such as egotiation, teamwork, creativity, communication and leadership. Our findings show that extent of team consistency and speed of acceleration are the most widely-used variables to assess a business project, while the most valued entrepreneurial skills are leadership followed by creativity. Furthermore, the project is more likely to enter the acceleration stage in the presence of higher team consistency and creativity.
... Smith et al. [24] found that start-ups who participate in accelerator programs receive some milestones sooner and are more possible to fail or to be acquired. Fehder and Hochberg [25] and Hochberg and Fehder [26] found that the existence of accelerators in a region increases venture capital funds for all start-ups, even for start-ups who have not participated in those accelerator programs. They found that this result is irrespective of the rank of the accelerators in the annual seed accelerator rankings. ...
Article
Start-up accelerators have attracted increasing attention from start-ups in recent years. However, little is known about how they interact with start-ups and investors, how they prioritize a wide variety of their services, and how macro-level factors affect their performance. We use a game-theoretic approach to study mutual effects between an accelerator, a venture capitalist (VC), and start-ups. In the model, the accelerator selects start-ups and invests in them. During its program, it provides intensive mentorship for the selected start-ups and screens them to determine whether or not they are successful. Finally, it introduces successful start-ups to the VC to obtain financing for their ideas. Our results indicate that 1) the most vital role of an accelerator is its screening services. 2) Given limited resources of accelerators, prioritizing their services is the key to their efficacy. Screening, mentorship, and seed investment services possess the first, second, and third priorities, respectively. 3) Although accelerators are anywhere beneficial, macro-level heterogeneity of entrepreneurial ecosystems is associated to their efficacy. Their efficacy is higher (lower) in less (more) developed regions. 4) Institutional reforms targeting mentoring or entrepreneurial communities are unexpectedly detrimental to the efficacy of accelerators, while they may enhance start-ups’ equilibrium willingness to participate.
... Successful accelerators shape the newest innovative ideas into successful companies with great efficiency. Researchers Daniel C. Fehder and Yael V. Hochberg found that locations where accelerators are founded typically see their entrepreneurial ecosystems flourish as a whole with increased funding and investment opportunities (Fehder and Hochberg, 2014). ...
Article
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In today’s market era of rapid technological innovation even the most established agribusiness players risk being left behind in the wake of disruptive technology. How can large agriculture companies keep up? One emerging possibility for corporate innovation is that of the corporate start-up accelerator. Companies across all sectors, including agricultural and food technology, are increasingly using these programs to tap into early innovation. In 2017, Alltech ran its first program, the Pearse Lyons Accelerator for agri-business and ag-tech start-ups. This article serves to describe and analyze how corporate accelerators have populated start-up ecosystems and how the ag-tech and food sectors are reflecting this trend. Recommendations based on experience and critical feedback are presented to those considering developing their own accelerators and the role it might play in responsible innovation. Keywords: accelerator, corporate accelerator, start-up, ecosystem, ag-tech
... First, we use spatial aggregate data and lack information whether a newly founded or funded firm is, in fact, a tenant of a coworking space or is, at least, economically impacted by a coworking space in any way. Thus, we can only regard a relation of coworking space market size and founding activity in aggregate data as likely evidence of their true relation consistent with the interpretation of other studies with spatial aggregate data about spatial economic support instruments such as venture capital investments (Chen et al., 2010;Colombo, D'Adda, and Quas, 2019), accelerators (Fehder and Hochberg, 2014), and local banking development (Deloof, La Rocca, and Vanacker, 2019). 13 Because we assume that the initial location decision of such investors has been based on start-ups in coworking spaces before funding others, we do not expect that our results are exclusively driven by such spillover effects. ...
Preprint
We explore how coworking spaces are involved in the entrepreneurial ecosystem of start-ups contingent on the lifecycle stage of the firm and the coworking space market itself. Our study is based on a hand-collected detailed sample of coworking spaces in the seven largest regions in Germany. We find a hump-shaped relation of coworking space supply and founding activity, reflecting maturity effects of the corresponding coworking space market. In addition, we find a positive relation between the coworking space supply and funding activity of start-ups. A European study with WeWork data supports our findings and a difference-indifferences approach mitigates endogeneity concerns.
