Recent years have seen the rapid emergence of a new format of corporate-startup engagement: the corporate accelerator program. This format aims to support early-stage ventures to overcome their initial challenges, while fostering corporate innovation within established firms. Extant literature has emphasized the importance of networking for entrepreneurs to increase their chances of survival. Accordingly, networking opportunities constitute a major reason for startups to join an accelerator. To date, research on corporate accelerators has remained scarce and left it unclear how networking happens in this context.
This thesis sheds light upon why and how startups network within corresponding programs and explores the implications of corporate accelerators on entrepreneurial networking. An inductive, multiple case study of six startups that graduated from different programs in Germany was performed. The results revealed four mechanisms that corporate accelerators provide to foster networking: pitch events, expert mentoring, referrals and physical proximity. These mechanisms were used differently given the participants’ stage of product development and prior network support. Interestingly, an initial exploratory study unveiled two distinct types of corporate accelerators: “innovation vehicle” and “investment vehicle” programs.
The type of program appeared to shape the configuration of the four mechanisms and thus the opportunities and possible networking outcomes for participating startups. In general, corporate accelerator programs seem to increase intensity, efficiency and successfulness of startups’ network tie formation. This study enhances the theoretical understanding of corporate accelerators and contributes to the literature on entrepreneurial networking. It further provides valuable insights for program operators and potential startup participants.
Table of Contents
1. INTRODUCTION
2. LITERATURE REVIEW
2.1 The Potential and Liabilities of Entrepreneurial Ventures
2.2 The Emergence of Corporate Accelerator Programs
2.3 The Importance of Networks for Entrepreneurs
2.4 Entrepreneurial Networking
3. METHODOLOGY
3.1 Research Approach
3.2 Case Selection and Data Source
3.3 Data Collection
3.4 Data Analysis and Structure
4. RESEARCH FINDINGS
4.1 Networking Intentions within Corporate Accelerator Programs
4.1.1 Increased Visibility and Business Network Reach
4.1.2 Expert Knowledge and Business Support
4.1.3 Initiation of an Incumbent Firm Collaboration
4.2 Networking Mechanisms within Corporate Accelerator Programs
4.2.1 Pitch Events
4.2.2 Expert Mentoring
4.2.3 Referrals
4.2.4 Physical Proximity
4.3 The Impact of Corporate Accelerators on Entrepreneurial Networking
4.3.1 Bridging Function and Tie Formation Push
4.3.2 Efficient Match-Making
4.3.3 Enhanced Startup Legitimacy and Credibility
5. DISCUSSION
5.1 Why and how do startups network in corporate accelerator programs?
5.2 How do corporate accelerators impact entrepreneurial networking?
5.3 Theoretical Implications
5.4 Managerial Implications
6. CONCLUSION
Research Objectives & Key Themes
This thesis aims to understand the role of corporate accelerator programs in fostering entrepreneurial networking for early-stage startups. By exploring the intentions of participating ventures and the mechanisms provided by these programs, the research examines how accelerators bridge the gap between startups and corporate environments to facilitate valuable new ties.
- Intentions of startups to engage in networking within corporate accelerators.
- Mechanisms such as pitch events, expert mentoring, referrals, and physical proximity.
- The impact of accelerator programs on network efficiency and startup legitimacy.
- Differences between "innovation vehicle" and "investment vehicle" program types.
- Moderating effects of startup venture stages on networking outcomes.
Excerpt from the Book
4.2.1 Pitch Events
Startups use short, well-prepared pitches to raise awareness, explain their idea and product as well as to convince others of the venture’s potential. To provide startups with the opportunity to train their pitches and thereby reach many potentially interested actors, corporate accelerators were found to arrange regular pitch occasions:
“There are weekly public pitch trainings every Tuesday evening to which different people were invited and apart from those theoretically everyone could come there…you have regular pitches, where you present what you are doing…and [the accelerator] thereby opens up the possibility to also pitch in front of people from the industry.” (Analytics)
For startups in a comparably early stage, pitching on regular, smaller occasions was especially useful to share their ideas with various, diverse actors and experiment how to present it in the most convincing way, while the later-stage startups primarily valued opportunities to pitch in front of particular industry executives to raise their interest in investing or collaborating. The smaller, regular pitch occasions were complemented by larger organized pitch events. These events were either intended for startups to present themselves in front of internal and external C-level executives or to sell the idea to potential investors. The latter mainly occurred during the large-scale “demo day” at the end of each program which helped participating startups “to be in everyone’s heads” (Automotive). Startups’ personal pitches enabled them to raise awareness and interest and to get in contact with the audience afterwards. Besides exchanging thoughts, startups used these opportunities to receive many contact details for further business engagements, as the statement from Analytics illustrates:
“Then there is the demo day at the end of the program, where you present your elaborate pitch again in front of 200 investors and then afterwards you come in contact with them and exchange...if it goes well, you will go home with a pile of business cards.”
