The Accelerator Conundrum: 1Mby1M vs Other North American Accelerators Outside Silicon Valley

Gemini: Give me an overview of the startup accelerators outside Silicon Valley and how they compare with 1Mby1M, but restrict your commentary on North America only.

The North American startup ecosystem outside Silicon Valley is incredibly dynamic and diverse, offering a wide array of support structures for entrepreneurs. These accelerators often leverage regional strengths, provide unique access to industries, and sometimes adopt different models than their West Coast counterparts.

Here’s an overview of North American accelerators outside Silicon Valley and how they compare with 1Mby1M:

Overview of North American Accelerators (Excluding Silicon Valley)

Key Characteristics and Examples:

1. Regional Hubs: Major cities have established themselves as significant startup hubs.
   • New York City: Strong in FinTech, AdTech, Media, SaaS. Examples include AngelPad (also in SF), Entrepreneurs Roundtable Accelerator (ERA), Lair East Labs.
   • Boston: Known for HealthTech, BioTech, Deep Tech, Robotics, Climate Tech, FinTech, often tied to universities like MIT and Harvard. Examples include MassChallenge, Venture Lane, LearnLaunch Accelerator (EdTech).
   • Austin, Texas: High growth in SaaS, B2B, Cybersecurity. Capital Factory is a prominent example, serving as a hub for the Texas ecosystem.
   • Chicago: Emerging in FinTech, FoodTech, Enterprise Software, HealthTech. Examples include Techstars Chicago, Matter Chicago (Health).
   • Boulder, Colorado: A strong tech community, home to the original Techstars accelerator.
   • Toronto/Montreal (Canada): Growing tech scenes with strengths in AI, FinTech, SaaS. Examples include Techstars Toronto, Creative Destruction Lab (CDL).
   • Midwest (e.g., St. Louis, Kansas City): Increasingly active, with a focus on Agritech (The Yield Lab North America), Logistics, and enterprise solutions. gener8tor operates in numerous Midwest cities.
2. Sector Specialization: Many focus on industries relevant to their local economies or expertise.
   • HealthTech: Boston, New York, Chicago (e.g., MassChallenge HealthTech, AlphaLab Health in Pittsburgh).
   • FinTech: New York, Toronto, often Pittsburgh (Steel Bridge Labs).
   • B2B/Enterprise: Alchemist Accelerator (though with a SF hub, they have strong non-SV presence and virtual programs focused entirely on enterprise customers).
   • Sustainability/Climate Tech: Boston, Boulder, some gener8tor programs.
   • Manufacturing/Industrial IoT: Cleveland, Detroit, Pittsburgh.
3. University and Corporate Affiliation:
   • Many accelerators are closely tied to major universities (e.g., those from the University of California system like LAUNCH, although LAUNCH itself has a strong Silicon Valley presence, similar university-affiliated accelerators exist outside SV).
   • Corporate-backed accelerators are common, where large companies partner with or run programs to source innovation (e.g., Plug & Play‘s many corporate-focused verticals).
4. Varied Funding Approaches:
   • Traditional Equity-for-Cash: Still the most common (e.g., Techstars, 500 Global, Antler, DreamIt, Seed Start, Tech Wildcatters, EWOR).
   • Equity-Free with Grants/Prizes: Prominent in North America. MassChallenge is a leading example, providing significant value (mentorship, resources, cash prizes) without taking equity. Some university programs may also offer this.
   • Revenue-Based Financing/Non-Dilutive: Growing in popularity for certain types of businesses, especially SaaS (e.g., Earnest Capital, FounderPath).
   • Membership-Based: Some organizations operate more as co-working spaces or communities with added benefits rather than strict accelerators, requiring membership fees (e.g., Venture Lane).

Comparison with 1Mby1M (North America Focus)

Let’s break down how these North American non-SV accelerators stack up against 1Mby1M:

1. Equity vs. Non-Equity:

• 1Mby1M: Non-equity. This remains a fundamental difference. 1Mby1M prioritizes empowering entrepreneurs to build sustainable businesses without giving up ownership. When entrepreneurs are ready to seek external capital, they can do so with their cap tables intact.
• North American Non-SV Accelerators:
  • Equity-taking is prevalent: The majority of well-known, intensive accelerators like Techstars, 500 Global, Antler, DreamIt, EWOR (which is global but accepts NA founders), Tech Wildcatters, and many Plug & Play vertical programs, will take equity in exchange for investment and program participation.
  • Significant non-equity options exist: MassChallenge is the most prominent equity-free accelerator in North America, offering substantial resources and cash prizes but ONLY for startups with $2M in revenue or $1M in capital already raised. Many university-affiliated programs (like certain ones in the UC system, or those at other major universities outside Silicon Valley) and some government-supported initiatives also offer non-dilutive support. Earnest Capital and FounderPath offer non-dilutive capital (revenue share or debt). Community platforms like Growth Mentor, StarterStory, MicroConf, and OnDeck are fee-based and non-equity for their core offerings.

