A question that came up during my session with Andree last weekend at BarCamp Munich, was how effective accelerators like SeedCamp or Y Combinator are in helping startups receive funding.

Before digging into the numbers, I would first like to point out that receiving funding is not necessarily a good indicator for a startup’s success. And while the above mentioned programs are very different (in both nature and geographical focus) a blunt comparison might not give each the credit they deserve.

I am still convinced that both are doing a terrific job creating great startups and I highly recommend applying there to get real mentorship, exposure to great, passionate people, and accelerate your startup.

For the following analysisI used publicly available data from TechCrunch’s CrunchBase.

It should be noted that there is a minor presence of error as some companies of Y Combinator weren’t showing up on CrunchBase and others did go through funding rounds but did not disclose the amounts raised.

SeedCamp
Having been established in London about 3 years ago, SeedCamp is primarily focused on the UK and Europe. Its primary event, SeedWeek, is happening once a year in London. Due to its roots and its geographical focus, it is also not surprising that the companies coming out of this program are primarily from the UK. But the program’s outreach into other areas has created a pretty diverse roster with startups from 11 different countries.

Y Combinator
Y Combinator has been around for 5 years. Unlike SeedCamp, Y-Combinator doesn’t have fixed deadlines for application. However, Y Combinator hosts its 3-month-mentoring event twice a year. The first data points available for my analysis are from the June 2005 intake. Y Combinator is known for being an American program and hence the startups applying here are primarily from the US (with some minor exceptions like the UK).

Due to the afore mentioned differences, it should be of no surprise that the programs created a very different output in terms of startups going through their programs.

Hence, the fact that the total amount raised by Seedcamp companies was at around € 9.6M whereas this number is at about $ 135.4M for Y Combinator. To determine the spread of these rounds, I looked into the averages and the standard deviations:

What might matter more is the question about how these two programs differ in their performance. While Y Combinator is around for a longer time, the hypothesis can be made that these large amounts are due to sheer numbers. So let’s have a look at averages by plotting how many of each class were funded grouped by the classes they were in.

As is pretty evident by this chart, Seedcamp started out way more successful along this metric. But even Y Combinator shows some swings. The most recent classes should not be considered in both cases as they are both pretty young (Seedcamp’s class usually starts in September and Y Combinator’s in June).

As we will soon see, these numbers are also quite inconclusive as the spread is too big to jump to any conclusions. Going through the individual rounds and plotting these in a bubble chart provides a more visual approach, providing more helpful insights in answering the question above.

The X-axis is the program these startups went through whereas the Y-axis denotes the days between the start of the program and the first funding. I did not consider the amount these startups were receiving from the respective programs to go through the mentoring months. However, should there have been a rather large amount provided by e.g. Y Combinator, I considered this a first funding round.

Conclusion
Again, as these graphs show, both programs are doing a great job bringing out some fine companies. And Y Combinator’s quick flips (e.g. Reddit, Zenter, GraffitiGeo, Omnisio all got acquired within 6 months after going through Y Combinator) show that Y Combinator is doing a great job, accelerating companies for an acquisition.