The Startup Accelerator Trend Is Finally Slowing Down


Starting a company has never been easy. Not having to worry about market research and resources can be the difference between getting off the ground and moving back in with your parents. This might explain the record number of startup accelerators and incubators in 2013. According to our projections, there will be at least 170 worldwide by the end of the year. But despite the increase, overall seed stage investment in startups has decreased from a year ago, mainly in North America. As the top few accelerators continue to dominate, new programs are struggling to attract the best founders and make seed investments in promising companies. In an environment where only one-third of startups find follow-on investors, most young accelerators and incubators seem destined to fail because of the overcrowded market for early stage funding.


Definitions vary between what constitutes an accelerator versus an incubator and the contrasting strategies therein, but the overall…

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