Simon Willison’s Weblog

Do all incubators / accelerators welcome their startups getting funding?

24th November 2013

My answer to Do all incubators / accelerators welcome their startups getting funding? on Quora

Yes. The goal of incubators and accelerators is to obtain a small amount of low-cost equity in promising companies and then help them grow and reach their potential.

For almost all companies, that means raising more outside finance.

Since startup company valuations almost always increase when they raise more money, any time a company raises represents an increase in the value of the equity held by the accelerator.

Accelerators often use “amount of money raised by our companies” as an indicator if how well they are doing—in combination with “total valuation of our companies”. Check out this recent YC story for example: http://techcrunch.com/2013/10/25...