The Next Big Trend for Startups and Cities Has Arrived
- Mark Gold
- Apr 28, 2017
- 3 min read
2020's mission is to empower entrepreneurs and continue providing communities of diverse visionaries the environment, education and expertise to accelerate success.
As evidence begins to demonstrate and experts overwhelmingly agree that the best and fastest way to grow a startup is through an accelerator, a new trend is emerging known as non-equity or non-profit accelerator.
Non-profit accelerators are typically just that, a non-profit accelerator program that does not require equity to participate and is subsidized by a government organization and/or corporations. As Cities and States begin to see the economic opportunities and benefits by hyper-accelerating small businesses and tech startups, programs like 2020 Startups are being green-lit across the globe focusing on empowering entrepreneurs and economic development. What makes accelerators exceptional environments to breed growth is the various support channels like executive education workshops, mentorships, alumni networks, access to high-profile individuals, investors, influencers, partners, press and business leaders that converge in one location. This is what we commonly refer to as an ecosystem.
As 2020 Startups is proud of being the first non-profit accelerator in New York City, we accept that we are just a microcosm of a much more complicated nexus. For example The Swiss Accelerator program "Kickstart" launched last year, provides free workspace, mentoring and doesn’t take any equity. Another entrepreneurial empowerment program called Sosa, is kind of a hybrid between a private co-working space and an accelerator, as it prides itself on being an ecosystem for global innovators to connect and collaborate. Similar empowerment programs are popping up in Toronto, Germany, Israel, and in the United States.
These non-profit accelerator programs are gaining traction because they are focusing on early-stage startups, the maker community, and small business ideas that are not particularly hi-tech like traditional accelerators but can quickly create job growth. New York State's Business Mentor of NY community recently released a study that 1 entrepreneur with the right guidance can create up to 3 jobs in the first year.
However what differentiates 2020 Startups is their result-driven attitude. Over 90% of participants reported significant growth, roughly 30% acquired funding and approximately 60% of the cohorts were featured in major press outlets like CNN, NBC, Business Insider, Huff Post, and BuzzFeed all within the 90-day period. To quantify the ROI on a $2,500 90-day program and compare it to a 3 month public relations contract is mind-boggling. This means, in terms of average ad-dollars spent, entrepreneurs can achieve extraordinary results for practically pennies, and it's a win-win for everyone.
The primary challenge though, for 2020 Startups as well as all non-profit accelerators is the lack of marketing funds to for exposure, especially in the early years. Most startups aren't aware of these subsidized options but I believe in the next coming years there will be an uptick in non-profit accelerator awareness as more participants start publicizing their results.
As 2020 Startups approaches it's one year anniversary this June the Advisory Board (myself included) are immensely proud that the program has proven to scale startups at an unprecedented rate for a non-profit Accelerator. As the 2020 ecosystem expands to Bell Works NJ this summer, 2020 will be able to further impact the entrepreneurial community by focusing on student founders or student startups, and provide unparalleled resources - never seen before in the Tri-state.
2020 Startups at Bell Works NJ is offering student founders a proven 90 day Accelerator program with 0% equity requirement, an additional 3 months of free co-working space and Marcom recruitment as part of their mission to empower entrepreneurs. The 2020 Startups Accelerator offers a result-driven program providing highly personalized workspace, workshops, mentorships, partnerships, PR and investor relations proven to scale startups at an unprecedented rate for a non-profit Accelerator, and will feature head instructor Keith Cutler former VP at CBS, current instructor at General Assembly and a wide-variety of thought-leaders.
Keep your eyes on non-profit accelerators as they become highly competitive in their performance and are sure to rattle the industry in the years to come. 2020's mission is to empower entrepreneurs and continue building an ecosystem for visionaries.
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