Why the Accelerator Model is Broken—and how 500 Startups is Fixing it

500

When I moved to San Francisco in 2012, I was working on my fourth startup and looking to join an accelerator. The post Why the Accelerator Model is Broken—and how 500 Startups is Fixing it appeared first on 500 Startups. No one would’ve envisioned me as a venture capitalist.

The Value of the 500 Seed Accelerator in 2019

500

It’s been a crazy journey for us from a small first batch of startups in our Silicon Valley Accelerator to running accelerators across the globe and investing in founders from over 76 countries. Over the past nine years, the venture capital landscape has dramatically changed.

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Our Investment Framework Post-COVID-19

500

From taking all aspects of our accelerators digital (including our Demo Day) to rethinking the opportunities of the future, we’ve taken this moment to analyze what innovations can come from this time and new opportunities that arise from our changing environment.

Four Questions Founders Should Ask Before Joining an Accelerator

GAN

Every year, some 30,000+ startups vie for just 1,300 spots at GAN Accelerators. Success rates for startups after they graduate from a GAN Accelerator are pretty impressive, too—more than 80% continue to be in business today.

AWS launches new $30M accelerator program aimed at minority founders

TechCrunch

Amazon Web Services (AWS) today launched a new program, AWS Impact Accelerator , that will give up to $30 million to early-stage startups led by Black, Latino, LGBTQIA+ and women founders. From a diversity standpoint, the venture capital financing landscape remains incredibly imbalanced.

Y Combinator will now invest $500,000 in accelerator companies

TechCrunch

Startup accelerator Y Combinator announced this morning that it has updated its terms, providing participating companies with more total cash. The group will now invest $500,000 in batch startups.

The Future of Corporate Venture Capital

500

How has corporate venture capital changed? Conventional wisdom dictated that incumbents should focus their innovation efforts on R&D and growing their cash cows while investing in a few startups. But the rate of change has accelerated and with it, the balance of internal versus external investment. The post The Future of Corporate Venture Capital appeared first on 500 Startups. All International Investor Education Venture Capital Investing

What Future for Accelerators?

Both Sides of the Table

Accelerators have had quite a good run the past 5+ years. Not just Y Combinator and TechStars but a host of other accelerators across the country. I had witnessed a number of early-stage tech startups in LA raise seed capital from the Bay Area and relocate. There were a lot of requests for us to turn our mentorship program into a physical accelerator with a fund, office space and full-time staff. None of us was convinced the market really needed 5 accelerators.

The Seven Flavors of Capital (for Startups)

Paul G. Silva

Startups need capital to launch and grow. What many entrepreneurs don’t know is that startup capital comes in many different flavors. Here is a 2-page table summarizing each of the major flavors of capital, their pros, cons, and who they are good for.

Accelerators And Seed Deal Flow

Haystack

And one of the sources of that flow are the new accelerators (I’m lumping incubators, accelerators, etc. Before we dive into this, let me say (1) I know a lot of people personally who run these accelerators and consider them friends (and darn good people); and (2) I know there will be a bunch of founders who will say “Hey, well, I met some great investors this way, so it can work.” Investing in resources to help founders hone this skill would be valuable.

Six Reasons We Love Investing in Founders in Small Cities

GAN

You face a lot of challenges—anything from your commute time, to finding great talent, to landing big investments, to connecting with your target customers (fashion and beauty companies come to mind, for instance). Staying in business in a small city or an emerging market can be truly difficult, so what if you invest in a company that doesn’t make it? When a company raises another round of financing, it comes at a higher valuation than when we invested in it.

5 Things VC Associates Wish Founders Knew Before Their Call

Dream It

The venture capital screening call is an important step to get right in due diligence. Alana suggests that before speaking to an associate, you gain a basic understanding of the fund’s focus and stages they invest in.

Why every VC should spend a month with an accelerator

TechCrunch

However, I believe that accelerators can be the glue bringing the two together. I’ve participated in a number of accelerators, including Disney and Techstars, and these programs gave me a noticeable advantage when I stepped into VC. Accelerators are hubs for diversity.

500 Around the World: Takeaways from the Sberbank-500 Accelerator

500

If 500 has learned one thing from investing in over 75 countries, it’s the importance of placing bets in all the right founders and helping build ecosystems for them to thrive in. Last year, 500 partnered with Sberbank—Russia’s largest bank and a leading global financial institution—to launch an accelerator in Moscow, bridging the gap in knowledge and social capital between Silicon Valley and Russia.

ACT Tulsa welcomes Cohort II into accelerator

Innovation 2 Enterprise

ACT Tulsa Invests $1.2 The Tulsa-based accelerator launches Cohort II with eight tech-enabled startups. Powered by their partners, the Tulsa-based accelerator has. now invested $1.2 million of capital into early-stage startups founded by Black and.

Venture capital undermines human rights

TechCrunch

The world’s 10 leading venture capital firms have, together, invested over $150 billion in technology startups. There is a startling lack of diversity within the venture capital sector. We all live in a world shaped by venture capital. Michael Kleinman. Contributor.

Creative capital is the secret sauce, not venture capital

TechCrunch

To create a pathway for market success, startups need two essential assets groups: venture capital and creative capital. Venture capital is formed of the financial and operational assets invested in a new, unproven business enterprise. So what is creative capital?

10 Signs Your Company Needs a Business Accelerator Program

Entrepreneurs' Organization

By Lauren King, Director of the EO Accelerator Program. As someone who’s dedicated her career to helping small-scale entrepreneurs grow their businesses, I’ve heard many skeptics say a business accelerator program is just a cover for startups looking to increase capital.

From Accelerators to Venture Capital: What is best for your startup?

