Start-up accelerators are key players in the entrepreneurial ecosystem, offering structured, cohort-based programs that accelerate the growth of early-stage start-ups. A critical but understudied design element of accelerators is the industry concentration of their cohorts, which facilitates vicarious learning by enabling start-ups to share industry-relevant knowledge more effectively. However, while cohort industry concentration fosters learning effectiveness, it may also exacerbate competition among peers, potentially undermining knowledge exchange. Our study examines the dual nature of cohort industry concentration, finding that it has a positive impact on start-ups’ fundraising performance, enhancing both the likelihood and amount of funds raised after acceleration. Importantly, we observe that this effect is moderated by accelerator design features: competition-enhancing features like demo days weaken the benefits of concentration, while competition-reducing features, such as shorter program durations, amplify its advantages. Using a dataset covering 1,481 start-ups across 266 accelerators globally from 2013 to 2019, our results offer actionable insights. For accelerator managers, fostering industry concentration can boost cohort performance, provided competitive pressures are carefully managed. For start-up founders, selecting accelerators with industry-focused cohorts and design features mitigating competition can optimize peer-to-peer learning and fundraising performance. These findings advance our understanding of accelerator strategies and entrepreneurship.
