Is Accelerator an Option? Impact of Accelerator in Start-up Eco-System!

Abstract

Purpose The purpose of this research is to study the impact of ‘Accelerators’ on Indian Start-ups eco system. Can it reduce start-ups mortality? Is ‘Accelerator’ instrumental in providing an effective platform for accelerating the growth of start-ups? Do the Accelerators meet the expectations of the start-ups? Can accelerated start ups attract Venture Capitalists funding?

Design/methodology/approach This research attempts to establish the framework of analysis of the impact of Accelerator on start-ups, VC’s. For this purpose of this study, primary and secondary research data has been used. Existing literature in the form of secondary data is not much available because the concept of the Accelerators for survival and growth of start-ups is in nascent in India. Therefore the primary data through structured interviews as a research construct was chosen. Hence the structured interviews were conducted with founders of Start-ups’ and Accelerators’. Out of the existing forty (40) Accelerators in India that we approached, ten (10) responded to the structured interviews.

Findings Start-ups are finding accelerators an ideal platform for strategic guidance, accelerating their growth and fund raising process. The private equity (PE)/Venture capital (VC) are getting higher quality start-ups coming out of accelerators. Overall the mortality of the start-ups is reduced.

Research limitations/implications (if applicable) The research is based on the primary data captured from start-ups and accelerators and secondary data published in start-ups media. The concept is in nascent stage in Indian context and is gradually maturing.

Practical implications Accelerators can visibly impact the fund raising aspects, value proposition and revenue growth. The research is first of its kind in Indian perspective based on the interaction with the founders’ of Start-ups’ and Accelerators’.

Keywords: VC, Risk Capital, Start-ups, Entrepreneurship, Accelerators