Kaufman Foundation on Start-Up Business Accelerators

The Kaufman Foundation has released a report entitled "Finding New "Idols": A New Model to Accelerate Start-ups."  The report is on the growth of start-up business accelerators.  These are a new form of start-up incubators which, the report says, are not "your father's incubators" but much more.  Key quote from the report:

"An accelerator is much more; it is a full partnership. The accelerator typically provides much more than space and common management services to start-ups. It helps form companies as legal entities, interviews and hires the appropriate initial management team, and lends its own management expertise.

In short, the accelerator becomes the “new company” throughout seed-stage development. Whereas a seed-stage venture firm will assist in building the company on an as-needed basis, and otherwise provide guidance, the accelerator is “the company” from day one of its formation. The accelerator team is the new company’s team and assists in both business and product development."

The authors believe this new funding and support model will become widespread.  In their press release they say "our impression is the floodgate has opened and more accelerators will be created nationally and internationally."

As the report points out, for a variety of reasons traditional VC firms have become less focused on early stage and seed investing.   Business accelerators are a likely to help fill this funding and support gap for high performance start-ups.

Comments

[Mark Bantigue]

I've believed for some time now, after working for a couple of incubators, that the resources and services available for incubator clients be more diverse in range.

Marketing, operations, human resource, finance, strategic management -- are all key elements that incubators can rear in start-ups.

I want to implement these things in my financing+business coaching services.

Thank you for this article. It re-affirmed my gut-feel that incubators should be more -- accelerators and thus, detached 3rd party 'beginning stage partners'.