LG has announced the winners of its Global Ambassador Challenge in South Africa, marking the first time locals have received grants and titles as…
Looking for some big money in exchange for support and recognition? You could try a business accelerator. In all 19 South African and international accelerators tracked by Ventureburn have so far this year given out a total of $17-million in funding to 1 241 startups. At about $37 000 per startup that isn’t anything to sniff at.
South African startups were eligible to apply to all 19 accelerators (see below table and graph for more details).
Of the 19 accelerators, the Techstars Anywhere Accelerator virtual programme gave out the highest amount in funding — at $120 000 per selected startup ($100 000 of this is in the form of a convertible loans and $20 000 is in exchange for six percent in common stock).
This is followed by the World Food Programme’s Innovation Accelerator — which this year gave out $100 000 in funding per startup — which is perhaps an even better bet because participants weren’t required to give up any stake in their business. The German-based Merck Accelerator provided $60 000 in zero-equity funding.
A number of accelerators did not provide startups with any funding — such as South African New Economy Accelerator and XL Africa which instead assist startups to secure investment.
Of the 19 accelerators, the Techstars Anywhere Accelerator virtual programme gave out the highest amount in funding – at $120 000 per selected startup
Some accelerators offered web services in addition to funding — such as the Peacetech Accelerator based in the US, which offered about $50 000 in Amazon Web Services credits.
Prepare to give away five percent
Although the majority of the accelerators Ventureburn has tracked this year were zero-equity accelerators, those that did take a stake in the startups they assist usually opted to take equity of about five percent (see the below graph and table).The accelerator that took the highest equity stake in startups is Startupbootcamp Cape Town which required each participant to give up an eight-percent stake in exchange for $18 000 in funding. The I’M IN Accelerator has asked for the small stake — between 1.25% and six percent, in return for between R150 000 and R160 000 in funding.
Of those accelerator initiatives Ventureburn tracked, the Tony Elemulu Foundation entrepreneur programme offered the highest number of places for applicants — at 1000. However don’t be too sure you will get a place. In all over 93 000 applied for a spot for this year’s cohort.
Other accelerators took in far fewer startups. Y-Her — an Australian accelerator for women entrepreneurs — offered funding to just two startups per cohort.
While the average accelerator programme in 2017 ran or was due to run for, about 17 weeks, the shortest was a week-long by Y-Her Accelerator. The New Economy Accelerator and the South Korean Global Accelerator Programme for Startups (GAPS) were the longest programmes Ventureburn tracked, both running for 43 weeks.
Next time you read about a call to applications, you might want to click on that learn more link. Who knows, it could prove beneficial for you and your startup.
Read more: Applications open for second cohort of Techstars Anywhere Accelerator
Read more: Startupbootcamp receives 518 applications for first Cape accelerator
Read more: I’M IN Accelerator finally under way, here are the startups in the first cohort
Read more: Here are the 20 startups that will take part in accelerator XL Africa’s first cohort
Read more: Tony Elumelu Foundation selects 1000 African entrepreneurs for programme
Read more: Korea opens applications for 50 startups to join global accelerator
Read more: One week left to apply for World Food Progamme Innovation Accelerator
Read more: Last day to apply to 2018 Merck Accelerator for health, biotech startups
Featured image: Andrew Hyde via Flickr (CC 2.0 BY-SA, resized)