Acceleration Best Practices
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The document discusses best practices for accelerators in Southeast Asia, detailing the differences between accelerators and incubators, as well as different types of accelerators and their investment models. It covers the historical perspective of accelerators, their success rates, and factors for start-ups to consider when selecting an accelerator. The facilitator, Douglas Abrams, has extensive experience in venture capital and entrepreneurship, actively engages in seed funding, and serves as an advisor and educator in the region.
Acceleration Best Practices
- 1. July 2016 Acceleration Best Practices in Southeast Asia Douglas Abrams
- 2. 2 6XXXX Douglas Abrams About the facilitator • Wharton MBA • JP Morgan – Vice President IB Technology, GM Internet Marketing • Parallax Capital Mgmt – Co-founder and MD Private Equity • Extream Ventures – Co-founder and MD S$20 million seed fund • Expara – Founder and MD IDM Ventures Incubator, advisory, training • NUS – Adjunct Associate Professor, Business School, Entrepreneurship, Sasin – Visiting Professor, Venture Capital
- 3. 3 6XXXX Douglas Abrams Regional accelerator plus VC fund Ho Chi Minh City Tokyo Kuala Lumpur Singapore Bangkok
- 4. 4 6XXXX Douglas Abrams Accelerator versus incubator Provide start-ups with mentorship, network, space and support Open application process Time-limited or open-ended May or may not invest Business model: fees (plus investment returns) May or may not have demo day Incubator Provide start-ups with mentorship, network, space and support Competitive application process Time-limited and batch based Invest in start-ups Business model: investment returns Demo day Accelerator
- 5. 5 6XXXX Douglas Abrams Types of accelerators • Venture accelerator – focus on financial return • Corporate accelerator – strategic/financial return • Sector-specific accelerator – healthcare, fintech • Accelerator plus VC fund – post-graduation investment • Others: co-working spaces, start-up academies
- 6. 6 6XXXX Douglas Abrams Accelerator investments • Initial investment - $10K - $50K for 5-10% equity • Equity, convertible note, SAFE or equivalent • Post-graduation investment - $250K-$500K for 10-25% equity • Provided by accelerator plus VC and/or by affiliated investors
- 7. 7 6XXXX Douglas Abrams Accelerators in the funding process Founder’s Capital Seed/ Angel Series A, B, C Mezzanine Pre-exit Exit OM F,F&F Accelerators Incubators Seed funds VCs VC hurdle rates 60-100% 40-60% 20% R&D Establishment GTM/Rollout Accelerated Expansion Maturity Enablement growth PE, Financial institutions
- 8. 8 6XXXX Douglas Abrams Accelerators – historical perspective 1960 1970 1980 Riskcapital Brands 1990 Emergingfocused International Superangel/ MicroVC Accelerators Platform Costofstartingatechnologystartup Numberofseed-fundeddeals
- 9. 9 6XXXX Douglas Abrams Success rates of accelerators 2015 Global Best Practices Report on Incubation and Acceleration - Capria Ventures LLC
- 10. 10 6XXXX Douglas Abrams Success rates of venture-funded startups 10 years after investment. Data from Sand Hill Road Econometrics. Companies received first financing before 1 January 1999. First non-seed round investment. Returns are gross - before fees and carry
- 11. 11 6XXXX Douglas Abrams Accelerator success rates by type
- 12. 12 6XXXX Douglas Abrams Factors for start-ups selecting an accelerator • Venture or corporate • General or sector-specific • Size of investor network • Integration with and access to the community • Track record of successful fundraising by previous batches
- 13. 13 6XXXX Douglas Abrams Contact us • Douglas Abrams • Expara – dka@expara.com – www.expara.com • You can also contact me on: – Facebook, Linked-In, Line, Whatsapp, WeChat • Singapore mobile: 65-9780-5381 Singapore HQ Block 71 Ayer Rajah Crescent #$02-10/11 S139951 Regional offices: Bangkok, KL, HCM, Tokyo