Betaspring and the Startup Accelerator Movement

Name: Betaspring and the Startup Accelerator Movement (English version)
SKU: 9B15M125

Michael A. Roberto; Matthew Los Kamp

Product #:9B15M125

Supplier:Ivey

Discipline:Entrepreneurship, General Management

Setting:United States, 2014

Details:Case (PDF) • 14 pages • 2015-12-21

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Betaspring was a mentorship-driven startup accelerator program for technology and design entrepreneurs. Founded in Rhode Island in 2009, it was one of the highest-ranked and longest-operating accelerators in the United States and was notable for being headquartered outside Silicon Valley. However, debate had emerged about the value provided by accelerators, and in August 2014 Betaspring faced two crucial strategic questions. Had a bubble emerged in the accelerator industry? If so, should Betaspring change its business model in order to survive a potential industry shakeout?

Learning Objectives

This case is well-suited for courses in entrepreneurship taught at both the undergraduate and MBA levels. It provides an in-depth examination of the startup accelerator movement and has four principal learning objectives:

To learn about the accelerator movement in order to analyze the structure and attractiveness of an industry that has propelled firms like Airbnb and Dropbox.
To learn about the processes and systems employed by accelerator programs to foster successful startups.
To introduce the concept of an entrepreneurial ecosystem.
To learn about the lean startup methodology and the tensions that startups face as they pursue this approach.

Betaspring and the Startup Accelerator Movement

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Learning Objectives