Accelerators and the Regional Supply of Venture Capital Investment

40 Pages Posted: 5 Nov 2014  

Daniel C. Fehder

Massachusetts Institute of Technology (MIT)

Yael V. Hochberg

National Bureau of Economic Research (NBER); Rice University - Jesse H. Jones Graduate School of Business

Date Written: September 19, 2014

Abstract

Recent years have seen the rapid emergence of a new type of program aimed at seeding startup companies. These programs, often referred to as accelerators, differ from previously known seed-stage institutions such as incubators and angel groups. While proliferation of such accelerators is evident, evidence on efficacy and role of these programs is scant. Nonetheless, local governments and founders of such programs often cite the motivation for their establishment and funding as the desire to transform their local economies through the establishment of a startup technology cluster in their region. In this paper, we attempt to assess the impact that such programs can have on the entrepreneurial ecosystem of the regions in which they are established, by exploring the effects of accelerators on the availability and provision of seed and early stage venture capital funding in the local region.

Suggested Citation

Fehder, Daniel C. and Hochberg, Yael V., Accelerators and the Regional Supply of Venture Capital Investment (September 19, 2014). Available at SSRN: https://ssrn.com/abstract=2518668 or http://dx.doi.org/10.2139/ssrn.2518668

Daniel C. Fehder

Massachusetts Institute of Technology (MIT) ( email )

77 Massachusetts Avenue
50 Memorial Drive
Cambridge, MA 02139-4307
United States

Yael V. Hochberg (Contact Author)

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Rice University - Jesse H. Jones Graduate School of Business ( email )

6100 South Main Street
P.O. Box 1892
Houston, TX 77005-1892
United States

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