Corporate Accelerators

•  Techstars was running 49 accelerator programs in 35 cities in 16 countries in July 2019.
• The program will require a “multi-year commitment” from partners, which includes an annual accelerator event with 10 carefully selected startups.
• The program begins by working closely with Techstars to hire a Managing Director from Techstars’ network and working on identifying and defining the corporate’s challenges, needs, market, and establishing Key Performance Indicators, KPIs to align the right innovation and disruption.
• Then Techstars will lead the search for startups, through a 2-month window for applications and interview to select 10 startups that will participate in the 3 months/ 13 weeks mentor-driven accelerator program.
• Selected startups will receive a $120,000 investment with a 6% stake in equity, which may be split into 4% by Techstars and 2% by the corporate partner.
• They will also receive intensive mentorship from leaders from the corporate partner and Techstars alumni.
• During the program, the selected startups will move to the city which their corporate partner is based in, and can work either in Techstars’ location or the corporate partner’s headquarters.
• Corporate partners are advised to work closely with the selected startups, providing tools, equipment, facilities and opportunity to try out their solutions directly in day-to-day operations throughout the 3 months.
• The program ends with one or even two demo-day(s), either private within the corporate or by an invitation to their network of industry leaders or press.
• While official costs of such accelerator programs are not made public, several unverified sources put a range between $1.0-2.5 million per accelerator, depending on location.
• Corporate partners invest in such programs to have the first chance to observe potential innovations or disruptions in areas of interest that they would have missed otherwise. They also have the prerogative to invest or not in the 10 startups with no obligation from either party.
• Some in the industry see such corporate accelerator programs to be a more cost-effective initiative to drive innovation compared to traditional research and development (R&D) if strategic motives and company structure are aligned. This is mainly because of the much reduced time and cost of experimentation compared to a decade ago.

Innovation Bootcamps

•  Innovation Bootcamps were introduced by Techstars in September 2018.
• Different from the accelerator program, innovation bootcamps focuses on internal innovation by empowering employees in large corporations to drive innovation.
• This is done through a 3-day/ 54-hour event where cross-functional teams are formed, and then mentored and practice startup methodologies to build solutions.
• In the end, teams will pitch business innovations to a panel of judges comprising Techstars experts and corporate partner leaders to select innovations that are best to be further advanced.
• Some companies extend the Bootcamp to a 6-week program where selected projects were accelerated by allowing the teams to work on their ideas on 50% of company time.
•  Techstars will provide mentorship, training sessions, and product development approaches from expert Techstars facilitators.
• Participating employees get to develop new tools and frameworks while growing with the company.
• Equinor, one of the corporation partners observed three key benefits of the program, exposing employees to startup culture, rapid assembly of meaningful innovations ready to be invested, and a stronger engagement between the innovation and business teams.
• Official costs of such innovation bootcamps from Techstars are not made public.

Techstars Studio

•  Techstars Studio was introduced in January 2019.
• The program will develop and launch venture-scale businesses with the support of corporate partners targeting specific areas of interest within their industry.
•  Individuals/ corporate partners may choose to submit ideas/ concepts that they’d like Techstars to work on.
• Selected ideas will be refined by Techstars’ network of entrepreneurs. After that, a vendor within their global network will be selected to build the product.
• Different from the accelerator program, Techstars Studio will contribute the team and budget to startups at the concept stage and directly participate in validating, building and launching the venture.
• Applying founders/ corporate partners will enjoy the convenience, speed to market, unlimited capacity to build, and an enormous proven entrepreneurial talent network.
• In exchange, they might have to give up IP ownership and a considerable stake in the new venture.
• Each participating corporate partner will pay an annual membership fee to have an early look and receive updates at Techstars Studio projects.
• While Techstars plans to launch four to five startups from its Studio program this year, they have not disclosed how long the program took from concept to launch of the venture.
• Official location and costs of Techstars Studio from Techstars are not made public.