... Research findings on these accelerators may inform expectations for outcomes related to university accelerators; therefore, results are reviewed chronologically in the following section. Fehder and Hochberg (2014) found that the presence of an accelerator in a metropolitan statistical area (MSA) led to the following increases in the region: the number of investors, the number of seed and early-stage venture capital deals, and the total amount of seed and early-stage funding available. Moreover, they found that funding activity extended beyond companies in startup accelerators to non-accelerated companies in the MSA. ...
Article
Over the past decade, universities have invested heavily in startup accelerator programs; however, their role in the university entrepreneurial ecosystem is ambiguous. Are university startup accelerators intended to educate or are they created to facilitate business starts and to contribute to regional economic development? In contrast, most private-sector startup accelerators serve a consistent and differentiated role in the entrepreneurial ecosystem—they provide programming and resources to startups to increase the probability of a return on investment. Understanding the role of university startup accelerators is an important precursor to evaluating their impact and whether or not the return is worth the considerable investment. In this study, we poll university accelerator directors to gain their perspective on the role(s) that university startup accelerators play and to identify how they are structured and operated. Our research reveals a fairly uniform structure and mode of operation. While facilitating business starts is a key role for some, it confirms education as the primary role for university startup accelerators. We outline appropriate means of assessing the learning that takes place in accelerator programs, offer insight into how these findings can help accelerator directors deliver on outcomes and demonstrate impact, and propose avenues for future research.
... The biggest challenges faced by startups can be mitigated through accelerator programmes to include: funding (Fehder, and Hochberg, 2018), understanding target market, marketing expertise, reaching customers, and lacking experience in their proposed business (Radojevich-Kelley and Hoffman, 2012). According to Winston Smith et al. (2013) startups backed by an accelerator programme receive their rst round of follow-up nancing signi cantly sooner than startups that did not participate in acceleration programmes. ...
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Accelerators help accelerate startups through formal education and mentorship connections during intensive, temporally-compressed programmes for a period of three -six months.This paper investigate how Resource Based Theory (RBT) posits accelerators for sustained competitive advantage of startups. Our research question was to determine the value (in terms of resources offered) that accelerators bring to benefit startups that have been through the acceleration programmes. Our focus was to uncover what value gets created by accelerator programme and how. Through this qualitative study we selected a multiple case study method of 5 accelerator programmes in South Africa. For analysis we linked the RBT (tangible and intangible resources) for each accelerator’s entrepreneurial ecosystem, to determine if the phenomenon of the burgeoning accelerator industry can be better understood. Document reviews were explored to determine intended impact that sustain success for startup (technology) companies. Findings revealed that accelerators ensure that fewer startups fail and more SME’s become sustainable into the future. Secondly accelerators help startup companies define and build their initial products. Thirdly upscale is achieved through, identification of promising customer segments. Finally mentorship and accelerator process enhanced and securing resources is strengthening necessary resources available to startups.
... As Stayton andMangematin (2019, p.1168) outline 'no consensus has been reached on what should be considered an accelerator'. As the agreement on what defines a corporate accelerator remains discordant (Crişan et al., 2019;Fehder and Hochberg, 2014;Richter et al., 2018), our empirical results derive the defining commonalities and differences of corporate accelerators. Our results show the existence of accelerators with selected hybrid characteristics of incubators and venture capitalists and indicate that, e.g., cohort-based groups may no longer comprehensively define corporate accelerators. ...
... Zhang (2007) describes Silicon Valley as the largest cluster in the world where venture backing is easy due to the abundance of capital. Fehder and Hochberg (2014) prove that the desire to establish clusters has led local governments to fund accelerators that attract venture capital but that the success of these accelerators is not clear. Aouni et al. (2013) established a link between venture capital and success of technology clusters. ...
