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The Startup Velocity Question: Accelerator Portfolios

Posted on Wednesday, May 22nd 2024

There are over 7000 Incubators and 3000 Accelerators around the world by now. On average, they take 25-30 companies per cohort, give each $15k-$150k in pre-seed funding, and off the bat, drive them to seek exponential growth funded by Venture Capital.

In other words, the Incubator and Acceleration industry operates as a feeder into the VC industry.

Twice a year, the math suggests, 250k startups are going through an incubation or acceleration process.

Some startups go from accelerator to accelerator, picking up dribs and drabs of capital, giving up increasing chunks of equity.

Most fail to find product-market fit.

Why?

Finding Product-Market fit requires Positioning and Repositioning to align with an urgent market need.

Positioning is a skill that is largely absent in the incubator / accelerator management.

Startups need to gain access to Positioning expertise to find a path forward.

Otherwise, unfortunately, they die on the vine.

Don’t let your venture die.

You may not have a 10X path forward, but we may be able to find a 3X strategy.

And we will do so without taking any equity.

Key Takeaways:

  • There are over 7000 Incubators and 3000 Accelerators worldwide.
  • On average, these programs take 25-30 companies per cohort, providing $15k-$150k in pre-seed funding.
  • Approximately 250,000 startups go through incubation or acceleration processes twice a year.
  • Many startups struggle to find product-market fit due to lack of positioning expertise.
  • Positioning and repositioning are crucial for aligning with urgent market needs.
  • Incubator/accelerator management often lacks positioning skills.
  • Startups need access to positioning expertise to find a path forward.
  • We can provide the expertise without equity dilution.

My Question to You:

Have you found a high-velocity product-market fit?If you think you need help, consider 1-on-1 Private Consulting with me. I will diagnose and create a path forward in an hour.

Image by Timur Kozmenko from Pixabay

This segment is a part in the series : The Startup Velocity Question

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