Accelerators

jessica.stacey@nesta.org.uk

@JessStacey

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An overview of our accelerator work

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Eight most cited needs of early stage social innovators

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1. People to work with

2. A proposition to test

3. Potential (and actual) customers

4. A source of advice about

the basics

5. A source of trusted

strategic advice 6. Money

7. Somewhere to work

8. Emotional support and mentorship

The building blocks of an accelerator

Focus on teams, rather than individuals

Operates in cohorts or classes

Offers pre-seed finance (usually in

exchange for equity)

Time-limited support, with intensive mentoring and

programmed events

Application process open to all, highly

competitive

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Trends in the accelerator ecosystem

Growth in the number of

programmes

Changing models

More vertical specific

programmes

More corporate

programmes

Increase in social venture accelerators

Then….

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Trend #1 Growth of programmes across Europe

…and now

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To date: • 213 programmes globally, 53 in Europe • 738 companies accelerated in Europe • 2034 jobs created in Europe (courtesy of www.seed-db.com)

Trend #2 More corporate players

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Trend #3 More vertical specific programmes

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Trend #4 Evolving models

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Trend #5 More social programmes

• Over 50 impact accelerators worldwide

• These programmes were concentrated in the USA (38), India (6) and the UK (6)

http://www.nesta.org.uk/publications

/good-incubation

Trends in the accelerator model

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• Demise of the demo day

• Lengthening the period of support

• Follow on funding – attempts to address the post-incubation gap

• Diversification – new revenue streams and and markets

• Opening up, better measurement and evaluation

Some criticisms of the model

• They’re no different to incubators

• They exploit startup founders

• They’re helping to create a bubble

• Good companies still fail after accelerator programmes

• Mentor apathy

• They’re not sustainable

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There’s little evidence…

Research challenges:

• It’s still a relatively a new field

• Defining success for programmes with different objectives

• Disentangling success factors

• Difficulties in defining and tracking a control group

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..however there is a growing field of research

• Global Innovation Growth Lab - Nesta and Kauffman Foundation

• Impact of Entrepreneurship Database Program – Goizueta Business School at Emory University, Aspen Network of Development Entrepreneurs, Kauffman Foundation

• Seed rankings – Yael Hochberg and Susan Cohen

• Home Run, Strike Out, or Base Hit - Sheryl Winston Smith and Thomas Hannigan

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acceleratorassembly.eu Seed-DB survey of startups

revealed:

• Mentorship and networking

opportunities are the most

valuable benefits of an accelerator

• Generic, inconsistent mentoring

can be confusing

• Focus on demo day can be

distracting

What next…

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Networks Research

Skills Funding

Resources

Lists • www.f6s.com • www.seed-db.com • gan.co • www.startupfactories.eu • beta.capitallist.co Research and articles • www.nesta.org.uk/develop-your-skills/accelerators • yael-hochberg.com/rankings.htm • www.aspeninstitute.org/sites/default/files/content/docs/pubs/INNOV0803_003-

006_kempner_12-11-13_FINAL.pdf • https://agenda.unibocconi.it/eventi/attach/WinstonSmith%20Paper20140210165626.pdf • www.acceleratorassembly.eu/research • www.nesta.org.uk/publications/good-incubation • www.nesta.org.uk/publications/startup-factories • www.forbes.com/sites/kauffman/2012/08/08/evaluating-the-effects-of-accelerators-not-so-

fast/

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Thank you

jessica.stacey@nesta.org.uk

@JessStacey

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