Find the Right Midwest Accelerator to Grow Your Startup
In the last few days, a lively discussion over accelerators has cropped up, with industry thought-leaders like Sam Altman warning entrepreneurs to pick just one really strong accelerator and actually accelerate their companies, and others arguing that entrepreneurs can benefit from trying out multiple accelerators, so long as the fit is right each time. In this discussion, Sam and those on the other side of the argument are talking about accelerators where the organization provides capital and intensive resources in a structured program in exchange for equity stake in a startup.
Our stance on accelerators is the same as our stance on investors — you need to find the right match to truly benefit your startup. Finding that match is often the hardest part; building relationships is hard, especially when what hangs on the line is the future of your company. So we thought we’d start you off by providing a snapshot of some of the accelerators here in the Midwest: what they look for, how they help their companies, and where they are. This is by no means a comprehensive list, but it includes a diverse set of options with unique benefits and structures.
Capital Innovators
Location: St. Louis, MO
Cohorts Per Year: 2
Program Duration: 12 weeks
Niche: Technology-oriented companies (web-based, mobile, or other software-as-a-service)
Benefits: Portfolio companies have a long lifespan; robust mentor and alumni networks
Notable News: Currently ranked as the #9 accelerator in the country
CoolHouse Labs
Location: Ann Arbor, MI
Cohorts Per Year: 2
Program Duration: 12 weeks
Niche: Early-stage technology startups; free housing and office space
Benefits: Invests as an accelerator but also does seed-stage investments
Notable News: Launched a summer program on the Michigan lakeside
The Brandery
Location: Cincinnati, OH
Cohorts Per Year: 1
Program Duration: Four months
Niche: Branding, marketing, and design
Benefits: Key relationships with corporations; entrenched in the investment ecosystem with $120M raised across 56 companies and a robust investor network
Notable News: Currently ranked as the #13 accelerator in the country
Gener8tor
Location: Milwaukee and Madison locations
Cohorts Per Year: 2
Program Duration: 12 weeks
Niche: Software, IT, web, software-as-a-service, e-commerce and hardware
Benefits: Individualized attention with cohorts of 5 or less; Over 85% of gener8tor’s alums have raised more than $250,000 in follow-on financing
Notable News: Currently ranked as the #14 accelerator in the country
TechStars
Location: Various including Chicago
Cohorts Per Year: 1 in Chicago (11 elsewhere)
Program Duration: 3 months
Niche: Tech-enabled companies
Benefits: Over 2,000 mentors; over $1M in key benefits like web hosting, travel, and more
Notable News: Currently ranked as the #3 accelerator in the country
University of Chicago New Venture Challenge
Location: Chicago, IL
Cohorts Per Year: 1
Program Duration: Varies depending on who moves forward in the competition
Niche: Companies founded and led by at least one University of Chicago graduate student
Benefits: 100+ companies still in business and a stellar track record of $3B in mergers and exits; Alums and judges from Braintree, Grubhub, Bump, and more
Notable News: Currently ranked as the #4 accelerator in the country and the #1 university accelerator in the country
Accelerators are not for everyone. If you don’t need one to accelerate, you’re in a great position and you should keep riding the wave of the success. If you do want to be part of one, do your homework. Meet the mentors, talk to alums, track the success metrics, and most of all, determine if their strengths could help you build out your startup’s.
Photo via CoolHouse Labs.
This post is part of the Hyde Park Angels Entrepreneurial Education Series, which brings together successful, influential entrepreneurs and investors to teach entrepreneurs everything they need to know about early-stage investment through events, articles, videos, and more. If you are interested in learning more about similar topics, register for “When to Raise Venture Capital or Bootstrap” on March 3.