Ecosystem Architect | Gender Equity Champion and Auditor | Multi-Industry Business Strategist | Mentor & Growth Catalyst | Building Innovation & Impact in MENA
Inspired by a Ezz El Din Osama l MBA l CFA Level l Candidate post calling out accelerators and incubators for "betting on winning horses," I've been reflecting on my own observations. For years, I've seen scaleups and Series A startups in programs meant for early-stage ventures. While it's easy to point fingers, the situation is likely more nuanced than it appears. On one hand, the allure of mature startups for incubators and accelerators is understandable. They often face pressure for quick results, and established companies with existing traction provide a faster path to success stories and potential investor appeal. Moreover, a shift in focus towards later-stage ventures might be a deliberate strategy for some, aiming for greater impact or financial returns. On the other hand, we can't ignore the perspective of these later-stage startups themselves. They might seek specific expertise, a credibility boost, or access to valuable networks and potential exits. The structured learning environment and talent development opportunities offered by accelerators can also be appealing, even for experienced teams. However, a crucial question remains: if incubators and accelerators prioritize later-stage companies, where will the truly early-stage innovators find support? Are we, as an ecosystem, inadvertently stifling the messy, uncertain beginnings of entrepreneurship by neglecting the very companies that need these programs the most? Additionally, factors such as misaligned incentives or even a lack of qualified early-stage applicants could be contributing to this trend. It's essential to acknowledge these complexities while remaining mindful of the core mission of incubators and accelerators: nurturing innovation from its earliest sparks. I don't have all the answers, and I might not be asking all the right questions either, but I believe it's time for an honest conversation within the startup community. Let's re-examine the role of the ecosystem stakeholders, ensuring they balance the needs of both early-stage and growth-stage companies. #startup #ecosystem #incubators #accelerators #innovation
Dear Accelerators and Incubators, Please stop betting on winning horses you are the one supposed to create the winning horse companies What is a $5M ARR company doing in your cohort? Thank you,
Couldn't agree more with both reflections. If I reflect on my experience in Venture Clienting specifically, as a corporate when we started collaborating with startups, they were recommended to us through acceleration programs (which guaranteed credibility and did some of the heavy lifting required for due diligence). Our work with them gave them the chance to grow and gave us the chance to experiment with new technologies (through open innovation practices). Now, we either look for startups who already have a good track record of work or are recommended by accelerators. I am baffled as I bump into the same startups at all the events and in all the accelerators (at least the sector-focused ones), to the point that sometimes I find it useless to engage with the accelerators as I already have contact with the startups themselves, which renders these support entities less useful. I get that they need to guarantee results, but we are in the business of risk-taking, so it defies the purpose not to take the risk of experimentation with the new promising startups...
Investment Manager at VMS l Saudi Startup Studio
6moAn interesting topic to discuss 😄