Global AI in healthcare market expected to rise to $164B by 2030
The market size for 2023 was $10.31 billion
Read more...Last year, we here at Vator did a round up of accelerators and incubators from around the country, including Austin, Chicago, and Boston, as well as some international cities including London, as well as some of the smaller countries in Europe.
It was a good way to see which cities both at home, and abroad, were becoming tech hubs, with their own ecosystems and startup communities to rival Silicon Valley.
But the next question is: just how successful are these accelerators and incubators? Do they actually churn out companies that become notable and disruptive?
Well, there is an easy way to find out: to look at their graduates, how much they have raised and/or how much they are worth. We picked a few of the top accelerators in the country to take a deeper dive.
Techstars, for example, has graduated a total of 292 companies, of which 223 have received a total of $571.8 million. 230 of its graduates are currently active. Another 30 have failed and the other 32 were acquired.
Its companies average over $1.6 million in outside venture capital raised after leaving. The average valuation for Techstars alumni is $4.3 million, or a total of $1.5 billion, the accelerator revealed to me,
Located in Boston, Boulder, Chicago, New York City, Seattle, London, and Austin, Techstars puts $118,000 in each company, through $18,000 in seed funding and an optional $100,000 convertible debt note.
TechStars founder David Cohen will be a keynote speaker at our Splash London event on June 19. We're taking applications now to get the top 10 pan-European and London-based startups in front of him and top VCs. Apply here.
Some of TechStars notable graduates include Sendgrid, which raised $27.3 million; Socialthing, which was acquired by AOL in 2008; DailyBurn, which was acquired by Mindspark Interactive Network in 2010; Cloudability: raised $9.8 million; Contently which raised $12 million; DigitalOcean, which raised $40.2 million, valued at $153 million; and Localytics, which raised $24.8 million
Meanwhile, 500 Startups has graduated over 250 companies from nine cohorts. Of those, none have IPOed, 10 of them have been acquired, and 50, or 20% of them have failed.
The Mountain View-based accelerator gives $50,000 for 5% equity. The accelerator also participates in follow-on investments up to $200,000 for startups that are doing well.
The total value of those 250 graduates is $1.25 billion, for an average valuation of $5 million per company, Dave McClure, founding partner of 500 Startups, told me. That is about a 5 times increase from when the accelerator invests. The total raised for its graduates is roughly $200 million.
Some of notable companies that have gone through include Intercom, which has raised over $30 million; Visually, which has raised over $12 million; Applauze, which raised over $10 million; MindSnacks, which raised $8 million; and Punchd, which was acquired by Google.
Then there is the big dog: Y Combinator, which has, since 2005, funded over 630 startups for a combined valuation of over $20 billion, and a total of $2.09 billion raised, for an average of $3.7 million, I was told.
The company has some very totable graduates, including Dropbox, which has raised $607 million, valued at $10 billion; Airbnb, which has raised $326 million, valued at $2.7 billion; Stripe, which has raised $120 million, valued at $1.83 billion; Optimizely, which has raised $31.2 million; Pebble, which has raised $25.7 million; and Disqus, which has raised $10.5 million
Those six companies alone above have raised $1.1 billion.
The Mountain View-based accelerator gives startups a seed investment of up to $20,000 in exchange for a 2-10% stake in the company.
What does failure mean?
Now let's take all of those numbers together and add them up.
The three accelerators have funded 1,172 companies, which have a combined valuation of $22.75 billion, and total raised of $2.78 billion.
Only 80 of the companies that came out of TechStars and 500 Startups have "failed." Now, for the sake of comparison, it should be noted that what TechStars considers to be a failure is not the same as 500 Startups.
For TechStars, a "failure" is a company that has ceased operations. If it still operating, but has not raised any money, then it has not failed according to that standard.
500 Startups, on the other hand, doesn't just count companies that no longer exist, but also those with a return on investment that is valued at less than 1X. That includes companies with below 1X value acquisitions, "zombie" companies, which are still alive but with little chance of a greater than 1X exit.
Obviously any accelerator program is going to have both failures and successes, but, as you can see, each of these programs have already churned out some very successful companies, with a huge success rate.
Taking a look at the numbers, its hard to see these programs as anything but a success.
(Editor's note: On May 6-7, we'll take a look at accelerators (new and old) at our upcoming Splash Oakland event to learn what's working and what's not and some of the new strategies appearing. We'll have the founders and managing directors of StartX, Alchemist Accelerator, Berkely Skydeck, and SfunCube. Check out the event here.)
