Why good companies and good incubators are made for each other
We've been tallying grant, debt and equity reported raised by 46 companies after joining Dogpatch, TechStars and the Venture Development Center, three incubators showcased by the Angel Capital Association during their annual meeting in Boston. The following chart shows the results:
More than half of the total raised was added during 2012. In other words, it took at least one year for the companies to raise significant investment. Companies at Tech Stars took six months longer to raise most of their total than the companies at Dogpatch and the Venture Development Center.
Overall, the companies at Dogpatch, TechStars and the Venture Development Center have a 78% fundraising success rate. Average raised was $2,900,208.
On popular fundraising site AngelList, Massachusetts startups average $726,000, according to Startup Data Trends. In other words, a startup raised more than triple the amount of funds if they were accepted into one of the Boston incubators.
Coming through incubator programs doesn’t guarantee success. But, it obviously helps, at least with investors, which may be harder to find than customers, because there are so few of them.