Accelerating the Flow of Funds into Early-Stage Ventures
An Initial Look at Program Differences and Design Choices
GALI

The third major report from GALI examines the ability of accelerators to drive funds into participating ventures and explores which programmatic choices correspond with superior outcomes. The report shows that in a sample of 52 accelerators, the average flow of incremental funds into participating ventures is significantly greater than the average that flows into rejected ventures. In the majority (but not all) of these programs, this difference exceeds the reported cost of running the program. These superior funding outcomes are accomplished in different ways; many programs are most effective at stimulating revenue growth, while others are best at increasing the supply of outside equity investment. Given these differences in program efficacy and different paths to funding success, we then examine how specific program choices correspond with the ability to drive funds into participating ventures.

Entrepreneurship & Acceleration: Questions from the Field
Return on Investment for Accelerators
GALI

As the number and type of accelerator programs expand, funders are becoming more interested in calibrating the return on investment for investments in these programs. While there are a number of ways to think about the value for money that accelerators provide, most aspire to accelerate the funds available to grow early-stage ventures through increases in revenue and investment.

This brief provides an initial look at venture outcomes during the year of acceleration in comparison to the cost of programs, expanding the ROTI methodology developed by the Argidius Foundation.1 The analysis suggests that the incremental flow of new funds into cohort ventures exceeds the amount that programs spend on operations and direct investments into cohort ventures. However, it also reveals considerable variability, suggesting that funders need to pay attention to where their accelerator funding dollars are going. 

Read the full report here.

Landscape Study of Accelerators and Incubators in India

by the Global Accelerator Learning Initiative (GALI) 

This study, conducted by the ANDE India Chapter with the support of Autodesk Sustainability and Foundation, uses GALI’s Global Accelerator Survey to add clarity to the profile of accelerators and incubators in India – their structure, objectives, goals, funding, and the financial and non-financial support that they offer.

 Data Highlights:

Sample Characteristics

• University accelerators and incubators made up the largest portion of the respondents, at nearly one-third.
• Two-thirds ran their first acceleration or incubation program after 2013.

Sector Focus and Impact Objectives

• Over half of the respondents indicated a focus on energy or environment.
• Three-quarters work specifically with ventures that have a social or environmental impact objective.

Program Structure

• With a median size of 9 and an 11 percent acceptance rate, cohorts were small, programs were selective, and early-stage ventures were mostly likely to receive support.
• One-third of respondents provide direct funding, and equity is the most popular investment instrument.

Funding Sources

• At 43 percent, philanthropic grants were the most common funding source for programs, followed by government support.
• One-third of the government-supported respondents received funds from the Department of Science and Technology.

Questions or comments? Contact Devyani Singh at devyani.singh@aspeninst.org.

This study, produced in partnership with ANDE Brazil and ICE, uses the Global Accelerator Learning Initiative’s Global Accelerator Survey data in combination with interviews of accelerators and incubators in Brazil.  The report describes the profile of acceleration and incubation programs, highlights accelerators with an impact focus, and compares accelerators in Brazil with the rest of the world.

This report is available in English and Portuguese on the GALI website.