(Image source: blogs.kenan-flagler.unc.edu)
The market size for 2023 was $10.31 billion
Read more...At Culture, Religion & Tech, take II in Miami on October 29, 2024
Read more...The company will use the funding to broaden the scope of its AI, including new administrative tasks
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SendGrid's cloud-based email infrastructure relieves businesses of the cost and complexity of maintaining custom email systems. SendGrid provides reliable delivery, scalability and real-time analytics along with flexible APIs that make custom integration a breeze.
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Udemy is a website that enables anyone to teach and learn online. Udemy tries to democratize online education by making it fast, easy and free to create online courses. Udemy is an open platform, so anyone can build an online course by posting videos, presentations, writing blog posts, or hosting live virtual classroom sessions.
Udemy tries to solve a simple problem: there are millions of smart people in the world (authors, speakers, coaches, trainers, subject matter experts and teachers) who want to teach over the internet. Currently, it costs $10,000 to create a website to teach, and there are thousands of instructors doing this (we've talked to them; they hate it). We provide instructors with the ability to create their own course without any up-front costs. That way, they no longer have to deal with the technology and can focus entirely on teaching.
Udemy Live is Udemy’s live virtual conferencing and classroom tool. It is entirely web-based and built on component architecture. Each component was built separately, and there is an internal API so third party developers can build components on top of Udemy’s virtual conferencing tool. The API is not currently public.
Udemy was founded by MobileCrunch writer Gagan Biyani, Eren Bali and Oktay Caglar. Eren and Oktay worked at SpeedDate.com, an online dating site that has received over $8M in funding from Menlo Ventures.
Udemy will start by focusing on a specific niche: Poker education. We will roll out Udemy to enter the $100M business of online poker education. Udemy has deals with more than 15 extremely popular poker instructors to teach on Udemy Poker over the internet. After that niche, Udemy will begin to enter additional markets in which there is a willingness to pay by consumers and a clear set of high-quality instructors interested in teaching.
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DailyBurn is the premier fitness tracking social network. We help people meet their health and fitness goals by finding workout programs, tracking food and nutrition, and connecting them with others for motivation.
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Disqus, pronounced discuss, is a service for blog comments. Disqus enables bloggers to make the conversations on their blogs more interactive and manageable. Our distributed comment system connects readers across blog communities, while empowering publishers in promoting their content.Angel group/VC
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AngelPad is a mentorship program founded by a team of ex-Googlers to help web-technology startups build better products, attract additional funding and ultimately grow more successful businesses.
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Weebly is the easiest way to create and publish a website online.
Adding Content
Content elements, such as videos, pictures, maps, and text are added to your website by simply dragging them from the Weebly bar to your webpage. We have a bunch of cool elements and add more all the time. Are we missing an element you'd like? Suggest it, and we'll include it as soon as we can.
Choosing a Design
Deciding on a look for your website couldn't be easier. Click over to the "Design" tab and you'll see thumbnails pictures of available designs. Hover your mouse over a thumbnail to preview the new look instantaneously or click the thumbnail to select it as the design for your website.
Customizing the Content
Once elements have been added to your page, customize everything just by double-clicking. Double-click a picture to upload a new one, double-click text to change it, or double-click a map to set the address. Rearrange the elements by dragging them into an new order.
Managing your Pages
Adding and organizing your website's pages is completed in the "Pages" tab. When you add new page to your website, it's automatically added to the navigation bar. Reordering pages is simple, just drag and drop them into place.
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Socialthing! was acquired by AOL in 2008, according to the TechStars blog.
Socialthing! is a Boulder, CO based company that is finding new ways to interact with your friends online.Simplifying the management of sites and services that you already use like blogs and social networks, socialthing! synchronizes your personal information, content, and friendships so that you can post this information across the social web, as opposed to just having it contained in a single site.
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Airbnb.com is the “Ebay of space.” The online marketplace allows anyone from private residents to commercial properties to rent out their extra space. The reputation-based site allows for user reviews, verification, and online transactions, for which Airbnb takes a commission. As of June, 2009, the San Francisco-based company has listings in over 1062 cities in 76 countries.
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All your cloud billing in one place.
Cloudability gives you a comprehensive billing view for all the services you’ve got running in the cloud. Add your cloud accounts, set budget limits, and choose notification preferences to take control of your budget.
It’s like Mint.com for the Cloud.
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500 Startups is an early-stage seed fund and incubator program located in Mountain View, CA. They invest primarily in consumer & SMB internet startups, and related web infrastructure services. Their initial investment size is typically $25K-$250K.
Selected areas of interest include financial services & e-commerce, search/social/mobile platforms, personal & business productivity, education & language, family & healthcare and web infrastructure.
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