This study by Joonho Oh (co-authored with his doctoral advisor Maryann Feldman) examines how the geographic diversity of startup accelerator cohorts affects participants' fundraising successes. Accelerators recruit startups from multiple regions into time-bounded programs, but it has been unclear whether the spatial composition of these accelerator cohorts matters for investment outcomes. Using data on 329 startups across 30 Techstars cohorts, this study finds that startups in geographically diverse cohorts are more likely to secure funding during the program period and to form investment ties with investors located in their peers' home regions. These effects are are concentrated around the investor pitch event, suggesting that the benefits arise from short-lived opportunities for network mobilization rather than from long-term capability building. 

The findings carry practical implications for policymakers seeking to promote regional economic development through accelerator-like entrepreneurial support programs. While policymakers often focus on how many firms from their jurisdiction participate in such programs, this study suggests that ensuring geographic diversity among participants are also crucial for the growth of local firms; broader geographic representation expands the range of investor networks that startups can access, helping them overcome the funding constraints of any single region.

This paper originated from research conducted as part of Joonho Oh's doctoral dissertation.