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The conventional wisdom has maintained that being in proximity to entrepreneurial ecosystems helps startups to raise financing, develop and grow. In this paper, we examine the effect of a major component of an entrepreneurial ecosystem-financial or venture capital clusters on the exit of a startup through mergers and acquisitions (M&A). We find that probability of successful exit through M&A increases if the venture capitalist invested in the startup is in a venture capital (VC) cluster. Location of the startup in a top VC cluster is not significant for success once we control for the location of the VC in a top VC cluster.Our results are robust to different specifications of the models that use different time periods, reputation of VC, industry, and the quality of the startup company. Our results provide evidence for VCs, startups and policy makers who want to better understand the components of entrepreneurial ecosystems and their relation to the M&A exits of startups.
... The business model of accelerators to generate revenue is to receive stocks from startups in exchange for services and initial capital. This percentage of stocks is generally between 5 and 7% worldwide (Clarysse and Yusubova, 2014;Fehder and Hochberg, 2014), while in Iran, this percentage varies between 5 and 35%. ...
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Purpose This study was designed to detect the failures in Iranian accelerators. This paper attempts to identify these effects from the perspective of accelerator managers and founders of startups. The main goals of this article are as follows: (1) What are the failures of Iran's acceleration programs from the perspective of accelerator managers? (2) What are the failures of Iran's acceleration programs from the perspective of startup teams? (3) What are some of failures of the acceleration programs that both groups agree on? Design/methodology/approach It has been attempted to conduct semi-structured interviews with managers of corporate accelerators on the one hand and startups accelerated in these accelerators on the other. The interviewees were selected using snowball method and consisted of 9 accelerator managers out of 7 accelerators and 15 startups based on 5 accelerators. The analysis of the information extracted from the interviews and coding of the failure identified in the accelerators was performed using the thematic analysis method. In order to assess the validity of this study, an entrepreneurial doctoral student was asked to codify the interviews individually to compare the extracted codes. Findings Finally, 34 problems have been identified that are divided into four main themes related to mentorship, acceleration program, acceleration structure and infrastructure and internal startup team problems. Overall, the greatest agreement among the failures identified as wrong orientation by untrained mentors, the lack of complementary in ability and skills of team members, the lack of knowledge of mentors, the lack of acceleration managers in entrepreneurship and the lack of a proper leader in startup teams. Originality/value This study aimed to investigate the failures of corporate accelerators in Iran as a developing country, which is the first survey in Iran. We have many researches about the pathology and identify failures of accelerators, but in corporate accelerators, little research has been done. The authors have a classification of failures in corporate accelerators by using thematic analysis. In this study, accelerators' managers and founders of startups were interviewed and 34 failures were identified.
... They influence which start-ups receive funding, survive, and continue to grow and develop. Organizational sponsors-including venture accelerators, start-up incubators, boot camps, angel investors, and venture capitalists-play a crucial role in start-up selection (Fehder and Hochberg 2014;Cohen et al. 2018Cohen et al. , 2019. In weak institutional environments-such as those in many developing economies-these sponsors can fill critical institutional voids and enable new firm development (Dutt et al. 2016). ...
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Existing research at the nexus of institutional theory and entrepreneurship suggests that lowering institutional barriers to forming, growing, and exiting new firms can affect the types of start-ups that entrepreneurs found in a region. These institutional changes could influence entrepreneurs’ perceptions of the value of partnering with venture accelerators and potentially improve these sponsors’ capacity to select high-growth start-ups to fund and develop. This study evaluates these ideas by developing and testing three hypotheses. First, institutional reforms improve entrepreneurs’ perceived value of venture accelerators for resources that affect new venture development. Second, they reduce the average probability of being selected for new applicants, due to a surge in the number and heterogeneity of new applicants within accelerators’ local ecosystems. Third, institutional reforms increase the quality of selected cohorts for accelerator managers due to increases in the average quality and human capital of new applicants. To evaluate these hypotheses, I analyze data from 13,770 applicants to venture accelerators over multiple application cycles between 2016 and 2018 in 170 countries. I use a differences-in-differences design to estimate the effects of institutional changes on start-up selection after regulatory reforms that reduced the time and procedures to start new firms, obtain credit, and resolve bankruptcy for entrepreneurs. The findings have valuable implications for how governments, especially those in emerging and developing economies, can support high-growth entrepreneurship.
