The globalized digital economy creates constant opportunities and demands for startups. Unfortunately, the business environment that encourages the birth of startups immediately subjects them to a relentless evolutionary process. Depending on who you ask, up to 90% of startups fail. Only 1% will make it to the big league to compete with unicorns like Uber, Zoom and other financial success case studies.

Most startups that reach seed funding fail to raise a second round of capital. One solution to dramatically increase your chances of success is to enter one innovation accelerator and create a strategic partnership with a large corporation.

Innovation accelerators exist on a quid pro quo basis. In exchange for a small percentage of capital, they offer startup founders a safe harbor to develop their new business. Innovation accelerators are structured programs, usually specialized in a certain field or sector. Entrepreneurs receive mentorship, resources and assistance from a powerful partner who has a vested interest in seeing them succeed. Innovation accelerators definitely work, but there can be shortcomings. You may be signing a part of your business and will be expected to play by the rules of the innovation accelerator – and the initial acceptance process can be exhaustive and time-consuming.

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Innovation accelerators are bridging the gap

Despite the devastating rate of disruption, there is no doubt that startups are shaping the future of business and are the single most dynamic vehicle for channeling new technology innovation into the digital economy. Big companies (at least the smart ones) recognize the potential of new startups and are keen to either integrate their new technologies into their operations or take advantage of them as investors.

Since 2005, we've seen a growing enthusiasm for corporate innovation accelerators that can both nurture and stimulate new startups. Founders can bring their new businesses to accelerator programs, either at a concept or near-market stage, and benefit from the resources, expertise and professional networks to which the programs have access. This may also include actual cash investments. Most founders are mature and experienced enough to welcome the professional help—and increased peace of mind—that accelerators provide.

Innovation accelerators subject applicants to fairly rigorous and detailed screening, but the best programs are open to unconventional ideas and disruptive concepts. Every startup is essentially one business experiment. Accelerator programs attempt to create laboratory conditions that will allow stakeholders to adapt the experiment, explore new directions, and amplify success—before the product goes to market. For durable products, time to market and development and marketing costs can be significantly reduced.

3 main accelerators of innovation

There are approx over 8,000 accelerator programs worldwide, more than half of which were founded between 2014 and 2020. Programs are competing to identify profitable startups and gain privileged access to technological innovations or products that can provide shortcuts to market dominance. Even niche technologies that adapt or optimize existing processes can provide a valuable return on investment.

Companies and organizations across the financial and industrial spectrum are investing in their programs and enabling thousands of new businesses each year. Three fascinating accelerators of innovation in 2024 are presented here. They're not necessarily the biggest programs, but they provide valuable insight into what makes an accelerator punch above its weight.

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1. Microsoft Founders Center for Startups

The multi-billion dollar corporation Microsoft began life in 1972 as a small high-tech startup. Today, you Microsoft Founders Center for Startups is providing a unique innovation accelerator platform for a new generation of software entrepreneurs. Microsoft Hub is very egalitarian and focuses on initial accessibility. Anyone can apply to the Hub via an online form and expect a quick response.

Since then, the platform is meritocratic and startups can progress through its stages, acquiring bundles of Microsoft's latest technologies and development tools, including access to AI services, Azure credits and 1:1 mentoring with experts of Microsoft. Microsoft Hub represents an almost democratic approach to entrepreneurship and can be ideal for low-budget or even no-budget ventures.

2. ICL Group's BIG

ICL Group is a leading global specialty minerals company and one of the world's largest fertilizer producers. ICLs BIG The Internal Accelerator (Business Innovation for Growth) has received more than 4,000 submitted ideas that have so far been converted into over 1,500 projects, with their revolutionary approach to promoting internal innovation and encouraging employee-initiated projects and excellence , and with special focus on employee engagement and recognition.

BIG is built on three key concepts: growing the idea, accelerating execution and improving collaboration, and has thrived since its inception, making it a highly successful business model.

3. Google for Startups

Google for Startups targets a completely different segment of the new business spectrum. The program is focused on key growth-stage startups and offers a variety of accelerators that specialize in overcoming specific technical challenges. Accelerators give founders access to Google's vast resources and technological expertise.

Each Google accelerator houses 10-15 startups and connects them with mentors and advisors, both from Google itself and from the industry. Google's entry criteria are demanding and the program requires a commitment to ongoing technical engagement at a high level.

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Accelerators shape corporate culture

The skill and experience of each accelerator team and other stakeholders, the scale of their professional networks and the depth of their resources have a direct impact on the future structure of each startup they mentor and nurture. Furthermore, the culture of individual innovation accelerators inevitably becomes part of the DNA and ethos of any startup that makes the transition to a functioning growth enterprise. Accelerators driving startups in 2024 have a unique opportunity to shape the broader corporate landscape and work environment a decade from now.