UP Global - Corporate Accelerators and Incubators


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A brief description of Accelerators, Incubators, and coworking spaces for Corporations considering this kind of Innovation program. We also discuss key features of good Accelerators and ways to measure them. This is a DRAFT and will be updated periodically!

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UP Global - Corporate Accelerators and Incubators

  1. 1. DraftAccelerators, Incubators and Coworking An Overview June 2014
  2. 2. Section Title 2 Section Title 1 Draft …is an office environment shared by people or small teams working on their own projects. You’ll often find freelancers and contractors at Coworking spaces for shared amenities (coffee, WiFi, conference rooms), to be part of a community with similar values and style, or simply to avoid isolation. Coworking spaces sometimes feature social and learning programs, but this isn’t required or expected. CoWorking Space
  3. 3. Section Title 2 Section Title 1 Draft … are places designed to help early-stage companies achieve idea validation over a longer period of time. Incubators help build execution teams around an internally-sourced idea in exchange for equity. Some Incubators are similar to cowering spaces, with support staff and equipment made available to new businesses at low rent. Incubator
  4. 4. Section Title 2 Section Title 1 Draft …a program that takes small amounts of equity in externally developed ideas in return for small amounts of capital and mentorship. Accelerator programs bring in batches (cohorts or classes) of companies for an intensive period of product development and professional mentoring over a limited timeframe (usually 90-120 days). Accelerator
  5. 5. Section Title 2 Section Title 1 Draft Do you want Cultural change, Community outreach, or Product Development? All three? Clear goals and outcomes will help you choose the right program structure, the right partners, and the right metrics/indicators. What is your goal?
  6. 6. Section Title 2 Section Title 1 Draft Video Examples 01 Sprint Mobile Health Based in Kansas City, Missouri and operated in partnership with Techstars, this accelerator graduated their first class in June 2014. https://www.youtube.com/watch?v=H5iJCsudrDg ! 02 Samsung Accelerator Based in New York City and Palo Alto, CA, this accelerator focuses on consumer electronics and is operated entirely by Samsung. https://www.youtube.com/watch?v=fC9sXSQyxUE ! 03 Microsoft Garage Based in Seattle, WA, Garage is an incubator for the development of internal ideas by Microsoft employees https://www.youtube.com/watch?v=-zIZ7_QAXN0 04 GE+Quirky Quirky crowdsources ideas and brings them to market with an IP and revenue share to inventors They have partnered with GE to develop smart device concepts in a unique take on a corporate incubator. https://www.youtube.com/watch?v=o3EFecAEJe0 ! 05 Vegas Downtown Project In effect, an incubator for Las Vegas downtown focused on building a community with startup and real estate investments, on a budget of $350M. https://www.youtube.com/watch?v=1Q_OoRydObE !
  7. 7. Section Title 2 Section Title 1 Draft Exploration is the engine that drives innovation. Innovation drives economic growth. So let's all go exploring. -Edith Widder We recently met with our other partners to discuss what makes a great Accelerator program. Together, we made several key observations: • The best Accelerators build communities of alumni, mentors, community organizers, and partner networks. • They bring business units together and work across silos. • They involve management as mentors to internal teams and external companies. • They have clear succession planning, to help companies transition to business units. • They are measurable, and focus on key performance indicators. Building an Accelerator Program?
  8. 8. Section Title 2 Section Title 1 Draft The Players ! ! Funding Structure Company Goals Mentoring Access to Partners ! ! Execution Ideas & Innovation New Capabilities Cross-Training Alumni network ! ! Mentoring Ideas Possibly, Leads Entrepreneurs Education Role models Management (Executives) Intrapreneurs Community (Organizers and Entrepreneurs) ! ! Program Structure (i.e.Techstars) Mentoring Customers Connections Partners
  9. 9. Section Title 2 Section Title 1 Draft Accelerator Inputs Whys •Capability Building •Cultural Discovery •Vetting Internal Ideas •External Validation •Develop External / Internal Partnerships Hows •Empower Intrapreneurs with permission & time •Internal Recruitment (Roadshow) •Mentor training and matching programs •Facilitate team formation & skills development
  10. 10. Section Title 2 Section Title 1 Draft "If you want to go fast, go alone. If you want to go far, go together." #AfricanProverb The accelerator is a chance for your company to learn from the startup community, as well as a chance to grow companies. Create a clear plan for how external entrepreneurs can get involved. Consider attending/sponsoring events, inviting the community into shared workspaces, and opening mentorship and resources to the community. Have a playbook for community involvement. Most of all, remember to lead with your actions, not your brand. Community and Corporation, Together
  11. 11. Section Title 2 Section Title 1 Draft Post-Accelerator Support Systems Company •Transition plan to Business Unit or outside of company, including personnel transfer. •Access to Sales, Distribution, Customer Networks, and Engineering Resources •Access to additional capital (internal and external) •Post-accelerator KPI tracking and follow-up People •“Halfway house” or development sabbatical for entrepreneurs between projects. •Robust Alumni Network, with regular communications and networking opportunities. •Coach and Talent management program. •Cross-training and community engagement opportunities.
  12. 12. Section Title 2 Section Title 1 Draft Poll: What makes a good Accelerator? Structure •Builds real businesses, rather than furthering niche projects. •Operates within a Vertical interest as opposed to a specific technology or niche. •Emphasizes idea validation with a data-driven approach. •Has a holistic vision for community engagement. May include multi-purpose space. •Bring Business Units to the table. People •Provides exclusive access to seasoned mentors and decision makers. Also includes peer/ cohort mentoring. •Builds a strong Alumni network that gives back to current cohort. •Has an infectious culture that attracts talent. •Ideally, started and operated by entrepreneurs.
  13. 13. Section Title 2 Section Title 1 Draft Poll: What makes a bad Accelerator? Structure •Extracts value from companies, instead of creating value for them. •Is an Accelerator in name only, without programming or scalability to back it up. •Provides companies with In-kind investments (equity for services) •Is a Cultural mismatch with the parent org or business units. Lacks a management sponsor. People •Is not run by an entrepreneurial team, such as a marketing or strategy organization. •Inexperienced or otherwise low- quality mentors. •Created by former business people who are looking to make angel investments and be close to deal flow (doing it for profit).
  14. 14. Section Title 2 Section Title 1 Draft “Right-size your investment in innovation and entrepreneurship.” - TA McCann Accelerators can create company value by creating stakes in new companies as well as new business units. The following framework will help you measure the important factors when constructing your innovation program, including an Accelerator. Ideas, validation, people development, and community engagement should all be measured. Each stage requires attention, evaluation, assistance, and their own metrics. Measuring Accelerator Performance
  15. 15. Section Title 2 Section Title 1 Draft Measurement Framework
  16. 16. DraftThanks!