Your Web News in One Place

Help Webnuz

Referal links:

Sign up for GreenGeeks web hosting
November 20, 2013 03:16 am GMT

The Startup Accelerator Trend Is Finally Slowing Down

Launch_ButtonStarting a company has never been easy. Not having to worry about market research and resources can be the difference between getting off the ground and moving back in with your parents. This might explain the record number of startup accelerators and incubators in 2013. According to our projections, there will be at least 170 worldwide by the end of the year. But despite the increase,overall seed stage investment in startups has decreased from a year ago, mainly in North America.As the top few accelerators continue to dominate,new programs are struggling to attract the best founders and make seed investments in promising companies. In an environment where only one-third of startups find follow-on investors, most young accelerators and incubators seem destined to fail because of the overcrowded market for early stage funding. Definitions vary between what constitutes an accelerator versus an incubator and the contrasting strategies therein, but the overall goal is generally the same. Both aim to increase the odds of building a successful business in exchange for a small chunk of equity. Rather than trying to force ‘accelobator’ or ‘incuberator’ into the lexicon, the terms are used interchangeably for all programs that are included in the analysis. We’ll leave further analysis of success by the many types of accelerators out there for separate articles. The first modern accelerator wasY Combinator, a self-described seed stage venture fund, thatannouncedits first batch of eight startups in 2005.TechStars,SeedCampandFounder Institutefollowed shortly thereafter. Each year, the trend has continued to spread both domestically and internationally. One of the positive effects of tech accelerators has been their role in rapidly globalizing the startup community by removing the barriers to entry and providing access to capital for young companies that do not have the benefit of being headquartered in Silicon Valley. In the past two years, 388 international startups (from 49 different countries) were funded by 80 international accelerators or incubators (representing 36 countries). That is twice the international presence of accelerators as in 2009, and nearly three times the diversity of companies. Small, community-based programs supporting the growth of local businesses has played a huge role in the spread of startup fever across much of the world. Not surprisingly,Silicon Valley-based firms are racing to get on the ground in Europe and elsewhere to take advantage of new opportunities and talent. Just recently, 500 Startupsannouncedon stage at Disrupt that they will open their first European office

Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/6Ww4O1tPFjE/

Share this article:    Share on Facebook
View Full Article

Techcrunch

TechCrunch is a leading technology blog, dedicated to obsessively profiling startups, reviewing new Internet products, and breaking tech news.

More About this Source Visit Techcrunch