Startup accelerators are now essential to entrepreneurial ecosystems, providing mentorship, resources, and networks to fast-track early-stage ventures. But does accelerator participation always improve a startup’s performance? And how much does program design matter?
Our recent study, published in the Strategic Management Journal, explores these questions, analyzing data from 8,580 startups in 408 accelerators across 176 countries. The findings reveal that while accelerators generally boost startup success, the specific design of these programs plays a critical role.
The Benefits of Accelerator Participation
On average, startups that complete accelerator programs raise more venture capital, generate higher revenues, create more jobs, and offer better wages than non-accelerated startups. These findings echo earlier research on leading accelerators in the U.S. like Y Combinator and TechStars, showing how structured programs provide essential resources, networks, and guidance that drive growth.
Why Program Design Matters
One of the study’s key insights is that the impact of accelerators varies widely with program design. Specifically, the composition of the cohort, structure of knowledge-building activities, and program duration all influence startup outcomes:
- Cohort Composition: Whether a cohort is industry-specific (knowledge depth) or diversified (knowledge breadth) affects startup success. Industry-focused cohorts were linked to better revenue growth, while diverse cohorts saw greater post-acceleration venture funding. This finding suggests that both depth and breadth in cohorts offer unique advantages depending on a startup’s needs.
- Knowledge-Building Activities: Structured programming is another crucial factor. Programs with formal pitching events, targeted mentorship, and demo days yielded stronger outcomes. Startups in programs with formal pitching events were 28% more likely to secure venture capital, and those with access to seed funding scaled more successfully post-acceleration.
- Program Duration: Time in an accelerator also matters. Longer programs allow for deeper mentorship and development and more peer interaction, resulting in better post-acceleration outcomes. Startups in extended programs attracted more venture capital and scaled by more than those in shorter programs.
Tailored Approaches for Different Startups
Aligning accelerator design with startup needs is important. Early-stage ventures, still establishing foundations, benefit from educational components, seed funding, and broad industry exposure that are often available in diverse cohorts. In contrast, more advanced startups benefit from industry-specific programs with deeper sector expertise, helping them scale effectively.
This study suggests the value of tailoring program designs for accelerator managers rather than using a one-size-fits-all approach. Managers can consider offering different tracks for startups at various stages or balancing knowledge depth and breadth to align with startups’ learning needs.
For entrepreneurs, the findings emphasize the importance of choosing an accelerator that aligns with their stage, industry, and goals—whether they seek funding, mentorship, or a broad peer network.
Accelerators provide vital resources for startups, but their design heavily influences the extent of their impact. By understanding how cohort composition, program structure, and duration shape outcomes, both accelerator managers and startups can make informed choices for long-term success. This study offers a roadmap for optimizing accelerator design to support startups in reaching their full potential.
