<article>The recent announcement of Telstra-backed startup accelerator programme muru-D discontinuing its Singapore operations begs the question: what went wrong?</article>

The recent announcement of Telstra-backed startup accelerator programme muru-D discontinuing its Singapore operations begs the question: what went wrong?
Other accelerator programmes in the region that have shut shop previously include Singapore-based <a href="https://www.dealstreetasia.com/stories/aussie-accelerator-pollenizer-to-shut-down-in-june-due-to-unsustainable-model-report-66281/">Joyful Frog Digital Incubator (JFDI)</a> and Australia-based <a href="https://www.dealstreetasia.com/stories/aussie-accelerator-pollenizer-to-shut-down-in-june-due-to-unsustainable-model-report-66281/">Pollenizer</a>. Pioneers in their own markets, both cited business sustainability as the main challenge in running their Southeast Asia operations.
Meanwhile, Silicon Valley-based global accelerator programme Plug and Play believes that it has managed to crack the sustainability code.
“We are a truly open innovation platform whereby two key features of our mature accelerator programmes are that number one: we have a consortium-based approach where multiple corporate partners support a programme – that way we can aggregate more problem statements and we have more resources to execute.
“Second, we are stage-agnostic in having both early-stage startups perhaps with cutting-edge technology and also later-stage startups that are readier to engage on PoCs (proof of concepts), commercial projects etc.,” Plug and Play international senior vice-president and managing partner for Asia Pacific, Jupe Tan told DEALSTREETASIA.
The global accelerator has a presence in Singapore and Indonesia. It is looking to establish its presence in at least one new location in Southeast Asia early next year.
Tan shared that the continuous search for good startups is also a challenge. “…which is why we constantly reach out to source for startups through events, direct outreach and others. Some markets are also very crowded with too many accelerators, potentially causing some ‘fatigue’.”
Plug and Play’s investment portfolio comprises over 800 startups across the globe, with over 30 investments located in Southeast Asia. Founded slightly more than a decade ago, it has graduated at least over 500 startups globally.
Now back to muru-D Singapore.
Having funded more than 20 startups across three cohorts in Southeast Asia, muru-D said it has decided to <a href="https://www.dealstreetasia.com/stories/telstra-muru-d-singapore-100932/">“refocus” its strategy</a> on home ground Australia, without giving any specific reason for the discontinuation of its Singapore operations.
Subsequent to the closure of muru-D Singapore, Telstra’s venture arm, Telstra Ventures, announced that it is <a href="https://www.dealstreetasia.com/stories/telstra-harbourvest-fund-100991/">merging its new fund</a> with private equity giant HarbourVest Partners to focus on early- to late-stage investments in the US, Asia and Australia. Telstra is reportedly realising $55 million from HarbourVest.
Craig Dixon, a former entrepreneur in residence for muru-D Singapore, has partnered another former muru-D fellow, Amra Naidoo, to launch a new accelerator programme, Accelerating Asia.
In a <a href="https://medium.com/@craigbristoldixon/the-startup-accelerator-model-isnt-working-in-southeast-asia-let-s-fix-it-598c86c6430b">blog post</a>, he claimed that the reason for muru-D Singapore’s closure was due to its “complete reliance on its corporate sponsor&#8221;. However, he also gave credit to Telstra for giving muru-D Singapore the free rein to run the programme without any corporate alignment.
Dixon also noted that corporate-backed accelerators run the risk of the parent company having a bad financial quarter and might face closure as the corporate would attempt to shed off non-core assets. Among other things, when it comes to running an accelerator, having a “real” revenue model is important, he said.
According to Dixon, leveraging off his muru-D experience, Accelerating Asia will directly drive revenues to the business while fostering engagement between startups, corporates and other organisations.
Will it work? We shall see.
Also read:
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/telstra-muru-d-singapore-100932/">Telstra’s muru-D accelerator discontinues Singapore programme</a>
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/aussie-accelerator-pollenizer-to-shut-down-in-june-due-to-unsustainable-model-report-66281/">Australian accelerator Pollenizer to shut shop: Report</a>

What went wrong with the accelerator programmes that have recently ceased their operations?

Startup accelerators and the challenge with cracking the sustainability code

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