Techstars, Boulder-based startup accelerator, was found to have the highest portion of companies landing follow-on funding from investors after the program.
The study was done by CB Insights, a New York Investment analysis firm, to show how helpful startup accelerators really are in getting funding. The study points out that startup accelerators typically take a meaningful ownership stake in participating companies, and since the cost of joining one can be high, they asked: are startup accelerators worth it?
The introduction of the study reads:
"A key driver for determining whether to join a program should be how helpful the accelerator is in making a company "fundable." Testing this by assessing the fundrasing successes of companies in a given accelerator."
The study looked at 10 of the most active accelerator programs in the United States to give entrepreneurs a sense of how well the programs help startups become "fundable" businesses.
Techstars was #1 in getting follow-on funding, with 48% of Techstars companies raising venture capital and angel investment of at least $750,000 within 12 months after the program.
Techstars was ranked #4 in median total funding, at $3.01M within 12 months after the program.
Techstars is a mentorship-driven startup accelerator founded by David Cohen, Brad Feld, David Brown, and Jarid Polis in Boulder. Techstars holds 13 week programs in 15 different countries focusing on technology companies with a national/worldwide reach. Fewer than 1% of those who apply are accepted into the accelerator. As of July 2016, Techstars has taken on 762 total companies, 90% of which are active or have been acquired.
Denver Business Journal: Which startup accelerators are best at making companies fundable?