Start‐up Accelerators as Service Design and Business Model

Abstract

AbstractStartup accelerators offer a range of services to entrepreneurs that enable them to accelerate growth and development in just a few months. Typically, small‐, and medium‐sized, growth‐oriented companies are supported early in their development through offers of education and training, mentoring, consulting, and venture capital. The startup accelerator “Growth Train” of Business Lolland‐Falster – a regional development organization in Denmark, has been the subject of a closer investigation as a service journey and business model. Four distinct factors make accelerators unique: time‐limited, cohort‐based (a standard course for a selected group), mentor‐driven, and typically ends with a ‘demo day’. The analysis of Growth Train is based on Service Design Thinking and theories on Business Models. It contributes to the theoretical understanding of startup accelerators as a service journey for the participating startups where Service‐Design Thinking plays a crucial role in the design of the accelerator. It also explains how the accelerators create value for the selected group of startups. Startup accelerators also represent a Business Model (value proposition) for the managers of the accelerators and the stakeholders in the local business ecosystem. It also offers economic growth and employment for outlying areas like Lolland‐Falster in Denmark.