Boomerang Ventures is about more than capital. It’s about championing innovation, mentoring and coaching entrepreneurs and stewarding funds while optimizing risk versus return. Through our Entrepreneurial Advisory Council and our General Partner Advisory Board, the benefits of startup accelerators and incubators are built-in to our management strategy. This week’s article does a great job of explaining the difference between these two types of organizations.
Kay Whitaker, General Partner
Source: FundersClub | Re-Post Boomerang Ventures 8/7/2019
Startup accelerators and incubators are organizations that support fledgling startups and help founding teams get off the ground, hone their product/service, pick up traction, and raise investment capital.
Accelerators and incubators can get involved at any stage of a startup’s development. However, most tend to focus on idea- and seed-stage startups, as this is when companies can typically benefit most from outside help.
Top-tier accelerators and incubators are incredibly competitive, with acceptance rates hovering around 1% – lower than the admissions rate at all Ivy League Universities.
Like angel investors and VCs, startup incubators and accelerators will sometimes invest according to a particular thesis, focused on a specific industry, market, technology, geography, or stage, while others take a more generalist approach.
However, while a handful of accelerators and incubators have been very successful in helping startups attain success, being admitted to a startup accelerator or incubator does not guarantee the startup’s success, and isn’t a reliable predictor of a sound investment.
Most accelerators admit a very small group of startups, commonly referred to as “batches”, and help those companies build out their businesses and develop their product within a set period of time, in preparation for demo day.