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Money quote: Here’s what we’ve really got to confront: Venture Capital is INELASTIC. No matter how awesome and investable accelerators help these new startups t
by macavity23 14y ago
Money quote: Here’s what we’ve really got to confront: Venture Capital is INELASTIC. No matter how awesome and investable accelerators help these new startups to be, venture capital doesn’t have room for all of them.
While this may be true, I don't think this implies the premise of the title. Yes, not all of those startups will make it to 'proper' VC, but I think they produce information that can means those that DO make it are better-chosen.
From a VC point of view, I imagine that knowing what a potential funding target has done with their $20k accelerator funding is very valuable, and will lead to wiser investments.
- myriad 14y agoAgreed. I interpreted the title and article to mean that accelerators cannot be rung zero of ONLY the venture capital ladder, which seems to be a perception trend. The article doesn't imply that what accelerators do isn't valuable for venture capitalists. It definitely is. Just that accelerators are for accelerating startups, many of whom will take funding paths other than VC.
- jeremy1217 14y agoGreat point. I think all accelerators start out that way but now raising money from venture capitalists is the marker of success and I think is missing the whole point of accelerating. It also turns start ups off that could benefit from accelerators that don't wont to raise money from VC.