Entrepreneurship Industry News

Here’s proof accelerators work

Accelerator programmes in emerging markets are succeeding in growing revenues, employees, equity and debt investment of participating ventures, according to research by the Global Accelerator Learning Initiative (GALI).

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Having collected data from over 2,000 startups worldwide who applied to accelerator programmes, GALI’s research found accelerators in high-income countries as well as in emerging markets are having a tangible positive impact on startups accepted onto their programmes.

The data showed startups accepted onto programmes had accelerated revenues, more full time employees, and higher equity and debt investments a year later, as compared to those rejected from programmes.

In emerging markets, startups who participated in accelerators a year later had on average revenues US$26,135 higher than at the start of the programme, while rejected startups saw revenues rise on average by only US$11,043.

Looking at full-time employees, accepted ventures had on average 2.18 more employees a year later. Rejected ventures saw employees rise by only 1.22 on average.

Equity and debt investments secured by participating startups versus rejected startups were also significantly different.

Startups accepted onto accelerators on average saw equity secured grow by US$22,239 by the end of the year, while debt investment rose on average by US$14,616.

Rejected startups achieved equity growth of an average US$8,195, and debt investment expanded by only US$1,566.

Based on the data, GALI concludes accelerator programmes around the world generating “consistently positive acceleration outcomes”, and that they “are effectively supporting entrepreneurs to grow across several measures”.

Read More: disrupt-africa.com