Most Startup Accelerators Harm More Than Help, But Some Succeed
A working paper by Youn Baek and Deepak Hegde of NYU Stern, examining nearly 750,000 American startups, suggests that most startup accelerators do not improve survival rates. Accelerators typically offer capital, mentorship, a network, and a three-month support program, promising materially better odds of survival. However, the research indicates that these offerings are largely ineffective. The study's findings challenge the conventional wisdom surrounding the benefits of accelerator programs. Further details and analysis are available in the full report.
The research from NYU Stern challenges the efficacy of typical startup accelerator models, suggesting a potential misalignment between program offerings and actual startup success. This raises questions about the incentive structures within the venture capital ecosystem and the metrics used to define an accelerator's success. Future iterations of these programs may need to re-evaluate their core value propositions, focusing on evidence-based interventions rather than generalized support. The long-term implications for innovation funding and the startup landscape warrant careful consideration as the industry evolves.
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