A global study on corporate accelerator programs, highlighting regional and sector trends. Sections include advice for entrepreneurs and perspectives from venture capitalists.

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Corporate Accelerators:
A Growing
Force
August 2015

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Disclaimer
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Research Methodology
This research focuses on trends in accelerator launches, their program design and impact on the start-up
ecosystem. Regional differences, sector level dynamics and forward looking perspectives are provided
based on analysis of the interviews and information obtained from primary sources. Financial metrics and
other financial information related to accelerators and their investments was intentionally not part of the
research design.
The research was undertaken by identifying key players in the accelerator and start-up ecosystem.
Interviews were conducted in person, over the phone and via email exchanges. Information was collected
from primary sources, except where noted. To maintain confidentiality, participants were assured that
answers would not be linked back to them or their company, except where the participant provided
directly quotable statements.
Over 25 interviews were conducted with individuals at accelerators, venture capital firms, innovation
advisors and start-ups. Participants were based in Australia, Germany, Hong Kong, India, Israel, Italy,
Singapore, and the United States.

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Acknowledgements
I would like to thank everyone who participated in the interviews and discussions leading up to this
report. This report could not have been produced without the cooperation and participation of many
corporations, entrepreneurs, advisors, and venture capitalists.
Participants include:
Fahrenheit 212
Microsoft Ventures
PaperClip HK
RocketSpace
Route 66 Ventures
Sandro Olivieri
Target
Technogym
AIA
Blueprint
Blume Ventures
Golden Gate Ventures
Citrix Systems
Deloitte
Deutsche Telekom
Florian Heinemann
Venturetec Accelerator
Workbench
Tripod Advisors
Finally, I would like to thank Stephen Case who served as an editor for this report. His attention to
detail and timely suggestions were invaluable to this project.
Report research and authoring by Falguni Desai.

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Table of Contents
• Executive Summary
• The Corporate Accelerator Defined
• The “Gold Rush” is On
• Dynamics by Region & Sector
• Key Considerations for the Entrepreneur
• The Future of Corporate Accelerators

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Executive Summary
Similar to seed accelerators, corporate accelerators provide a structured program and financial support for
start-ups to build their businesses.
The corporate accelerator count is rapidly growing. 69 corporate accelerators have been launched worldwide,
since 2010. More than 40 of those launches happened in just the last 18 months.
The threat of disruption from start-ups is leading large, multinational corporations to setup corporate
accelerator programs. Large companies are more aware of their vulnerabilities than ever before. Corporate
accelerators provide a fast and structured format for companies to experiment with start-ups and make
investments in disruptive business models which might become core to their business down the road
The financial, media, telecom and technology sectors have the highest number of corporate accelerator
programs worldwide. Regionally, corporate accelerators are launching near their corporate headquarters,
however, a few Asia Pacific hub cities are attracting cross border corporate accelerator launches.
Corporate accelerators are still in their early days and many are changing their programs to become more
strategic. The introduction of various innovation formats, in addition to the accelerator, are helping companies
to engage participants and innovators through the right channels. Looking ahead, more companies are likely to
launch corporate accelerators, along with other innovation formats. Companies will also begin to focus on
clarity of goals and transparent reporting on accelerator achievements.

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The Corporate Accelerator Defined

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What is a Corporate Accelerator?
Corporate accelerators are programs launched by corporations that provide pre-seed stage equity funding,
typically in the amount of $20,000 to $100,000, to start-ups. Accelerator programs generally admit a small
batch of start-ups and provide some form of mentoring and business coaching over a fixed length of time,
ranging from 3 to 6 months. At the end of each program, the start-ups present their businesses to venture
capital firms at a “demo-day” or “pitch-day” event, with a aim of receiving seed investment to continue
operations.
Corporate accelerators follow a model which was established by seed accelerators, the first of which was Y
Combinator. Seed accelerators are generally backed by venture capitalists or angels, that invest in and
mentor start-up companies in order to realize a return on their investments.
Corporate incubators are different from accelerators, in that they generally take a larger equity stake and the
start-up or founder is given a longer period of time (1-2 years) and greater resource support from the
corporation to develop their product or business.
Corporate venturing programs are also distinct from corporate accelerators. Corporate venture arms
generally invest substantial equity capital in start-up entities from a designated fund set up by the
corporation. Typically these investments are made after a Series A round and involve $10m or more per
investment.

