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The effect of business accelerators on regional venture capital funding in the UK

Year: 2026

Type: article

Abstract: Over the past twenty years, numerous local governments in various countries have set up accelerators and incubators to fund start-ups and help transform their local economies. However, there is limited evidence regarding the impact of these programmes on the availability and supply of seed and early-stage venture capital in their regions. This study examines the effects of business accelerators on total venture funding in UK Local Enterprise Partnerships (LEPs) from 1998 to 2016. Multiple methods were employed to address concerns about reverse causality. The findings suggest that accelerators have a minimal to negligible impact on regional venture investment, particularly in large areas such as LEPs. Additionally, the results support the notion that regional characteristics moderate the relationship between venture capital and accelerator establishments.

Source: White Rose Research Online (University of Leeds, The University of Sheffield, University of York)

Authors: Kutuzov, A., Sena, V., Samei, A., Aghasi, K.

Institutions: Thorax Foundation, University of Sheffield

Language: English

Topic: Private Equity and Venture Capital

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: green

OpenAlex ID: W7160806759

FWCI: