Are Startup Accelerators a Booster or a Trap? The Truth About Their Impact on Funding
Startup accelerators have become a critical component of the entrepreneurial ecosystem, providing funding, mentorship, and networking opportunities. However, the impact of these programs on startups' success varies widely. The study by Hallen, Cohen, and Park (2022) explores whether accelerators help startups secure high-status investors or if some programs fail to provide meaningful benefits. The researchers analyzed two datasets of U.S. startups and found that while some accelerators act as “status springboards”, others may not significantly impact startups' ability to raise funds or gain credibility. The study sheds light on how different accelerators influence startups and whether their participation truly enhances their social standing among investors.…