... More broadly, this study of feedback as one service that competitions provide to startups contributes to the literature evaluating programs seeking to foster entrepreneurship, which includes Fehder and Hochberg (2014), Gonzalez-Uribe and Leatherbee (2017), Howell (2017), and Scott, Shu, and Lubynsky (2020). Within our data, significant social costs from the private feedback seem unlikely, as there are no highly successful outcomes among low-ranked uninformed ventures. ...
Article
This paper studies how early stage entrepreneurs respond to negative feedback about the quality of their ventures. We use data from new venture competitions, some of which privately inform founders of their relative rank. The empirical strategy compares lower and higher ranked losers across competitions in which they did and did not observe their standing. Receiving negative feedback increases average venture abandonment by 13 percent. Differences in responsiveness – for example, in venture risk, venture maturity, and signal precision – are consistent with particular theories about entrepreneurship, including the importance of experimentation.
... As Stayton andMangematin (2019, p.1168) outline 'no consensus has been reached on what should be considered an accelerator'. As the agreement on what defines a corporate accelerator remains discordant (Crişan et al., 2019;Fehder and Hochberg, 2014;Richter et al., 2018), our empirical results derive the defining commonalities and differences of corporate accelerators. Our results show the existence of accelerators with selected hybrid characteristics of incubators and venture capitalists and indicate that, e.g., cohort-based groups may no longer comprehensively define corporate accelerators. ...
... Economics • (1) Quantitative examination of economic variables such as GDP, GRP, firm profitability, self-employment rate (through a field experiment conducted by a translational scholar and venture capitalist with other venture capitalists and entrepreneurs exploring the causal relationships between these variables and potential firm migrations; Podsakoff and Podsakoff, 2019) and (2) qualitative and phenomenological exploration (through interviews between this translational scholar and venture capitalist and other eye-and brain-tracked venture capitalists and entrepreneurs; Meiẞner and Oll, 2019) of the effects of these variables on the VC firm-portfolio firm dyadic relationship and potential firm migrations (Romo and Schwartz, 1995) ▪ (1) Quantitative examination of the accelerator−entrepreneurial firm relationship on economic variables and ecosystems and (2) qualitative and phenomenological exploration of the effects of this relationship on economic variables and ecosystems (Clayton, Feldman, and Lowe, 2018;Fehder and Hochberg, 2014;Goswami, Mitchell, and Bhagavatula, 2018;Shankar and Shepherd, 2019) Sociology ...
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Professor Wright's body of research on Venture Capital (VC) has advanced the field and has facilitated recent research on new sources of financing for start-ups such as crowdfunding and blockchain. In this article, inspired by Professor Wright's pursuit in encouraging new directions in research, we first demonstrate, with an illustrative study on VC learning, that mixed methods research, which combines quantitative and qualitative data, can be helpful in VC research. We also present some possible mixed methods directions for future research. We conclude with a short and critical discussion on both methods and research practices. In doing so, we hope to stimulate scholars' interest in these underutilised methods.
... Survival is even more difficult for ventures that internationalize early on in their development (Jiang, Kotabe, Hamilton III, & Smith, 2016;Sapienza, Autio, George, & Zahra, 2006). This issue has become particularly relevant among technology start-ups that take part in a business accelerator (Carmel & K aganer, 2014;Fehder & Hochberg, 2014;Goswami, Mitchell, & Bhagavatula, 2018;Hausberg & Korreck, 2020). These programs have quickly multiplied all over the world (Cohen, Fehder, Hochberg, & Murray, 2019), offering start-ups scarce resources such as seed capital, networks and knowledge access. ...