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What Benefits Do Accelerators Provide?
Core Accelerator Program Elements
Capital in the form of a grant
or investment is a defining
characteristic of most
programs. Amounts are small
and fixed, with very little
negotiation. Corporations
who invest capital typically
take 6-10% equity in the
start-up.
Mentoring either by company
executives or a combination of
company and other sector
executives is a standard part of
accelerator programs.
Mentoring is offered in the form
of “office hours” or one-on-one
meetings with selected experts.
Free office space is a critical element in the
accelerator program. As office rent can be one of
the highest expenses after salaries, it is viewed as
a very meaningful part of the benefits that
accelerators provide. Office space also provides
the added benefit of interaction with other
entrepreneurs and a “community” feel which
entrepreneurs often undervalue at first but later
realize is a necessary element in success.
Other Elements
• Events and speaker series are viewed as interesting community building and educational opportunities but can also take
focus away from execution
• Formal training programs offered by some accelerators on business topics such as marketing, sales, accounting, finance
and so forth are valuable to founders who may have no finance or business background but are also viewed by some
investors as too “coddling” or elementary
• “In-kind” services such as website development, free advertising space and other administrative and IT support are highly
valuable to entrepreneurs and provide true acceleration to their businesses. These services can be an expensive offer, but
a differentiator for corporations looking to attract the best start-ups into their programs.

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Why are Companies Launching Accelerators?
Innovation
Exposure to new business models, new technologies
and new ideas is the most commonly cited reason for
launching an accelerator. Many believe that
interacting with start-ups is the most effective way to
innovate.
CSR (Corporate Social Responsibility)
A few companies have launched accelerators as a way
to support a societal or charitable cause. These
accelerators act as a donor or investment arm into
initiatives which share their mission. Some have even
housed the accelerator inside their corporate
foundation to create stronger alignment.
Brand
While brand image was not stated as a main reason
for launching the accelerator, many companies
mentioned that having an accelerator created a new
brand experience for certain stakeholders.
Accelerators helped some companies to attract a new
talent pool and clients as their brand took on a more
“tech savvy” image.
1
2
3
The Threat of Disruption
While most corporate accelerators take an equity stake in
the start-ups that join their programs, the investment and
its ROI are not the focal point. Start-ups have a high failure
rate and the ones that succeed have, on average, a 7-to-
10-year exit horizon. Corporate accelerators are a strategic
play, similar to corporate venturing, but at a far earlier
stage in the start-up’s life cycle. The fact that one of these
start-ups might become a multi-billion dollar “unicorn” is a
(very unlikely, but fortunate) by-product of the accelerator
model.
Corporate accelerators create future options for growth
strategy and new lines of business. Accelerators provide
visibility and a faster entry into new products and services.
Without accelerators, most large companies lack the
necessary risk-taking culture and are structurally not
incentivised to enter new markets which don’t
immediately scale.
Companies launch accelerators because a “wait and see”,
attitude may mean that a disruptive, nimble, start-up will
emerge in their sector and erode their revenues.

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The “Gold Rush” is On

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2
3
6
14
20
24
2010 2011 2012 2013 2014 YTD 2015
2013 marks the start of the
“Gold Rush” as the number of
annual launches reaches double
digits. In the last 3 years, over
50 new corporate accelerators
have been launched.
Number of Corporate Accelerators Launched Each Year
Why Now?
Large multinationals are under
pressure to innovate as a new
class of disruptive start-ups
threatens existing business
models
Following the credit crisis,
companies accumulated large
cash balances. A rise in business
confidence has driven M&A
activity alongside organic growth
and innovation programs
As pre-seed or angel funding
rounds have become smaller than
they were a decade a go, a new
set of pre-seed investors is
participating in start-up funding
Source: Company Websites and Florian Heinemann Accelerator website www.corporate-accelerators.net
The Corporate Accelerator “Gold Rush” Has Begun

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About Future Asia Ventures
Falguni Desai launched Future Asia Ventures in 2015. She has over 15 years of experience working
globally at the intersection of the financial services, software, fin-tech, and media sectors. She works
with multinational corporations and private investor groups on accelerator program strategy,
innovation, growth strategy and corporate development. Falguni holds a BS in Economics from The
Wharton School of the University of Pennsylvania.
Media & Business Inquiries:
Falguni Desai
New York, NY
fdesai@futureasiaventures.com