The team at CBInsights has identified some of the most successful startup accelerators like Y Combinator, Techstars, and 500 Global based on “the strength of their portfolios.”
As stated in the update from CBInsights, despite the economic slowdown, startup accelerators continue to play “a crucial role in the entrepreneurial ecosystem, providing startups with the necessary resources and guidance to grow and scale.”
However, the CBInsights report clarified that “not all accelerators are created equal.”
The research report pointed out that some focus on “backing as many startups as possible, while others adopt a more selective approach.”
In the latest CBInsgihts report, they have identified some of the most “successful” or high-potential startup accelerators “based on their portfolio strength and performance, using the 2020 investment class as a basis.”
They claim to have used CB Insights data “to analyze various metrics like the number of follow-on investments in an accelerator’s portfolio, the size of those investments, and the valuations of portfolio companies.”
Notable examples from that list include:
- Y Combinator and Plug and Play lead in the broad investing approach, their 2020 alumni making up one-third of all portfolio companies included in this analysis. Nearly half of their 2020 alumni have since received follow-on investments, and 5%-10% of each accelerator’s 2020 class has raised $25M+ or reached $100M+ valuations post-accelerator round.
- SAP’s SAP.iO Foundry and the Surge accelerator from Peak XV Partners (formerly Sequoia Capital India & SEA) shine with $25M+ fundraisers or $100M+ valuations, despite smaller 2020 portfolios. Notably, Surge holds the highest follow-on investment rate on the list at 83%.
- Corporate accelerators like Google, Mastercard, Meta, and Microsoft recorded high rates of $25M+ fundraising, $100M+ valuations, or both among 2020 alumni. This suggests these accelerators give portfolio companies a boost from the brand recognition of their parent organizations.
For a more comprehensive analysis and breakdown of the “strength” of each accelerator’s portfolio, including major investments, you may access the complete research report here.
