Building Sustainable Tech Ecosystems: Rethinking Support for Early-Stage Founders

Economic development organizations play a crucial role in helping tech founders succeed. It’s likely that many have heard of the big-name accelerators—the ones with the flashy logos, 12-week programs, and promises of turning startups into unicorns in record time. However, just because a program has been around forever doesn’t necessarily mean it’s the best approach for developing a sustainable tech ecosystem. As the landscape evolves, it’s important to rethink how early-stage tech companies are supported. Rather than focusing on rapid scaling or quick exits, the real opportunity lies in investing in models that prioritize sustainable growth, foundational support, and community-based programs that help startups develop at their own pace.

When it comes to early-stage companies, it’s crucial to understand that speed is not always the answer. Many traditional accelerators push startups into scaling too quickly, before they’ve had the chance to validate their business models or understand their market fit. The pressure to grow fast often leads to burnout and failure, which research shows affects 75% of startups in traditional accelerators. That’s a lot of wasted investment and potential. The focus should instead be on building strong foundations. Founders need time to test, learn, and iterate based on real customer feedback before they can successfully scale. The goal should be to provide the right capital and guidance at the right time, helping businesses grow organically and sustainably rather than forcing them into a race to scale prematurely.

Economic development organizations are not simply writing checks; they are making investments in the long-term health of their local economies. For this reason, the support that early-stage founders receive should go beyond funding. It’s essential to provide them with tailored support, mentorship, and resources that help them develop their companies in a way that aligns with their specific needs and growth trajectory. In many cases, this kind of ongoing support is best delivered through community-based models, where founders can connect with mentors, industry experts, and peers who can help them navigate the challenges of building a sustainable business.

One of the key challenges with traditional accelerator programs is that they often focus too much on the idea rather than the company itself. These programs are frequently built around the notion that the next big idea is the key to success, but in reality, the long-term success of a startup is dependent on building a solid business model. This includes validating market fit, developing a clear business strategy, and building the team and infrastructure needed for growth. The focus needs to shift from the initial idea to the company that is capable of sustaining and scaling that idea in the real world. Programs that provide stage-appropriate support and mentorship are essential for guiding founders through this critical process.

The old-school accelerator model, which often feels like a one-time event that comes into a city, runs its program, and then leaves, doesn’t create the lasting impact needed to foster a thriving, sustainable tech ecosystem. Economic development efforts should back programs that are more integrated into the local community and offer ongoing, long-term support to startups. Community-based models are particularly effective because they provide continuous engagement with the founders, fostering connections and creating lasting value that extends beyond the short duration of a typical accelerator program.

Investing in new, community-focused models is the way forward. The old accelerator model may have worked in the past, but the landscape has changed. It’s not enough to simply replicate a program because it’s been done before. Instead, economic development organizations should focus on backing organizations that provide more tailored, stage-specific support. These programs are designed to build lasting relationships with founders, giving them the resources, mentorship, and community connections they need to build businesses that thrive. This kind of investment ensures that startups are not just scaling too quickly, but growing in a way that supports long-term sustainability and success.

As we wrap up our last Lightship Bootcamp of the year in Tulsa, Oklahoma, it’s a moment to reflect on how important this community-based approach is. We’ve seen firsthand the value of providing founders with the support they need to grow their companies, in a way that makes sense for them and their region. It’s made me think about how we can continue to support these entrepreneurs beyond the program and integrate these efforts into the broader ecosystem. This is why organizations like JobsOhio, the George Kaiser Family Foundation, Build In Tulsa, the Surdna Foundation, the American Family Institute, Ohio Third Frontier, and others have made investments in these new models of support. They see the value in building more sustainable entrepreneurship communities—ones that are not only dedicated to supporting founders but are also designed to attract new investment dollars, create jobs, and increase revenue in the regions they serve. These organizations understand that attracting and retaining talent and resources is key to economic growth and long-term prosperity. They’re not just looking to support entrepreneurs for a few months; they’re focused on creating the kind of thriving ecosystems that will keep tech companies growing and scaling for years to come.

What’s clear is that if economic development organizations want to make a meaningful, lasting impact on their local tech ecosystems, they must shift their focus to programs that prioritize sustainable growth, foundational support, and long-term community engagement. Early-stage investments are not about chasing quick exits or aiming for unicorn status in record time. They are about helping founders figure out what they are building, refining their business models, and providing the right support to grow at the right pace. By backing programs that focus on these principles, economic development organizations can create a stronger foundation for tech startups to thrive, ensuring that they contribute to the long-term economic vitality of their region.