Data Driven Analysis of Startup Accelerators

Abstract

The startup accelerators help nascent startups grow by providing funding and resources. This paper summarizes a data driven analysis of startup accelerators success and presents their growth trends. The goal of this paper was to assess the effectiveness of accelerators. The methodology was to use data to compare US startups that went through the accelerator program with the startups many of which according to Kauffman Foundation failed within 5-6 years, and the businesses that went through accelerator program outside of the US. Data for accelerators was collected from seed-db.com and was filtered for those that were established from 2005-2014. The data shows that the number of accelerators in the US is in the rise, although the growth has slowed down significantly after a very high rise in 2012. Startups that graduated from accelerator programs have approximately 23% higher survival rate than other new businesses.