Gust

With startup growth up 61% since 2014 and more investment programs emerging, it can be overwhelming for founders to know just where to jump in. As the most startup-friendly accelerator on the planet, MassChallenge has helped 835 startup companies around the world, who have raised over $1.1 The post From Accelerators to Venture Capital: What is best for your startup? How To Fundraise Starting Your Company accelerators angel funding incubators venture capital

Draper Startup House launches first accelerator program, choosing Austin as its home

TechCrunch

It is now also the new home for Tim Draper’s newest initiative to help support early-stage founders: Draper Startup House Accelerator Program. This latest effort marks Draper Startup House’s only accelerator program, according to Daniel Wiegand, co-founder and president of DSH Accelerator.

D’Amelio family launches VC fund 444 Capital to invest up to $25M in high-growth startups

TechCrunch

The D’Amelio family, including TikTok stars and digital creators Charli D’Amelio and sister Dixie , are formalizing their investments in startups with the launch of a new VC fund, 444 Capital. But many of Tandem’s LPs have returned to invest in 444 Capital.

What Accelerators Look Like in 2021

GAN

Each year, GAN asks the accelerators in our community hundreds of questions about their programs with one goal in mind—to gather concrete insights on the current state of the accelerator industry. Responses from our annual survey culminate in a giant data report that we make available to any accelerator within the community that provided us with their data. Applying to Accelerators in 2021. On average, accelerators receive 576 applications for just 11.2

Launching a Portfolio Acceleration Platform at a Venture Capital or Private Equity Fund

David Teten VC

Almost every private equity and venture capital investor now advertises that they have a platform to support their portfolio companies. Dan Kozikowski, Partner and Head of Platform, First Mark Capital , said to me, “Firms should match services to the stage-specific needs of companies. For a roadmap of your options in working with outside talent, see How Executives Can Work from Home with Private Equity and Venture Capital Funds.

SoftBank-backed Volpe Capital raises $80M to invest in LatAm

TechCrunch

In recent years, the tech and venture scene in Latin America has been growing at an accelerated pace. They’re also investing in funds. Today, Volpe Capital announced the $80 million first close of its fund targeting high growth technology investments in Latin America.

Paris-based VC firm Partech unveils Chapter54 accelerator to help European startups cross into Africa

TechCrunch

Partech Shaker , the innovation division of the Paris-based VC firm Partech , has launched an accelerator program christened Chapter54 to help European startups launch in African markets. Partech has 15 investments in nine countries across Africa, including Wave; a U.S.

Google’s Africa Investment Fund makes first investment in Uganda’s SafeBoda

TechCrunch

Internet giant Google announced today that it has made the first investment from its Africa Investment Fund in Ugandan super app SafeBoda. Before launching the fund, Google proved helpful in startups’ journeys via its Google for Startups Accelerator Africa program.

Launching a Portfolio Acceleration Platform at a Venture Capital or Private Equity Fund

David Teten VC

Almost every private equity and venture capital investor now advertises that they have a platform to support their portfolio companies. Dan Kozikowski, Partner and Head of Platform, First Mark Capital , said to me, “Firms should match services to the stage-specific needs of companies. For a roadmap of your options in working with outside talent, see How Executives Can Work from Home with Private Equity and Venture Capital Funds.

Why I Angel Invest

Angel Capital Association

I’m sharing my thought process because perhaps it will nudge some of you to angel invest too! I consider myself a furiously curious person, and angel investing is one of the most rewarding ways I’ve experienced to satisfy this curiosity.

iMCI managed investment funds

Innovation 2 Enterprise

This Concept Fund provides pre-seed financing and early stage risk capital to advance scalable startup Oklahoma companies to prove new products and processes. OCAST TBFP has made 151 investments in 139 companies totaling $12.95 Oklahoma Seed Capital Fund*. PVP has invested $6.75

Oklahoma, we must preserve state’s R&D investment

Innovation 2 Enterprise

We must preserve, expand even, our state’s investment in research and development. The state recently appropriated $15 million to be matched by local funds to create three entrepreneurial accelerators — one in Oklahoma City, one in Tulsa, and a third to serve rural Oklahoma. It is great to see the state direct investment toward the entrepreneurial potential of our state. Capital follows innovation instead of the other way around.

Startup accelerators’ definition of ‘value add’ is due for a refresh

TechCrunch

Even to outsiders, the inner workings of startup accelerators has become familiar: pumped up on camaraderie and energy drinks, scrappy founders do product demos onstage before a room full of buzzy journalists and investors. Accelerators have an interesting role to play here.

Paris-based accelerator The Family sues co-founder Oussama Ammar

TechCrunch

The Family co-founder and CEO Alice Zagury announced in a blog post that the French startup accelerator is suing Oussama Ammar for multiple claims — breach of trust, forgery and use of forgery. Capital talked with one of the company’s lawyers, Elsa Sammari.

Has VC Funding Bounced Back? A Look Into Post-Pandemic Venture Capital Trends

StartupNation

startup landscape boomed in 2021, doubling year on year with a $329-billion venture capital investment across the board. In fact, in 2021 alone, we saw a sharp influx in VC investment, leading to the creation of 936 unicorns as we stepped into the new year. The U.S.

Apeel bites into another $250M funding round, at a $2B valuation, to accelerate fresh food supply chains

TechCrunch

The new funding will accelerate the rollout of those systems, as well as co-create another 10 supply networks with retail and supply partnerships by the end of the year. It also invested with Temasek in Impossible Foods, leading its Series F round last year.

The Venture Capital Diversity Gap and Why It Matters

StartupNation

Despite the growth in awarded venture capital (VC) funds, a staggering disparity remains between the amount of total VC funds invested in entrepreneurs and the portion of those funds invested in ventures founded and/or led by women—particularly women of color.