Academic literature on the topic 'Startup accelerator'

Thesis: S.M. in Management Studies, Massachusetts Institute of Technology, Sloan School of Management, 2019<br>Cataloged from PDF version of thesis.<br>Includes bibliographical references (pages 54-56).<br>Under the Chinese government's Innovation and Entrepreneurship Initiative, startup accelerators have been emerging fast during the past few years. Who are the leading players in China's accelerator industry and what is their background? What service are they providing and what value proposition are they positioning? What are the common characters of the accelerators and what are the difference in strategy? The primary purpose of the study is to study the newly emerged industry of startup accelerator in China and conclude in a summary of the industry landscape. The study analyzes the external environment of the Chinese market impacting the startup accelerator industry and summarizes the favorable and unfavorable factors influencing the industry. The study also researches the internal interaction among major stakeholders involved the accelerator ecosystem, to understand the demand of stakeholders and accordingly the value proposition accelerators could propose to meet the demands, specifically in the Chinese market. Through analysis and comparison among six representative accelerators operating in China, including three local Chinese accelerators and three foreign accelerator, the thesis summarizes the value proposition and business model of the accelerators, and the advantage and disadvantage of different strategies.<br>by Yan Zheng.<br>S.M. in Management Studies<br>S.M.inManagementStudies Massachusetts Institute of Technology, Sloan School of Management

The aim of this thesis is to analyse and compare the contributions of business or startup accelerators. The contributions are compared from the point of view of the managers of accelerators, startups and investors. Business accelerators help new firms accelerate their growth. The aid can be provided in a material form through financial capital and services or in an educational form through workshops and mentoring. The first chapter deals with the definition of the accelerator, its history and differences with incubators. The second chapter engages in the causes of the phenomenon of startups and accelerators, the model of lean startup, the impacts of accelerators on the economy and the current situation of accelerators in the world. The third chapters analyses the oldest and the most famous accelerator in the world Y Combinator. The last part evaluates the contributions of accelerators based on the inquiry among experts.

Startups need various resources to survive and scale, while large corporations have vast resources but search for innovations and take startups as a valuable source (Wymer and Regan, 2005). Corporate accelerators are an emerging trendy phenomenon that large organizations are adopting to collaborate with startups. Corporate accelerators take startups either from a specific industry or from all industries (Cohen and Hochberg, 2014), and achieve economic benefit either by financial returns or innovation integration (Deloitte, 2019). The types of partnerships between startups and large corporations can be classified into exploitation, exploration, or the hybrid. The exploitative partnership focus on utilizing existing capabilities from both parties, the explorative partnership aims at building new competitive advantages for involved companies, and the hybrid focus on both sides (Koza and Lewin, 2000). Therefore, the purpose of this study is to explore strategies for startups to select suitable corporate accelerators and partner with large organizations. This research used the explorative method and gathered knowledge from the literature review on startups, strategic partnership and corporate accelerator and thoughts from startups via semistructured qualitative interviews. The author compared the startups’ experience and outcome in different corporate accelerators. The findings show that early-stage startups need a framework to guide their process in building partnerships with large corporations. Also, corporate accelerators were found to be a good tool that brings startups with network, corporate resources, and future customers. Moreover, the key success factors in startup-corporation partnerships are trust, clear objectives, and partner compatibility. A partnership framework was developed to facilitate startups to build partnerships with large corporations through corporate accelerators.<br>Startups behöver olika resurser för att överleva och växa, medan stora företag har stora resurser men söker efter innovationer och ser startups som en värdefull källa (Wymer och Regan, 2005). Företagsacceleratorer är ett trendigt fenomen som stora organisationer använder för att samarbeta med startups. Företagens acceleratorer tar startups antingen från en specifik bransch eller från alla branscher (Cohen och Hochberg, 2014) och uppnår ekonomisk fördel antingen genom finansiell avkastning eller innovationsintegration (Deloitte, 2019). De typer av partnerskap mellan nystartade företag och stora företag kan klassificeras i exploatering, utforskning eller en hybrid. Det exploaterande partnerskapet fokuserar på att utnyttja befintliga kapaciteter från båda parter, det efterforskande partnerskapet syfte är att bygga nya konkurrensfördelar för involverade företag och hybridens fokus ligger på båda sidorna (Koza och Lewin, 2000). Därför är syftet med denna studie att utforska strategier för nystartade företag för att välja lämpliga företagsacceleratorer och samarbeta med stora organisationer. Utforskande metoden och samlade in kunskap från litteraturöversikt om startups, strategiska partnerskap och företagens acceleratorer och tankar från startups via semistrukturerade kvalitativa intervjuer. Författaren jämförde startups upplevelser och resultat i olika företagsacceleratorer. Resultaten visar att startups i tidigt skede behöver ett ramverk för att styra deras process för att skapa samarbeten med stora företag. Även företagens acceleratorer visade sig vara ett bra verktyg som ger startups nätverk, företagsresurser och framtida kunder. Vidare så är de viktigaste framgångsfaktorerna i partnerskap mellan startups förtroende, tydliga mål och parternas kompatibilitet. Ett ramverk för partnerskap utvecklades för att underlätta för startups att skapa samarbeten med stora företag genom företagsacceleratorer.

