In the past twenty years, global accelerator programs (falling within Pitchbooks criteria) have increased from less than 100 to nearly 1,000. The obvious reason for this huge growth is that: 1. accelerators have a proven track record of helping startups succeed 2. the startup universe has grown exponentially and thus the need for hands-on development is enormous. Ranking this huge group of accelerators is quite difficult as there are numerous metrics to take into consideration, many of which are hard to quantify–brand value, for instance. In Pitchbooks study, they chose to rank this list of accelerators based on the following fundraising-centric metrics:
Proportion of companies that went on to raise a follow-on round.
Proportion of companies that went on to raise each successive follow-on round.
From the first graph above, you can see that MassChallenge, despite taking no equity in its startups and being industry agnostic, is ranked third overall with more than 70% of our funded companies receiving follow-on funding–wow! The second graph above, based off of metric #2, is more granular and uses a holistic approach to highlight the obvious fact that each successive fundraising round is increasingly difficult to attain. If you have the laser-vision of a hawk you might notice that 10% of funded MassChallenge companies are receiving four post-seed rounds, leading the pack! These are two fantastic statistics that we hope to maintain as MassChallenge continues to expand both its geographical services and no strings attached value proposition.
Reporting service Compass compiled its annual Global Startup Ecosystem rankings for 2015 and included in the top six with Boston, Tel Aviv and London coming in 4th, 5th, and 6th, respectively. Whats the common denominator here? MassChallenge has programs in Boston and London and Israel. While the various performance rankings are all over the board, Boston, London and Tel Aviv all score very high in perhaps the most important metric–the Growth Index. MassChallenge is focused on global expansion as a prime initiative and this chart is a testament to the success of our ongoing growth story and plan to open up shop in ten new cities within the next five years. Lastly, another indication of MassChallenges macro impact on the success of its three locations is apparent in the exit growth metrics (startups that have been acquired or IPOd) with Boston at 1.5x average, and both Israel and London at 2x+ the average exit growth over the past three years.