ROI of joining a startup accelerator & the best ones in MENA
Since you’re reading my newsletter, you must be into startups. And you probably heard about startup accelerators (or incubators) or even was a part of/applied to one. It’s the MBA for startup founders.
But the question is - is it worth it? Is your startup more likely to succeed?
I got inspired by Andre Retterath’s newsletter and want to share some data driven insights on ROI of startup accelerators, in the context of the MENA, with my selection of accelerators that are worth checking out.
First, let’s make the wording clear
incubator = idea → startup, early-stage, more high broad, to get started
accelerator = startup → company, growing existing product, funding, to scale
venture studios = idea → startup → company, end to end launch and growth support
The facts
Several interesting studies (by D. Games, M. Manconi or J. Woolley) shed light on the impact incubators, accelerators, and venture studios have on startup success. Let’s look at the summary:
Startups in private incubators are 70% more likely to secure venture capital.
Accelerated startups are 3.4% more likely to raise VC funding and raise $1.8 million more on average.
Startups in university incubators and accelerators are over 50% less likely to fail.
Accelerated startups generate higher sales revenue, hire more full-time employees, and pay higher wages.
Industry-specific cohorts lead to greater revenue scaling.
Early-stage ventures benefit from intensive educational programming, while later-stage startups see more advantages from pitching events.
Knowledge-building programs with formal pitching events boost visibility and feedback, contributing to higher VC funding.
Incubated founders report higher well-being and greater capacity to execute but face higher personal opportunity costs.
What to consider before joining:
Assess the fit between the program and the startup’s needs and growth stage.
Weigh the benefits against the equity given up.
Evaluate the program’s track record and follow-on funding rates.
Based on the above points, it looks like accelerators and incubators are a silver bullet, right?
Well, it’s not that simple. Not every program is the same and it’s a completely different story getting to the YC vs a random startup program.
But the fact is that if you want to go the VC route, incubators and accelerators are the easiest and most useful way to get early support and funding, in exchange for a piece of your cake.
If you already have traction and grow your revenue, then you’re better off focusing on your customers and product and if truly needed, involve investors through different channels.
MENA incubators
Now that we’re clear about the ROI and facts, let’s look at the most notable accelerators in the MENA region:
Provides seed funding, mentorship, and strategic networking opportunities to early-stage startups across the MENA region.
A tech ecosystem in Abu Dhabi offering startups access to global markets, funding, mentorship, and community.
Powered by Abu Dhabi Investment Office, running three accelerator programs in the MENA region: Fintech, Healthcare and Industry 4.0.
Saudi based zero equity accelerator program empowering seed-stage tech startups to scale their ventures to the next stages.
Part of the global 500 Global network, it offers funding, mentorship, and support to early-stage startups through their Saudi based Sanabil 500 MENA Seed Accelerator.
Focused on startups building and growing their businesses in the Middle East and North Africa.
Dubai's only VC-backed startup investment program.
TAQADAM is a Saudi-based accelerator founded in 2016 by King Abdullah University of Science and Technology (KAUST) in partnership with SAB.
Obviously there are many more, often industry focused programs, however the above are IMHO considered as the most notable ones.
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Happy startup building and see you next Saturday!
Kristina
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