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Know who to talk to, 2017’s seed accelerators ranked

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(ENTREPRENEUR) 2017 seed accelerators were ranked based on a variety of categories and given scores to let start-ups know where to look and who to talk to.

Seed accelerators announced

The Seed Accelerator Rankings Project has just released its 2017 rankings.

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For entrepreneurs considering an accelerator program, SARP’s data is a great resource for comparing relative performance of accelerators.

The rundown

Topping the list are Bay Area accelerators AngelPad and Y Combinator. Second place winners, or Platinum medalists, include The Alchemist, Amplify LA, TechStars, and more. All data used in these rankings is measured as of December 31, 2016.

Hundreds of accelerators have popped up in the past few years, each with vastly different program structures and business objectives.

SARP uses several metrics to determine an accelerator’s overall performance, from achievements and employee happiness to sensitive financial data. The rankings are intended to help guide entrepreneurs in their journey to find the right accelerator for their company.

To rank these accelerators, in addition to confidential hard data provided by accelerators, SARP surveyed founders of startups who graduated from the accelerator programs.

The goal of accelerators is to set startups up for long-term success.

However, because many accelerators have only been around a few years, SARP had to find ways to determine leading indicators of success. This involved interviewing venture capitalists, angel investors, and accelerator program directors to collect data on a comprehensive array of metrics.

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These ranking factors include:

Valuation: This is determined when a firm has a priced round. Mean and median valuations were measured.

Qualified Exit: This happens when a startup issues an IPO or is acquired for more than $5 million above the amount of capital they’ve raised.

Qualified Fundraising: This refers to when a startup raises at least $200K in funding, and is an early indicator of potential for long-term success. Ranking took into consideration the percent of alumni companies that had a qualified raise within 12 months of graduating, the percent that have had a qualified raise to date, and the mean and median amounts raised by these two time periods.

Survival: This is the percentage of startups still in business. Since startups are volatile by nature, SARP considered survival at 12, 24 and 36 months after a program end. This controversial metric was weighted lower than others.

Founder Satisfaction: This was measured using a survey of entrepreneurs who have graduated from the accelerator programs, asking them if they would repeat the program and whether or not they would recommend it to a friend. Responses were calculated via the Net Promoter Score (NPS) method: a 0-10 scale that determines Promoters, Detractors and Passives. An NPS score is the percentage of promoters minus the percentage of detractors.

Alumni Network: This refers to the number of startups that have graduated from the accelerator program. A large alumni network supports future business development and can significantly contribute to a startup’s progress and long-term success.

Fair measurements

SARP weighted metrics within categories, then weighted the categories to determine overall scores.

For increased accuracy, scores were adjusted to account for the various stages companies were in upon entering their accelerator program.

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