Business Models for Accelerators: A Structured Literature Review

International Entrepreneurship and Management Journal

Corporate accelerators are a rapidly growing entrepreneurial phenomenon occurring in different business contexts and business models within corporate entrepreneurship. Corporate accelerators are considered as an innovation fostering approach within new ventures provided by start-ups. The aim of the paper is twofold: firstly, to explore the motives behind corporations' engagement with start-ups in launching corporate accelerators, and secondly, to identify the corporate benefits and challenges of this business model innovation. The research design is based on a qualitative interpretative approach exploiting a triangulation of methods by using in-depth interviews (IDI) with corporate managers involved in development of corporate accelerators as well as a focus group interview (FGI) with industry experts. In addition, secondary data were applied to strengthen the exploratory research. The study demonstrates that a wide range of benefits stem from the accelerator activities which can ultimately can initiate changes in large companies. Our research expands on prior findings and suggests that corporate accelerators are driven by internal and external push and pull motives. The study contributes to expanding the scope of corporate entrepreneurship research in regard to the challenges and benefits of corporate accelerators. It provides evidence that corporate accelerators are a source of innovation that can be used to foster entrepreneurial-market logic and entrepreneurial learning.

2019

Business accelerators are one of the best sources of financing for seed-stage acceleratorsthe conclusion one can make based on the quite scant accelerator research. However, since the studies of accelerators have mostly based on the data on American top-accelerators, little is known about the success-factors of accelerators in other contexts. This article analyzes whether the success-factors found to influence accelerators are similar to these previously found in a different context of Estonia, where, despite the short period of the free market economy, a highly successful startup ecosystem has developed. To capture the full effect of accelerators in Estonia the complete sample on Estonian accelerated startups and accelerators is provided, which is unique in accelerator research, where mostly crowdsourced, incomplete datasets are used. The analysis from regression models revealed that size of funds gained from accelerators, average yearly sales and employees' growth and being a software company are predictive of success of accelerated startups. The internal and external success-factors that are linked to the fortune of accelerators are explored through semi-structured interviews with accelerator representatives. Accelerators owe their success to their intrinsic qualities, from which social networks creation by accelerator, deal flow/startup selection and reputation were considered important, but the analysis confirms that their external context, most importantly policy environment and presence of human capital, also strongly influence their success and creation.

2019

Since the establishment of the Y-Combinator in Silicon Valley in 2005, accelerators are an ever-growing phenomenon that beginning with the United States is representative on six continents until today. This should not be surprisingly as nowadays, startups seem to be a major source of innovation, contributing to the invention of novel products and business models by using new technologies and thus are reasonable to secure the secure and development of local economies. To be defined accelerators are institutions that support high-growth, early-stage businesses support to create entrepreneur ́s ideas into sustainable business models through education, mentoring and funding. In counterpart to the until today better known model of incubators accelerators differ as they are limited to a shorter period of time of approximately three month, which leads to the recognition of a higher intensity that as a result shortens to time to discover the sustainability of businesses. Nevertheless, there...

SSRN Electronic Journal, 2000

The purpose of this paper is to study the impact of accelerators on the Indian business start-up ecosystem. Can it reduce start-up mortality? Are accelerators instrumental in providing effective platforms for accelerating the growth of start-ups? Do they meet the expectations of the start-ups? Can accelerated start-ups attract venture capitalist funding? The authors propose that "accelerators have a positive impact on the Indian start-up ecosystem." This paper attempts to establish the framework of analysis of the impact of accelerators on start-ups. For the purpose of this study, primary and secondary research data were used. Existing literature in the form of secondary data is available only to a limited extent because the concept of accelerators and their role in the survival and growth of start-ups is in the nascent stage in India. Hence, for the purpose of designing the research framework, primary data was obtained through structured interviews. These were conducted with the founders of start-ups and accelerators. Out of the already existing forty accelerators in India that were approached, ten responded to a request for a structured interview. It was found that start-ups find accelerators to be an ideal platform for strategic guidance, while accelerating their growth and generally assisting in the fund raising processes. The private equity (PE) investors and venture capitalists (VC) are able to draw higher quality start-ups from the accelerators. Overall the mortality of the start-ups is reduced. Accelerators can have a definite impact on fundraising, value proposition and revenue growth. This research study is the first of its kind written from an Indian perspective using active primary participants.