Network Engagement Program

•  Network Engagement Programs were introduced in September 2018.
• The program is designed to connect corporate partners with startups for potential collaboration opportunities in various stages of identifying internal challenges, implement proof-of-concept solutions, scale new technologies and expand their portfolios.
• A dedicated Network Engagement Manager will help corporate partners research, engage, and invest in the world’s most promising startups aligned with predefined strategic goals, innovation metrics, and KPIs.
• If proven, then corporate partners may choose to collaborate, invest, merge, or acquire startups.
• Companies like QBE are leveraging on Techstars’ proven network of promising startup founders and inject initial investment, business development, and mentoring to help them grow.
• No official information on costs, program length, and location of the program can be found.

Network sponsorships/ partnerships

• Corporate partners can choose to partner/sponsor events that are organized by Techstars like Startup Weekends and Startup Weeks.
•  Startup Weekends are programs similar to Innovation Bootcamps but are open to the public instead of internal employees only.
•  Startup Weeks are five-day events that feature speakers and topics curated by local organizers to motivate and inspire the local entrepreneurial community in different cities. Participants of Startup Weeks look to gain education, useful connections and a supportive network that can help them succeed.
• Techstars promote that such events can help develop a corporate partner’s network and the local community, drive customer acquisition and brand awareness.
• To date, Techstars had organized Startup Weekends in 630 cities including in headquarters of companies.
• The official costs of such partnership/sponsorship with Techstars are not made public.

Research Strategy

#1: Startupbootcamp

Annual Revenue

• Startupbootcamp generates an estimated $60 million in revenue annually.

Corporate Innovation Practice Programs Offered:

• The company currently has more than 20 industry-focused programs for global startup accelerators and corporate innovation.
• Startupbootcamp’s global startup accelerators and corporate innovation has accelerated 831 startups, with an average funding of €1.007 million and a total funding of €689 million.
• In 2018, Startupbootcamp InsurTech hired a "managing director for corporate innovation in insurance" to spearhead the development and release of a brand-new assortment of corporate innovation services and products.
• Startupbootcamp's parent group also handles Innoleaps' corporate innovation services.
• The company launched their ItalianTech acceleration program, with a similar agenda.
• Under the ItalianTech acceleration program, the company provides productive programs for corporate innovation and acceleration, and it expects that engaged startups will profit from an experience that is transformative and extraordinary.

#2: 500 Startups

Annual Publicly Available Revenue:

• 500 Startups generates an estimated $45 million in revenue annually.

Corporate Innovation Practice Programs Offered:

• The company claims that more than three-fourths (81%) of corporate innovation programs report that under "a quarter of their startup engagements resulted in commercial deals," and they aim to resolve this with their unique positioning for their corporate partners.
• 500 Startups concentrates on corporate innovation by analyzing around 500 of the largest public businesses in the world, along with the companies' Corporate Startup Engagement (CSE) practices.
• The company’s corporate innovation crew collaborates with existing businesses by offering recommendations on strategy, developing capacity to execute pilots, and linking corporations with suitable startups in their regions and verticals.
•  VC Unlocked is another initiative of the company, which investigates how larger companies can collaborate with startups and craft top-notch programs for corporate innovation.
• The company has invested in more than 2,000 startups throughout over 60 nations since the year 2010.

#3: Society3

Annual Publicly Available Revenue:

• San Francisco Accelerator, also known as Society3, generates an estimated $7.7 million in revenue annually.

Corporate Innovation Practice Programs Offered:

• The company initiates innovations paradigm workshops for two segments, namely public workshops available to anyone and company workshops specifically designed for organizations exclusively.
• The public workshops can be attended for $195 per person and runs for three days. Meanwhile, the company workshops fee starts at $10,000 per day (plus accommodation and travel) for five days.
• Additionally, it offers an enterprise innovation strategy workshop, which is targeted at top executives (c-level executives and board members) and starts at $15,000 per day (accommodation and travel) for one day.
• It also runs a corporate innovations accelerator, which includes a Corporate Innovation Boot Camp and the Market Storm Program that lasts for nine months.
• Following the conclusion of the Corporate Innovation Boot Camp, groups are able to begin the company's Market Storm Program.

Research Strategy: