Accelerators take on very early stage startups for a brief period, offering them support, mentoring, and often investing seed capital in them. TechStars is probably the second most prominent such program, after Silicon Valley’s Y-Combinator.
There are now over 60 accelerator programs in the U.S. alone, which Cohen thinks is unsustainable: “There will be a run up to a couple hundred and then we’ll probably see a run down to 10 would be my guess over the next five years.”
Cohen is obviously talking his book to some extent here — more accelerators means more competition for the most promising startups. But he’s hardly the first to suggest that accelerators are in a bubble.