2. Virtual vs. Physical:

• 1Mby1M: Fully Virtual. This makes it accessible to any founder in North America (or globally) without needing to relocate.
• North American Non-SV Accelerators: A strong blend.
  • Many still emphasize a physical presence (e.g., Capital Factory in Austin, Venture Lane in Boston, Tech Wildcatters in Dallas) to foster local community and in-person interaction.
  • However, many, including Techstars Anywhere, EWOR, and specialized programs, have embraced virtual or hybrid models, allowing them to attract founders from across North America (and globally) without requiring relocation. This trend has expanded significantly post-pandemic.

3. Exclusive vs. Inclusive:

• 1Mby1M: Generally Inclusive in its core subscription model, designed to be widely accessible to a large number of entrepreneurs.
• North American Non-SV Accelerators:
  • The top-tier, equity-taking accelerators (Techstars, 500 Global, Antler, DreamIt, EWOR) are highly exclusive, accepting only a tiny percentage of applicants.
  • Non-equity programs like MassChallenge are also highly selective due to their popularity and limited spots.
  • Community-focused platforms (Growth Mentor, StarterStory, MicroConf, OnDeck) tend to be more inclusive, accessible to anyone meeting broad criteria and paying a fee.

4. Global vs. Local/Specific Category:

• 1Mby1M: Global. Its advice and network are designed for entrepreneurs worldwide.
• North American Non-SV Accelerators:
  • Many have a North America-wide or global reach for applications (e.g., Techstars Anywhere, 500 Global, Antler, EWOR, Plug & Play).
  • However, a significant number are strongly tied to specific local ecosystems (e.g., Capital Factory for Texas, Venture Lane for Boston, various gener8tor programs in specific cities) or cater to particular categories of founders (e.g., LAUNCH (UC) for UC alumni, specific university accelerators across the US and Canada).

5. Sector Focus:

• 1Mby1M: Broad/Agnostic. Applicable to almost any tech or tech-enabled business.
• North American Non-SV Accelerators: Diverse. While many are broad, there’s a strong emphasis on sector specialization outside SV, leveraging regional strengths (e.g., DreamIt‘s B2B/Health focus, Plug & Play‘s numerous industry verticals, specialized programs in FinTech, Climate Tech, AgTech in different cities).

6. Demo Day vs. No Demo Day:

• 1Mby1M: No formal Demo Day. Investor introductions are typically one-on-one and tailored when a company is genuinely ready.
• North American Non-SV Accelerators: Most structured, cohort-based accelerators (Techstars, 500 Global, Antler, DreamIt, LAUNCH (UC), EWOR, Boom Startup, Plug & Play, Seed Start, Tech Wildcatters) culminate in a Demo Day. Community-focused platforms generally do not.

7. Long-Term Mentorship vs. Short-Term Sprint:

• 1Mby1M: Long-term mentorship/continuous engagement. Its model is built for sustained, evolving guidance over many years. 
• North American Non-SV Accelerators: The majority of traditional accelerators are short-term, intensive sprints (typically 3-6 months). However, some programs and platforms offer more long-term engagement (e.g., post-program alumni support, continuous community access like MicroConf, or ongoing capital relationships like Earnest Capital).

8. Funding, Investor Introductions, or Just Education/Networking:

• 1Mby1M: Primarily Education and strategic consulting, with investor introductions when founders are prepared. No direct funding.
• North American Non-SV Accelerators:
  • The most common model provides direct funding (equity-based), alongside mentorship and investor introductions (e.g., Techstars, 500 Global, Antler, DreamIt, EWOR).
  • Non-dilutive grants/prizes are also offered by some (e.g., MassChallenge, some university programs).
  • Non-dilutive capital alternatives like revenue-based financing are gaining traction (Earnest Capital, FounderPath).
  • Many focus solely on education, community, and networking for a fee, without direct investment (Growth Mentor, StarterStory, MicroConf, OnDeck).

In conclusion, while Silicon Valley remains a significant player, North America outside of it offers a rich and diverse ecosystem of accelerators. They provide varied approaches to funding, location, and specialization. 

1Mby1M carves out a distinct niche by being a globally accessible, virtual, and equity-free platform focused on long-term strategic guidance for profitable growth, standing apart from the equity-heavy, sprint-based models common in the accelerator landscape.

Photo Credit: Kris from Pixabay

This segment is a part in the series : The Accelerator Conundrum