Uploaded byRick Rasmussen
4 accelerators, incubators
This document discusses different models that provide support for startups, including accelerators, incubators, coworking spaces, and government programs. It provides brief histories and descriptions of incubators, accelerators, and their processes. Notably, it outlines the venture-backed business model of seed accelerators, which provide funding, training, and mentoring to startups over a fixed period in exchange for equity. Examples of notable accelerators include Y Combinator, TechStars, AngelPad, and 500 Startups. The document also discusses business incubators and their focus on providing services to support early-stage companies.
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4 accelerators, incubators
- 1. Accelerators, Incubators, etc. Getout of the Garage… This presentation is made possible by the support of the American People through the United States Agency for International Development (USAID). The contents of this presentation are the sole responsibility of Rick Rasmussen and do not necessarily reflect the views of USAID or the United States Government.
- 2. Classic startup • You’reon your own • Little help • Figuring it out… Apple’s Garage HP Garage Google’s first office
- 3. Now: Lots ofhelp • • • • • • • • • Accelerators Incubators Startup Camps Bootcamps Hackathons Pitching contests Seed funds Weekends Conferences… • • • • • • • • • Meetups University Programs Geek trips Trade missions Ex-pat organizations Diaspora Angel Groups Mentors Government programs
- 4. Working through marketcycles
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- 6. History: Incubators • Anidea Hire a team Build and grow • Prototype: Idealab, Bill Gross, Pasadena CA, 1996. – Come up with business ideas then recruit outsiders to bring it to life. – “Those ideas can gestate for much longer periods of time and the incubator takes a much larger amount of equity”.
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- 8. Communities built tohelp startups • Ad hoc resources – Meetups, conferences, … • Structural assistance – Universities, governments • Venture-based models – Funds – Accelerators
- 9. Physical locations • Venture-basedmodels – Accelerators and funds • For-profit models – Incubators, Ecobators..
- 10. Government-funded accelerators • Overallgoal: Develop a startup economy in a country, region, city or neighborhood – Government funded, typically under resourced – May have a top-down sector focus – May have a relationship with a local university • Typically don’t take equity, may have a “pay-back accounting system • Generally ineffective as government and entrepreneurs have different agendas and different levels of energy.
- 11. Government motivation • Ameans of meeting a variety of economic and socioeconomic policy needs: – – – – – – – – – Creating jobs and wealth Fostering a community's entrepreneurial climate Technology commercialization Diversifying local economies Building or accelerating growth of local industry clusters Business creation and retention Encouraging women or minority entrepreneurship Identifying potential spin-in or spin-out business opportunities Community revitalization
- 12. Canadian Model • Identifiedneed, sponsored by DFAIT • Bootcamps – Silicon Valley goes to Canada – Education and judging • Short-term programs – 48 Hours in the Valley • Canadian Technology Accelerators (CTA) – Soft Landing for 3-6 months
- 13. Canadian model results •120 companies over 3 years • No companies moved • Over 20% set up local development offices • Survey after 2 years – Average employment increased by 3x – Average revenue increased by 10x
- 14. Local Diaspora • Diasporasupport – C100
- 15. Seed Accelerators • Aventure model • Formal process to review, fund and assist chosen startups with a fixed program. • See accelerators support the startups with funding, training, mentoring and events for a specific period (typically 3 months) in exchange for equity
- 16. History • Early seedaccelerator include – Y Combinator, Silicon Valley 2005 – TechStars, Boulder CO, 2006 – Seedcamp, London, 2007 • Over 250 seed accelerators in US, Europe, Asia, Latin America
- 17. Fund-based Accelerators • Thebusiness model is based on generating venture-style returns, not on rent or fees for services. • Seed accelerators do not necessarily need to include a physical space, but many do. • The process that startups go through in the accelerator can be separated into five distinct phases: – – – – – awareness, application, program, demo day, post demo day.
- 18. Accelerator process -Application • Startups accepted in cohort batches. – Recognition of being chosen to be part of the accelerator. – Peer support and feedback that the classes provide is an important advantage. – Mentoring, connections • Highly competitive. – Y Combinator and TechStars have application acceptance rates of 1% to 3% • Awareness • Application
- 19. Accelerator Process -Implementation • Program – A seed investment in the startups is usually made in exchange for equity. Typical investment is $25,000. – During this time, they receive intensive mentoring and training, and they are expected to iterate rapidly. • Demo Day – Startups "graduate”, typically after 3 months. – the startups present to investors • Post Demo Day
- 20. Notable Accelerators Bay Area: YCombinator AngelPad Kicklabs 500 Startups Mountain View San Francisco San Francisco Mountain View Elsewhere: TechStars DreamIt Ventures Launchpad LA Excelerate Labs TechNexus Tech Wildcatters Boulder, plus six other Philadelphia, New York, Israel Los Angeles Chicago Chicago Dallas
- 21. Local Accelerators • SanFrancisco: – AngelPad, Greenstar , Pivotal Labs, Kicklabs, i/o Ventures, The Alchemist Accelerator, PARISOMA, Matter, Runway, Digital Garage, Sandbox Suites • Silicon Valley – Y Combinator, Upwest Labs, Founder’s Institute, Innospring, Vodafone Xone, 500 Startups, Startup Weekend • East Bay – Techliminal, Hackerspaces
- 22. Business Incubators • Supportthe development of research and technology parks in their dedication to startup and early-stage companies. • Research and technology parks, on the other hand, tend to be large-scale projects that house everything from corporate, government or university labs to very small companies. • Most research and technology parks do not offer business assistance services, which are the hallmark of a business incubation program. However, many research and technology parks house incubation programs.
- 23. Most common incubatorservices: • • • • • • • • • • • • • • • • • Help with business basics Networking activities Marketing assistance High-speed Internet access Help with accounting/financial management Access to bank loans, loan funds and guarantee programs Help with presentation skills Links to higher education resources Links to strategic partners Access to angel investors or venture capital Comprehensive business training programs Advisory boards and mentors Management team identification Help with business etiquette Technology commercialization assistance Help with regulatory compliance Intellectual property management
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- 25. Business accelerators • For-profitmodels with investment upside • Rely on various sources of income – – – – Rental Sponsorships Value-added services Events • Support startups as long as is practical or viable
- 26. Philosophy • I'm abit anti-mentoring as that usually connotes one person that is assigned to the company and enforces their personal views and imposes opinions on what is needed sometimes right, often wrong. • I'm more of the opinion that it takes a community to raise a company (it takes a village to raise a child). We have that community here and execute these beliefs on a daily basis. Initial interview, education, open resources, individual, peer and group mentorship, strong connections, events… .