Background: Corporate accelerators (CAs) are a relatively new phenomenon and increasingly used by corporates to increase their level of innovation. However, there are still no best practices on how these CA programs can be structured more efficiently in order to serve the needs of startups and corporates simultaneously. Here, most extant research focuses on the general goals of CA programs and the definition of certain core elements and features which describe a CA (i.e. provision of coworking space; educational programs), while disregarding the objectives of the startups participating. Purpose: The purpose of this study is to understand how current CA programs can be improved, by analyzing the experiences and perspectives of both corporates and startups. It aims to identify, how CA programs can be more successful for corporates and startups. Method: To satisfy the purpose of this qualitative study, an exploratory research approach was selected and a multi-case research strategy applied. Data was gathered through in-depth, semi-structured expert interviews with five managers and three participants of accelerator programs managed by leading multinational corporates. Through a content analysis, we built new theory based on our findings. Conclusion: This study shed light on current difficulties that arise in CA programs such as internal politics and bureaucracy, internal communication, corporate rigidities, and the important tasks of CA managers navigating those issues. Our study contributes to research on CAs by (1) emphasizing current barriers of CAs; (2) presenting suggestions for creating more successful CAs; (3) showing how CA managers can foster interactions between corporate business units and startups: and (4) creating the SET CA model.

Russia's startups fail at high rates. The purpose of this multiple case study was to understand the market-entry strategies used by accelerated startup managers to succeed in business longer than the first 3 years. The target population for this study was 3 startup owners who completed an acceleration program from the Internet Initiatives Development Fund and continued to operate businesses that generated revenue. The participants in the study were located in 3 different cities in Russia: Moscow, Saint Petersburg, and Tomsk. The conceptual framework for the study was Raheem and Akhuemonkhan's theory of enterprise development and von Bertalanffy's general system theory. Data collection involved semistructured interviews, review and analysis of company documents, reflective journal entries, and direct observation of the management operations and processes. Data were analyzed using Yin's 5-step data analysis process. A thematic analysis of the data revealed 4 themes: evolution of an entrepreneur, sales strategy, acceleration impact, and recommendations for accelerators and incubators. The results of the study may contribute to startup survivability as well as exchanging successful experience among new entrepreneurs. For those people who plan to start a business, this study may contribute understanding the skills for initiating a startup.

