The role of accelerator programs design in the result of fundraising by Startups

The objective of this applied research is to investigate the reasons behind the differences in the performance of graduates from accelerator programs. The study aims to identify the influence of two fundamental elements of accelerator programs, namely mentorship and access to investors, on the performance of startups. Additionally, the mediating role of startup background is also taken into consideration.

This is a descriptive-correlational study that uses data collected from 157 startups that participated in Canadian accelerators between September 2021 and June 2022. A theoretical model was presented to explain the relationships between variables, and the conceptual model was tested using partial least squares structural equation modeling (PLS-SEM).

The results of the study indicate that the design of accelerator programs, particularly the frequency, intensity, and quality of opportunities given to access investors, and the strength of the startups' network during the program, have a significant impact on the chances of graduates to receive more rounds of investment earlier. The study also found that more time commitment, a high quality of relationship between mentors and entrepreneurs, and better professional and mental support in mentorship could lead to an increase in the number of investment rounds and speed of fundraising. Furthermore, the study revealed that accelerator mentorship programs bring better results for founders whose education field and work experience are related to their business idea.

The study concludes that the design of accelerator programs, particularly the mentorship and access to investors, has a significant impact on the performance of startups. The findings of the study can provide insights for future research and can be useful for accelerators in designing their programs.