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Business Growth AcceleratorsAn Overview
 The start of this century has already proven to be an amazing journey for theentrepreneurial inclined. Google, founded in a garage in 1998, had achievedannual revenues of $1.38 billion by the summer of 2005. Myspace (launchedin 2003), Facebook (launched in 2004), YouTube (launched in 2005) allrocketed to unimaginable success in a few short years. There is no question this has helped spawn the highest number of newbusiness launches in US history. In response, hundreds of new collegiateentrepreneurial programs and degrees are now offered. Yet, a classroomeducation only carries entrepreneurs so far……enter the business growth accelerators. First time entrepreneurs arefinding that partnering with “been there, done that” entrepreneurs, access toa full business infrastructure, vested mentoring support, hands on salesupport and a big book of contacts is proving to greatly enhance the odds of rapid success. Growth accelerators surely are not for everyone, but in theright circumstances they may be a perfect fit.
What is a business growth accelerator?
While a few flavors of business growth accelerators exist, they all leveragethe strengths of a business incubator and a venture firm. Growthaccelerators offer varying mixes of business infrastructure, hands onmentoring, micro-financing, and a book of key contacts.
Who are the established growth accelerators?
 Y Combinator is located in both the Bay Area and in Cambridge, MA.Obsidian Launch located in the New York metropolitan area.Lucky Napkin located in Phoenix, AZ.
How do they invest in entrepreneurial businesses and make theirmoney?
 Y Combinator takes an equity position in the startup and makes microinvestments in startup businesses; provides 3 months of intensive hands ontraining; makes key introductions; provides legal assistance.Obsidian Launch takes an incubator’s approach, and does not take equity.Instead it shares in the entrepreneurial business’s profits and “launches” thecompany to continue growth on its’ own at a predetermined threshold(typically 5 years or $5M in revenue). Obsidian provides intensive training;makes key introductions; provides the entire business infrastructure; fundingis provided (but only after certain milestones are achieved).Lucky Napkin takes a varying sized equity position in the startup; providesfunding ; makes key introductions; provides business infrastructure support.
www.ycombinator.comwww.obsidianlaunch.comwww.luckynapkin.com
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