Background: For the past decade, large companies have discovered the high value andpotential to invest in external startups, not only for the financial returns but also moreoften for strategic benefits. Today's corporations boost their innovation in many differentways, and the most successful companies use several different sources of innovation, suchas open innovation, corporate venture capital, incubators and accelerators. One of theinnovation tools, namely Corporate Accelerator (CA) is a relatively new phenomenonthat has gotten much attention lately. An accelerator distinguish itself from otherinnovation tools partly by its deeper focus on business development, which aims atdeveloping startups by providing education within several relevant topics such as finance,marketing, management, mentoring, training program and networks. Accelerators alsodiffer from other innovation models in the way that they are more focused on individualor angel investors as future investors, and less on venture capitalists, and they also oftenbegin with a pre-seed investment in the exchange of equity. Purpose: Due to the limited research made within this field, most studies have relied onmedia and self-collected data, rather than, already developed and existing scientificliterature. The vast increase of use in these territories makes it relevant to explore to gaindeeper insight regarding how CAs can and should be designed. We aim at finding outmore about how different designs of CAs are related to successful investments andthereby provide further directions for corporations, startups, investors and future research.Our focus lies within if a CA is a successful way of investing in startups, and if so, howshould a corporation invest. Method: Empirical data was gathered through semi-structured interviews with differenttypes of accelerators and startups that have participated in accelerator programs. Theauthors have been using grounded theory with an internal realism and positivismapproach. The collected data was analyzed and compared with previous research, but alsothe foundation to answer the research questions. Conclusion: For now, there is limited knowledge about CAs in terms of how they shouldbe designed to reach a certain goal, adopted to the needs of the participants and what aCA really want to accomplish. We can see how previous research tries to distinguishdifferent types of CA by its characteristics, designs, approaches and objectives. Inconclusion, we provide a suggested model of how to invest in startups through corporateaccelerators in consideration of hosting your own or joining a third party CA. Our modelshows when a corporation initiates the decision of being a part of an accelerator, it canchoose to host their own or join a third party. The choice includes several trade-offs.

Open innovation is a term that has become popularised over the years, due to changes in how business is done as a result of globalisation and digital transformation. Efforts are being made by incumbent companies to collaborate with external parties to a greater extent, and at the same time, the startup landscape has contributed with new technologies and innovations that in some cases have disrupted markets. A collaboration between large companies and startups can bring about positive synergies since these two types of organisations are different and have the possibility to complement each other. This master thesis looks into the outside-in model of open innovation, specifically examining corporate accelerator programs and incubation hubs from a startup perspective. The following research explores what key services that are offered within these corporate programs and how they can be improved according to startups that have previously partaken in them. This research is a qualitative study with an abductive approach. As part of the research, 10 semi-structured, in-depth interviews were held with representatives from a variety of startups. The major services desired by the interviewees to be included in corporate-run startup programs range from access to internal and external networks to putting more focus on a variety of funding alternatives. Early-stage startups expressed the desire of receiving help with understanding their market and customers. The key improvement areas brought up by the startup companies included the presence of internal champions that can help speed up certain processes and act as a facilitator for important meetings. Many startups point to the importance of having the influence to customize their program experience. In addition, accelerator and incubator employees with previous entrepreneurial experience are considered very helpful by the startups since they can grasp the struggles of the startup in a better way. Furthermore, to have more financing opportunities is desirable.<br>Genom åren har öppen innovation blivit alltmer populariserad,på grund av förändringar i hur affärer görs till följd av globalisering och digital transformation. Stora företag satsar i större utsträckning på att samarbeta med externa parter, och samtidigt har startup ekosystemet bidragit till ny och radikal teknologi och innovationer som har rubbat vissa marknader. Ett öppen innovation-samarbete mellan ett stort företag och en startup kan bidra positiva synergier eftersom dessa två typer av organisationer är olika och har möjlighet att komplettera varandra. Detta examensarbete undersöker den så kallade outside-in modell för öppen innovation, mer specifikt undersöks företagsacceleratorer och företagsinkubatorer från ett startup-perspektiv. Följande forskning undersöker vilka nyckeltjänster som erbjuds inom dessa företagsprogram och hur de kan förbättras enligt startups som tidigare har deltagit i dem. Denna studie är en kvalitativ studie med en abduktiv ansats. Som en del av forskningen hölls 10 semistrukturerade djupintervjuer med representanter från en rad olika startups. De viktigaste tjänsterna som eftertraktas av intervjuobjekten som del av företagsacceleratorer och företagsinkubatorer gäller tillgång till interna och externa nätverk, som i sin tur kan förse tillgång till flera olika finansieringsalternativ. Startups som befinner sig i en tidig utvecklingsfas uttryckte en önskan att få hjälp med att förstå deras marknad och kunder. Förbättringsområden som identifierades av startupföretagen omfattar förekomsten av internal champions, som kan hjälpa till att påskynda vissa processer och som kan facilitera viktiga möten. Många startups pekar på vikten av att ha inflytande över att anpassa sin programupplevelse. Dessutom är accelerator- och inkubatormedarbetare med tidigare entreprenöriell erfarenhet väldigt eftertraktade, eftersom de kan förstå sig på startupföretagen på ett bättre sätt. Vidare, är det önskvärt att ha fler finansieringsmöjligheter.

