An increasing trend can be observed when looking at the current accelerator environment.
TechCrunch claims that the current accelerator growth may slow down, but looking at new corporate accelerator programs popping up may prove different. More and more major brands are looking to get into the startup funding game.The current accelerator growth curve continues to increase.
The motivation of corporate companies to accelerate young ventures differs for each corporate company.
However the major factors to take money in your hand and accelerate / support young ventures in their first steps are easy to assume.
Young ventures have the
- the agility and
- the speed to market
corporate companies may lack.
In a time where speed, innovation and customer-centric business is crucial for survival, corporate companies need to come up with new ways to stay competitive. Young ventures have the potential to disrupt established industries over night. Hence major brands start to establish accelerator programs to attract the best entrepreneurial talent.
Established companies are steadily challenged by the
- increasing transparency of business (requested by customers or others),
- the globalization,
- the digitalization and
- Porters 5 forces.
These current circumstances force major brands to find new ways to stay innovative.
Speaking in a metaphor:
Current major giat brands can be seen as dinosaurs, the current market development (globalization, digitalization, etc) demonstrates the change of the environment. Startups are the new species, which now might be small and ignorable, but have the better potential to navigate in new environments.
Every company nowadays need to stay constantly alert in order not to be wiped away by potential competitors in the global market.
Accelerator programs are one way to stay close to innovative grounds. In the coming post I will shed some light on why accelerator programs are struggling and only very few accelerators are actually really successful.