Late-stage expansion programs expand as other support programs slump
When Vator was launched nearly 15 years ago as a platform to connect investors and entrepreneurs, venture capital was still considered a niche industry. Currently, not only is the VC industry growing exponentially, but the commercialization gap is also becoming proportionately more difficult.
This is especially complex for companies that don’t have the relationships and networks needed to successfully navigate that standard gap, especially in the United States, arguably the world’s largest market.
Startup Genome wants to change that. The UK- and US-based company and the Tokyo Metropolitan Government have announced the joint development of a new mentoring program called Hypergrowth Tokyo. The goal is to “succeed in the global commercialization and expansion of Tokyo’s best tech companies into international target markets.”
This partnership is in line with the Tokyo government’s commitment to making Tokyo “the world’s most startup-friendly city.” This venture is a manifestation of that goal, with more than 20 companies expected to participate in the program.
Although Startup Genome supports startups, it is not a traditional accelerator that focuses on young startups before they are product-market fit. In other words, Startup Genome companies are actually scaling rather than launching, so it would be more appropriate to call them “.”Scale-upStartup Genome provides scale-ups with access to global mentors, scaling advice from key executives, go-to-market support and connections with potential leads and investors, the company said.
For these Tokyo companies, this presents an opportunity to specifically leverage U.S. sales channels.
Hiro Nishiguchi, CEO of Startup Genome Japan, said in a statement: We aim for the growth of our country led by startups. ”
Hypergrowth’s areas of focus include deep technology, health technology, sustainability, and AI. For example, Aladdin is developing his AI-powered waste management solution, to name a few of these unique innovators. Fermentation turns plant waste into useful substances. Flying Cell focuses on regenerative medicine using magnetic targeting. Pixie Dust Technologies leverages sound and light-based interface technologies to build computer technology. There is also a shampoo maker called “The Rich” that uses silk technology.
The program will officially launch at an event in Tokyo at the end of March, will last approximately 10 months, and will be fully funded by the Tokyo Metropolitan Government.
Startup Genome is expanding around the world
While Startup Genome appears to be expanding, accelerator programs aimed at young startups appear to be restructuring or struggling.
The overall situation for venture capitalists in 2023 worsened, as capital raised by US venture capitalists fell by 60% amid rising interest rates, and funding received by startups fell by 30% from the previous year. Multi-year trends are showing clear signs for accelerators. Growing competition from VC firms and an abundance of digital tools are forcing accelerators to rethink and reinvent their models. To that end, Techstars, a renowned accelerator with global footprint that positions itself as “the world’s most active pre-seed investor,” has quickly built several local startup hubs, including a unit in Boulder, Colorado. Closed and relocated location. Headquarters in New York. He thus reversed Techstars’ initial focus and the success that took root from it. The company is also cutting programs and cutting jobs around the world and could soon lose its partnership with JPMorgan after 2023 revenue and losses were lower than expected.
Meanwhile, Startup Genome has a presence in Canada, partnering with Montreal and Quebec and working with a diverse portfolio of companies. Startup Genome also works with government and private sector organizations to accelerate the success of the startup ecosystem and foster sustainable job growth. In all, Startup Genome has advised over 160 government and innovation agencies.
We’re likely to hear more of these hypergrowth programs this year.
(Full disclosure: Vator works in partnership with Startup Genome on certain projects).