Summary of Chapters
1. INTRODUCTION: Outlines the rise of corporate accelerator programs as a bridge for startup-corporate engagement and sets the research questions regarding their role in entrepreneurial networking.
2. LITERATURE REVIEW: Examines the challenges faced by startups, the theoretical foundations of network theory, and how prior research has addressed entrepreneurial networking.
3. METHODOLOGY: Details the inductive, multiple case study design used to analyze six startup graduates from German corporate accelerator programs.
4. RESEARCH FINDINGS: Presents empirical results on networking intentions, the four key mechanisms utilized, and the observed impacts on startup networking activities.
5. DISCUSSION: Synthesizes the findings into a conceptual model and derives theoretical and managerial implications regarding the moderators of venture stage and accelerator type.
6. CONCLUSION: Summarizes the study’s contributions, acknowledges limitations, and provides directions for future longitudinal research on corporate accelerators.
Keywords
entrepreneurship, corporate accelerator programs, networks, entrepreneurial networking, corporate innovation, startup success, innovation vehicle, investment vehicle, tie formation, mentoring, pitch events, referrals, social proof, legitimacy, business support
Frequently Asked Questions
What is the core focus of this research?
The research investigates how corporate accelerator programs support early-stage startups in building valuable business networks, specifically exploring the intentions behind networking and the mechanisms used within these programs.
What are the primary themes discussed in the thesis?
Key themes include the networking strategies of startups, the role of accelerator programs as network brokers, the impact of these programs on startup legitimacy, and the moderating influence of program types and startup maturity.
What is the primary objective of this study?
The main objective is to provide empirical insights into why startups network within corporate accelerators, how they execute these activities, and the specific impact these programs have on their network development.
Which scientific methodology was applied?
The study utilized an inductive, multiple case study design, conducting in-depth semi-structured interviews with startup founders and corporate accelerator representatives in Germany.
What does the main body cover?
The main body covers a comprehensive literature review, the methodological framework, the detailed presentation of research findings regarding networking intentions and mechanisms, and a discussion of the resulting conceptual model.
Which keywords best characterize this work?
The work is characterized by terms such as corporate accelerator programs, entrepreneurial networking, innovation vehicle, investment vehicle, social proof, and business network reach.
How do "innovation vehicle" and "investment vehicle" programs differ in their networking focus?
Innovation vehicle programs prioritize bridging startups to the incumbent firm for collaborative projects, while investment vehicle programs focus on connecting startups to a diverse set of external investors and partners to drive growth.
What is the "bridging" function of corporate accelerators?
It refers to the accelerator's role as an intermediary that connects startups with valuable, hard-to-access actors, such as large corporate executives or selective investors, who would otherwise be out of reach for early-stage ventures.
How does physical proximity influence networking in these programs?
Physical proximity within co-working spaces fosters a close-knit community among startups, enabling spontaneous knowledge sharing, peer-to-peer support, and incidental networking opportunities with visitors.
Why is "social proof" significant for startups in this context?
Affiliation with an established, well-known incumbent firm acts as a signal of quality and credibility, which helps startups overcome initial liabilities of newness and trust barriers when approaching other potential business partners or investors.
- Arbeit zitieren
- Vanessa Ostertag (Autor:in), 2017, Corporate Accelerator Programs. Supporting Startup Success by Fostering Entrepreneurial Networking, München, GRIN Verlag, https://www.grin.com/document/450743
