Asia accounts for less than 10% of global accelerator investments

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Some 387 of the world’s accelerators poured US$192 million into startups last year, according to a report released today by Gust and Fundacity. Accelerators in the Asia-Pacific region, including Australia and New Zealand, accounted for about US$16.8 million of the tally – which is just 8.75 percent.

That puts the region fourth in the rankings, behind the US and Canada with US$90.3 million, Europe (US$41 million), and Latin America (US$31.6 million). The Middle East comes last with US$12.3 million.

A total of 8,836 startups got a boost from these accelerators, of which 1,295 were from across Asia.

See: Take a closer look at Asia’s accelerators (INFOGRAPHIC)

The majority of accelerators do not plan on monetizing through startup exits in the short term but depend on “alternative” revenue sources such as corporate partnerships and sponsorships, the report said, without providing further details.

In Asia-Pacific, only 34 exits – via M&A or IPO – were recorded by accelerators last year. It’s a far cry from the 193 exits witnessed in the US and Canada. “Apart from the US, global exits are still fairly uncommon events and this explains why accelerators have pivoted by diversifying their business model,” noted the report.

However, that’s expected given that many of the world’s leading startup ecosystems are in the US, while a lot of markets in Asia are still in their nascent stages. Silicon Valley and the rest of the San Francisco Bay Area, for example, have long been leaders in high-tech startups, giving birth to companies such as Apple, Google, and Facebook.

See: The future for exits in Southeast Asia is M&A, not IPO

The report didn’t say what qualifies as an accelerator although a previous Fundacity report provided some insights. It said to distinguish from incubators, accelerators are generally defined as those having:

• An application process that’s open to all yet highly competitive
• Provision of pre-seed investment usually in exchange for equity
• A focus on small teams rather than individual founders
• Time-limited support comprising of programmed events and intensive mentoring
• Cohorts or “classes” of startups

Formerly known as AngelSoft, New York-based Gust is a platform that helps match startups looking for funding with investors, while providing tools for investors to target startups that fit their interests. It acquired Fundacity, which does the same thing, in February.

Read the 2015 global report here and the 2014 Asia report here.