Sustainability

Start-up accelerators are units supporting entrepreneurs (substantively, financially, legally, and organizationally) in establishing and running young and innovative companies such as start-ups. The commencing energy crisis has led to the need for energy savings, as well as the need to change energy policies and implement energy transformation, creating a wide field for start-ups and start-up accelerators. Making full use of potentially innovative solutions developed by start-ups is, in turn, essential for energy giants and related accelerators in the market. This has created the need for specific research in this direction. Therefore, in this paper we review the literature for 2011–2021 with respect to the role of accelerators supporting start-ups. A survey based on the Scopus database resulted in the identification of 76 papers on accelerators. Particular attention was paid to aspects of sustainable development (economic, social, and environmental). The analysis indicated that 75 ...

SSRN Electronic Journal, 2018

Recent years have seen the rapid emergence of a new type of program aimed at seeding startup companies. These programs, often referred to as accelerators, differ from previously known seed-stage institutions such as incubators and angel groups. While proliferation of such accelerators is evident, evidence on efficacy and role of these programs is scant. Nonetheless, local governments and founders of such programs often cite the motivation for their establishment and funding as the desire to transform their local economies through the establishment of a startup technology cluster in their region. In this paper, we attempt to assess the impact that such programs can have on the entrepreneurial ecosystem of the regions in which they are established, by exploring the effects of accelerators on the availability and provision of seed and early stage venture capital funding in the local region.

International Journal of Management and Economics

Accelerators have been becoming increasingly popular among young entrepreneurs interested in developing products, attracting investors, or establishing relations with industry represented by large companies. The focus of the studies is to conduct literature review due to the small number of scientific articles are available on this topic. The article aims to show the current state of knowledge about startup accelerators and the support they provide. It outlines what added value accelerators offer in their programs for young innovative companies. To achieve the stated aim, the authors combine a systematic literature review with a bibliometric analysis. The results of this research will be helpful in better matching the developed project with existing accelerator programs on the market. It can contribute to a better understanding of the principles governing the programs, program expectations of the accelerator and its partners with respect to the proposed solutions (corporations, busi...

2021

There are competing theories for studying of accelerators and incubators. The absence of a unified understanding hinders start-up progress. Our research clarifies strengths and weaknesses of universitybased incubators to present a framework for improved effectiveness and development. Some research shows structural models connecting investors to other critical incubation mechanisms. Other research shows models relying on the incubator director's experience to embody this connection. In such cases, the incubator's success depends on its manager's ability to establish a viable link between stakeholders. Although the presence of these components for the incubator is essential; ensuring a structural interconnection is vital. Using four cases to establish a list of success factors; our conceptual framework demonstrates these two models and explores their potential.

2019

First and foremost, I would like to thank my mentor Professor Dr. Kurt Matzler for incredible support and guidance that he had given me throughout this journey. From then on, I would like to express my thankfulness to Mr. Niels Cotiaux, and then the team of Next Incubator, for providing the contact to research partners and for sharing all the relevant information. A very warm, special thank you goes to Ms. Corinna Haas, Mr. Santtu Hulkkonen and Mr. Filippo Feraris for sharing their deepest insights and motivation. You have been fantastic, cheerful partners, all in your most unique ways, and I hope that your companies become the synonym for the future. Without your help, this thesis wouldn't have come to existence. I would also like to thank my colleagues and friends, Mr. Daniel Stiehle, Mr. Florian Koch and my partner in (research) crime, Mr. Oliver Schnell, whose light sense of humor and endless support throughout the writing process have always brought back a spark of energy and motivation to keep writing. I hope to have succeeded to return at least a part of the favor; without them, this thesis will not have been successfully finished. Finally, endless thankfulness goes to my mini-ecosystem of family and friends, whose love and contribution was equally important to the breathing process itself; both have kept me successfully alive throughout.