Where Einstein Meets Edison

Do Startup Accelerators Deliver Value? The Economics of Creating Companies (Part 2 of 2)

Do Startup Accelerators Deliver Value? The Economics of Creating Companies (Part 2 of 2)

Aug 22, 2011

As alluded to earlier (see Part 1), startup accelerators may contribute to firm growth in four ways: human capital growth, reduction of search costs, signaling, and reduction of the rental rate on capital. However, the significance of any of these effects has yet to be proven empirically. Human CapitalThe role of human capital in startup formation cannot be...

Do Startup Accelerators Deliver Value? The Economics of Creating Companies (Part 1 of 2)

Do Startup Accelerators Deliver Value? The Economics of Creating Companies (Part 1 of 2)

Aug 14, 2011

In the last few years, we have seen an explosion of startup accelerators, such as Techstars (est. 2006), Y Combinator (est. 2005), MassChallenge Inc. (est. 2009), and several smaller corporate and venture capital supported groups. Some are for profit, others not-for-profit, some government backed, others private sector backed, and a lot somewhere in the...