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Research summary Location considerations play a key role in shaping venture performance. Using data from the largest accelerator in the world, we examine the effects of institutional distance and location capabilities on international start-ups' survival rates. We find that international start-ups' survival is shaped by whether it internationalizes to a country with stronger or weaker institutions than those in its home country. Further, the interaction between the directionality of institutional distance and location capabilities is important such that ventures that develop location capabilities in contexts of positive institutional distance experience greater survival rates. Through this study, we make an important theoretical contribution at the intersection of institutional and resource based theory by developing more granular knowledge about institutional dynamics across home and host countries. Managerial summary Internationalizing into emerging countries poses immense challenges to start-ups. This study explores the factors that shape the survival rates of 268 start-ups that have internationalized in the context of a business-accelerator program. We find that their ability to survive is shaped by the difference between home and host-country institutions, in addition to start-up's location capabilities to engage with local resources in the host country. Developing location capabilities in the host country does not directly lead to increased survival rates. The value of developing location capabilities is affected by whether the venture is operating in a country with stronger or weaker institutions than those in start-ups' home country; ventures that develop location capabilities in contexts of positive institutional distance experience greater survival rates.
Article
Business accelerators are a phenomenon of increasing popularity in practice, but their specific value-added for the participating startups has been understudied thus far. Our study addresses this research gap by investigating how participating in a business accelerator program supports startups to forge relationships with other startups, helping them to overcome their early-stage needs. We use an in-depth exploratory qualitative research approach based on a multiple embedded case study design by studying 23 startups within six accelerators in Germany. We find evidence that startups in accelerators forge specific types of relationships, including both cooperative and competitive elements, characterizing their early-stage needs. They cooperate through joint projects and exchange and compete on the firm level for internal and external resources and on the individual level for reputation, which makes these relationships overall coopetitive. Our findings indicate the importance of accelerators in driving the startups’ relationships, as accelerators trigger “coopetitive” behavior among startups through their available tools, including events, communication and the coworking space. This study contributes to literature on business accelerators and coopetition. Additionally, this study offers implications for startups, accelerators and policy makers.
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This study investigates how venture development programs such as private incubators, university incubators, and accelerators influence the success of participating nanotechnology startups. With the recent growth in such programs, empirical work is needed to compare their impact on participants across programs and with nonparticipants. Using data on firm bankruptcies, liquidation, government grants, and venture capital, we find benefits, but the influence of each venture development program varies greatly. We further investigate the influence of program services and resources to clarify program heterogeneity beyond existing typologies. The results clarify the role of these programs and ecosystem intermediaries.
Chapter
This chapter discusses the definition, implications, and benefits of being accelerated and/or incubated into a pre-determined program. The chapter also includes a list of some known programs specifically targeting AI companies.
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This study aims to understand the impact of fundraising innovations on sustainable growth in emerging markets. It opted for a multiple-case study research design using different sources of evidence, including nineteen semi-structured interviews. The subject matter experts (SMEs) were selected using a purposive selection method. The theoretical framework of Porter and Kramer is used. The results suggest that crowdinvesting, initial coin offerings, and accelerators might facilitate sustainable growth of private equity and venture capital markets in Africa due to entrepreneurial ecosystems and networks. The findings are relevant for founders and investors. The study contributes to the literature on entrepreneurial finance in emerging markets.
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This paper is an empirical analysis – based on classic buyer–seller relationship theory – of the spatial relationship between coworking spaces and start-ups in an entrepreneurial ecosystem. We examine the relation between product market competition among coworking spaces and the life-cycle stages of their partnering start-ups, both of which influence the level of trust between the partners. In our hand-collected sample of coworking spaces in Germany’s seven largest cities, our findings indicate that mature start-ups are more likely to partner with coworking spaces in regions where product market competition among the latter is high. The relation between the number of nascent start-ups and product market competition among coworking spaces is found to be hump-shaped, indicating that nascent start-ups are more likely to partner with coworking spaces where market competition is neither too low nor too high. Our findings are corroborated by a European study based on WeWork data.
