The world was locked down in March of 2022 when COVID-19 was a growing issue, and social distancing laws were implemented. The measures did nothing to stop the investment in startups by angel investors or venture capitalists.
If there is an epidemic or economic crisis, Venture funds must allocate their investors’ capital according to their fund’s life cycle and time-frame demands. In actuality, the technology industry hugely profited from the shift towards remote work, leading to more capital flowing to startups than initially anticipated before the pandemic. The new world of remote work culminated in creating a record amount of capital poured into startups globally in the first quarter of 2022. it is a new record.
The increased demand for remote-based programs has led to the Newchip reviews tripling its size in 2020, which saw over 1,000 startups from 35 countries join. The Newchip Accelerator’s membership is predicted to double by 2022.
Here are a few of the reasons for the increase in remote programming:
1. Traditional accelerators cannot operate in person as they have been less than a year to transition towards online programming.
Traditional accelerator programs required founders to attend their offices, often requiring them to relocate to a different city. Social distancing and lockdowns have rendered this model unattainable, leading to the difficult transition towards virtual programming.
Most programs are only accessible to the top hubs for startups. The old model frequently created the networks for fundraising and mentors, which can differentiate between a successful or unsuccessful startup unobtainable to founders who were not in these hubs.
Remote programs benefit from the advantages of being able to assist founders from any location. Many companies are adopting an online culture, and with the influx of people out of cities, the demand for remote-based programs is growing more quickly than ever.
2. Venture capital companies invest beyond the 10-mile area of Menlo Park & Palo Alto.
Before COVID, Venture capitalists from Silicon Valley were already looking out of driving distance to find deals flow. The epidemic increased this trend.
Nowadays, VCs aren’t calling founders into their offices to present pitches the idea. They’re meeting with them and signing contracts over Zoom. The result is that the geographic place of the founders is less critical than it used to be.
Due to this, online programs connecting founders with angel investors and venture capitalists are seeing significant growth in their need for them.
3. More founders are who have started businesses than ever before.
The Great Recession led to the second-largest startup boom in the world and saw the growth of Uber and Airbnb.
Economic recessions typically increase the number of new startups and small-sized businesses. The destruction to the economy by the COVID-19 pandemic is no one-off to this trend. People in massive amounts are starting companies.
Traditional accelerator models are ineffective because of ongoing social distancing, and social distancing measures, the future of accelerators will be virtual.
Why do founders choose to go with Newchip Accelerator?
An experienced group of entrepreneurs who believed there were many unexplored opportunities outside the traditional hubs for startups created Newchip reviews in 2018. Newchip Accelerator in 2018. They determined to create a venture ecosystem previously restricted to investors and founders in the top cities for startups like San Francisco and New York more accessible.
Due to this, that’s why the Newchip Accelerator was designed as a remote-based program from the time of its beginning. It was prepared to transition to remote work that the plague made. While other accelerators were forced to change their direction, Newchip Accelerator did not have to change. Newchip Accelerator only had to modify what it was offering from the beginning. Today, enrollment has increased by three times more than prior numbers.
Since the beginning of 2019, Newchip reviews has helped founders raise more than $300 million, with more than 70% of their graduates succeeding in raising capital. In the end, this has led to a 17.5X more successful fundraising rate for their startups than startups that are not part of Accelerator Networks.