Impact accelerators boost investment unless…

2 min read · August 8, 2025
New Power Labs

Impact-oriented accelerators promise to boost early-stage ventures by opening doors to capital. Research confirms they can work, just not for everyone.

A quantitative study by Lall, Chen, and Roberts (2020) examined a global dataset of 1,647 entrepreneurs who applied to 77 impact-oriented accelerators between 2013 and 2016. The researchers constructed a detailed profile of each venture’s characteristics, performance metrics, and founder background before program participation, then compared funding outcomes in the following year. This approach allowed them to isolate the effect of accelerator participation on subsequent equity investment.

While graduates often see increased investment, the benefits are concentrated in developed markets and among male-led teams. Women founders and those in emerging markets don’t experience the same capital lift. In fact, having a woman on the founding team is linked to lower equity investment after the program.

The problem isn’t just geography or founder profile – it’s structural. Accelerators may expand networks and polish pitch decks, but they aren’t dismantling the investor bias and market barriers that keep overlooked entrepreneurs on the sidelines.

For funders and program designers, the takeaway is clear: if accelerators want to live up to their “impact” label, they need to confront inequity head-on. That means designing support that works in different market contexts, connecting founders to aligned capital, and tackling the systemic filters that decide who gets funded.

Until then, accelerators will keep speeding up those already close to the starting line, while leaving others stuck at the gate.

Narinder

New Power Labs

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