Driving the Net Flow of Funds

  • Peter W. Roberts
  • Saurabh A. Lall


Chapter  4 analyzed the effects that accelerators have on the short-term growth of revenues, employment, and investment. The various observations consistently show that accelerator program participation influences these commercial and investment variables. However, the final presentation indicated that these effects are uneven across programs. Therefore, the general question of whether acceleration works gives way to more specific questions about which programs and program choices deliver more attractive ratios of accelerator benefits to program costs. This chapter begins by introducing a program-level variable called the net flow of funds (NFF). The NFF variable recognizes the four ways that funds flow into early-stage ventures; they are earned, invested, borrowed, or donated. For each program, the NFF measures the average of participants’ one-year growth in revenues plus investments minus the corresponding average for ventures that were rejected. We show that accelerators vary in the extent to which their NFF exceed the per-venture costs of running programs. After isolating the programs that more than cover their reported operating costs, we describe the program-level data that will be used in the more nuanced NFF analyses presented in Chaps.  6,  7, and  8.

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Peter W. Roberts
    • 1
  • Saurabh A. Lall
    • 2
  1. 1.Goizueta Business SchoolEmory UniversityAtlantaUSA
  2. 2.University of OregonEugeneUSA

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