There are more than 100 accelerators and incubators in Canada now and that number continues to rise.
As quantity seems to overtake quality, some experts have denounced most accelerators as programs that will actually harm the startups who participate. Former TechStars NYC managing director David Tisch said in August that "the majority of accelerators are not good for companies" and that "there are too many of them."
Now Silicon Valley serial entrepreneur Peter Relan is saying that 90% of accelerators will fail. But he also claims this isn't a bad thing.
In a guest article for TechCrunch, Peter argues there are far too many companies and far too little mentorship. He also says most startups in low-grade accelerators struggle to gain any funding after the programs end.
Where does he get the 90% figure from? Well, he makes a valid point in saying new startup accelerators are startups themselves. And the commonly accepted rule of thumb is that (at least) 90% of startups fail. ("Fail," in this context, is defined as not returning or exceeding the money put into them.)
But Peter says this isn't something to worry about. And why should it be? When 90% of startups fail, no one bats an eyelid. Smart entrepreneurs will flock to quality accelerators while the bad startups will flounder inside of bad accelerators.