The Effect of Accelerators and Venture Studios on Startup Performance

Abstract

This master thesis aims to explore how accelerators and venture studios in Norway contribute to the performance of startups, focusing on the practices and methodologies that drive their success. Our study addresses the well-documented high failure rates of startups by examining the structured programs and resources provided by these entities to mitigate risks and boost startup outcomes. Despite the significant potential of accelerators and venture studios, there is limited research on their specific impact on early-stage startups, particularly in relation to venture studios. We conducted a qualitative exploratory study involving multiple case studies of six different accelerators and venture studios. Through semi-structured interviews with program managers and entrepreneurs, we identified key strategies such as standardized processes, customized support, market validation techniques, robust network building, effective team and screening practices, and strategic investment approaches. Our findings, among other things, reveal that while standardization offers efficiency, customization is crucial for addressing startups' unique needs, especially during their early phases. Building the right team and conducting thorough screening are essential, alongside robust network building, which provides valuable connections and mentorship. Another crucial aspect is how accelerators and venture studios provide and facilitate funding, enabling startups with the necessary runway to develop their products, refine their concepts, and achieve critical milestones. This study contributes to the existing literature by offering a nuanced understanding of how accelerators and venture studios improve startup performance, with implications for founders, program designers, and policymakers in the entrepreneurial ecosystem. Keywords: accelerator program, venture studio, startup performance, entrepreneurship, team building, screening, market validation, startup success, failure, knowledge sharing, peer-to-peer, early-stage startups, network building, standardized process, customization, timing, funding.