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The performance of the Nigerian economy – compared to other developed country – is poor and there is an urgent need to improve the situation to guarantee sustainable development. Previous studies have shown that accelerators are viable options, therefore this research studied the factors that affect the performance of accelerators in Silicon Valley. The methodology adopted is a quantitative approach that synthesized previous studies – while providing empirical evidence through a case analysis of accelerators in Silicon Valley. In the course of this study, a theory called the ‘Sustainable Startup Growth’ theory was developed and explored. This theory examined the hypothesis that the quality of services offered by accelerators is more important than the number of startups accelerated, and the sectoral concentration of accelerators is an important factor in its performance. Herein, secondary data were collected and analyzed using the statistical method known as the Multiple Regression Analysis. The results obtained show that the quality of service offered by accelerators was more important than the number of accelerators and their area of specialization was important in attracting venture capital.
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Accelerator programs are an increasingly important part of entrepreneurial ecosystems. While accelerators have core defining features—fixed-term, cohort-based educational and mentorship programs for startups— there is also significant variation amongst them. In this paper, we relate key variation in the antecedents, organizational design and operation of these programs to theories of firm-level entrepreneurial performance. We then document descriptive correlations between these design elements and the performance of the startups that attend these programs. In doing so, we probe the connections between design and performance in ways that integrate previously disparate research on accelerators and expand our understanding of startup intermediaries. Our findings delineate the building blocks as well as an agenda for future researchers to build upon not only our understanding of accelerators, but also our understanding of what new ventures need to survive and flourish.
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In recent years a new model of start-up assistance appeared in the innovation landscape: the accelerators. Considered a new generation of business incubators accelerators present different characteristics. Notwithstanding the proliferation of accelerators the literature on such topic is surprisingly scarce. In order to fill this gap we performed a systematic literature review on the topic of accelerators drawing from the three academic databases ISI web of science, Scopus and EBSCO. The results of our analysis highlight that the literature is articulated in three main streams namely the Definition of business accelerators and description of accelerator programs the Impact of business accelerator programs and Business accelerators as an open innovation tool. Drawing from these findings we contribute to the emerging literature on accelerators clarifying the boundaries of such emerging phenomenon, pointing out the importance and effectiveness of such programs and identifying three areas of potential research.
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A presente pesquisa tem por objetivo identificar o nível de aderência ao framework de medidas de desempenho utilizadas pelas aceleradoras do estado do Paraná para acompanhar o desenvolvimento das startups. Possui como objeto de estudo as aceleradoras do estado do Paraná, tendo como população estimada 09 empresas. A coleta de dados foi realizada por meio de questionários semiestruturados. Utilizou-se de estatística descritiva para realizar a análise dos dados. Os resultados apontaram uma baixa aderência ao framework entre as aceleradoras paranaenses, tanto para medidas financeiras quanto para não financeiras. Contudo, verificou-se que alguns indicadores financeiros e não financeiros possuem um nível satisfatório de aderência, concluindo-se então que as aceleradoras paranaenses se utilizam de medidas de desempenho no processo de aceleração. Verificou-se também que as aceleradoras em sua grande maioria prezam por utilizar medidas de desempenho específicas em cada etapa do ciclo de vida das startups e de acordo com cada modelo de negócio, conforme sugere a literatura.
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Excess control rights by inside shareholders have been documented to hurt minority shareholders. This paper shows that such governance feature may benefit creditors. Using a sample of U.S. dual-class firms, I show that these firms take less operational and financial risk than similar single-class firms, consistent with insiders’ emphasis on long-term survival to access ongoing private control benefits. Such risk avoidance translates into lower borrowing costs for dual-class firms. Further, lenders are able to use specific covenants to prevent potential expropriations by insiders. The overall relationship between excess control rights and firm value may be less negative than previously thought.
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