Running company is very risky and its beginnings are perhaps the most difficult phase in the life cycle of a company, which in many cases discourages potential entrepreneurs from starting up. Budding entrepreneurs are yet to contend not only with the lack of start-up capital, but also with a lack of knowledge, experience and contacts that support successful business development. One way how to overcome these obstacles is to attend one of the programs of startup accelerators that provide novice entrepreneurs not only with starting capital, but also with experience, knowledge and contacts to entities that may be critical for the successful development of business. This thesis aims to determine the participants' satisfaction with Czech startup accelerator StartupYard and appraise the effectiveness of its functioning.

In recent years, accelerators have gained increasingly attention due to their numerical growth, geographic dispersion, and growing numbers of participants they have worked with. Uber, Airbnb, Dropbox or Reddit – they have not only been participants of accelerators, but they can also be identified as ‘Born Globals’ according to the definition used throughout this thesis. Considering this fact and the lack of research in theory on the interrelation of both phenomena, accelerators and Born Global, it is interesting to dig deeper into the impact accelerators have on their respective participants’ global development. For this purpose, the authors conducted a multiple-case study to find answers to the question of what elements of accelerators promote participants to become Born Globals. This multiple-case study included semi-structured interviews with managers of four different cases of accelerators and three respective former participants as well as complementarily used secondary data in terms of company documents. Drawing from empirical evidence, it was found that the major elements of the examined accelerators fostering the participants’ development towards Born Globals can be summarized into five major categories: ’Application Process’, ’Interpersonal Connections’, ’Product &amp; Coaching Methodologies’, ’Education’, and ‘Startup Community &amp; Entrepreneurial Ecosystem’.

This research presents the results of a qualitative and quantitative investigation into what factors are present at time zero that increase the probability that a startup will achieve long term sustainability. Survival rates for startups in the United States (U.S.) are disappointingly low and economically inefficient. The data shows that the U.S. clearly lags its peer countries in the survival rates of startups. The U.S ranked an unacceptable 11th of 14 among its peer countries in first-year survival rates in recent years. Startup failure does not only impact the entrepreneur; it also impacts creditors, vendors, community stakeholders, and employees. While it is commonly acknowledged that entrepreneurial businesses contribute to economic growth, the influential impact survival can have on economic growth within the community is often understated. The economic impact of startups on the community makes this area of research even more vital. To avoid failure and improve the sustainability of startups requires an in-depth understanding of the factors that are causal and non-causal to sustainability. While there has been significant investment and support by communities, government, and private foundations, startup failure rates remain virtually unchanged in the last two decades. Despite the many years of research in the field of entrepreneurship, U.S. failure rates within the first five years’ average 53%, regardless of the industry membership or economic cycles. Identifying factors that are causal and non-causal to the sustainability of emerging businesses is crucial to the founders and stakeholders. Within this study, both internal and external factors that may be causal to the macro survival rate of U.S. startups were studied. The external factors were studied quantitatively, using data published by the Bureau of Labor Statistics (BLS), Federal Reserve Economic Data (FRED) and the Brookings Institute. A protocol of regression analysis and visual analytics were applied to evaluate the quantitative data. It demonstrated that external factors such as the change in real gross domestic product (RGDP), interest rates, and expansion of accelerators have had no significant effect on U.S. macro startup survival rates. Further, the findings confirm that neither geographic location nor industry membership impacted U.S. macro startup survival rates. Internal factors were studied qualitatively, using a grounded theory protocol. The qualitative research did uncover three internal factors that were causal to survival of the startups studied. Those internal factors were:  Career Autonomy – The entrepreneurs motivated by career autonomy were significantly more likely to achieve long-term sustainability.  Allies – The entrepreneurs who identify and utilized allies were more likely to survive.  Purposeful Margin of Safety model – Startups whose founders had a rigorous understanding of the margin of safety (MOS) and its underlying elements of pricing and break-even analysis were more likely to survive. This qualitative study provides significant evidence that, when these three causal factors are present, the likelihood of sustainability is high. These findings extend our knowledge on how to improve the probability of sustainability for the firms. This study demonstrates that the U.S. can and should improve its startup survival rates by focusing on the internal factors that are necessary at time zero to ensure sustainability and survival.