Startup Accelerators

Also, startups also tend to have shorter life cycles than small businesses. “A startup is usually considered one to five years of the life of the business,” says Fliss. “After that, they are typically entering either a growth, an exit, or a failure stage.”

In comparison, a small business is more stable. Brick-and-mortar stores can stay in the same community for decades. Even if they expand into new markets, that growth is usually at a slower pace, with the intention of retaining and/or increasing employee numbers. Financially, small businesses can project their annual income based on previous years and will often reinvest profits or apply for bank loans when additional funds are needed. Even online, small businesses achieve the same longevity by following this business model.

Startups have an economic impact in Alaska, but the exact impact is difficult to quantify since their contributions are lumped in with other small businesses. According to climate technology deployment accelerator Launch Alaska’s 2024 Impact Report, portfolio companies participating in their program last year raised $342 million, with sixteen awarded projects that created thirty-three new jobs in Alaska. The “All-Time Impact,” representing the value of both Launch Alaska portfolio projects and the value of partner projects directly supported by Launch Alaska staff, is significantly higher, with $655 million raised by portfolio companies, resulting in ninety projects that created seventy-seven new jobs. Many accelerator programs, such as Launch Alaska, are experiencing similar economic impacts among the startups they’ve mentored through the years.

Ideas on Ice

A common feature among startups is a focus on innovation that can result in a new product or service, or an innovative business model that improves how an industry creates, delivers, and captures value. Many startups in the past few decades have prioritized technology development and new methods for deploying technology.

Depending on an entrepreneur’s field of expertise, they often need to seek assistance with research, prototyping, or testing to bring their ideas to fruition. The UAF Alaska Center for Innovation, Commercialization, and Entrepreneurship (Center Ice) is an innovation accelerator that leverages the UA System’s best research to support startup development, facilitate the launch of real-world solutions, and promote scale-up and sustainability. Likewise, Center Ice provides an extensive range of programs that provide funding, training, and expertise designed to meet the needs of students, faculty, and staff.

Peter Webley, director and federal grants principal investigator of Center Ice, says the startups he works with are either founded internally at UAF or are external ventures looking to collaborate with researchers, receive training, or participate in a specific program. Though it’s easiest for accelerators to work with startups right out of the gate, he says many entrepreneurs come to them after attending a competition or completing another accelerator program.

“People use the center in different ways,” says Webley. “If they come early in their journey, they may need help with customer discovery. Later-stage startups may be seeking networking opportunities and advanced training that results in successful fundraising efforts.”

Center Ice provides a menu of programs to assist startups, including the Ideation Studio, I-Corps program, physical working space, testbeds, the Alaska Federal and State Technology Partnership program that prepares and assists entrepreneurs in writing grants, internship opportunities via the Students to Startups program, and support for the Alaska Mariculture Build Back Better Regional Challenge.

When a startup contacts Center Ice for assistance, Webley says his office assesses where the startup is in its journey and what assistance it truly needs before recommending programs. The time to establish connections and receive training, he adds, is before an opportunity to pitch to an investor or apply for a grant presents itself.

Out of the Comfort Zone

Webley finds that customer discovery is usually the biggest challenge most startups face. Often, innovators begin developing an idea without fully understanding who will ultimately use their product or service. Center Ice, along with other accelerator programs, guides startups through the process of engaging with potential customers to determine if their products truly solve their everyday needs. By talking to potential customers, startups validate their ideas, products, services, and the methods by which they are deployed and delivered. Webley says this process takes many innovators out of their comfort zone, where they find themselves having to talk with people outside their immediate social circle.

“Friends and family will support an idea because they want to support the entrepreneur,” says Webley. “That isn’t as helpful as getting honest feedback from people within their industry and potential customers.”

But what if talking to strangers about an innovation lets someone rip off the idea? That’s a common fear, according to Ky Holland, co-chair and founding member of Alaska Version 3, which bills itself as an innovation-focused community and economic development nonprofit. Holland says innovators are often hesitant to discuss their ideas for feedback because they’re worried someone will steal them.

In reality, he explains, the risk of this happening is minuscule compared to the real risk of not sharing ideas to conduct research and customer discovery. Many factors must come together in the right order for a startup to achieve success, making it unlikely that two people with similar ideas will produce the same outcomes.

“Sometimes it boils down to the right person or the right team at the right time under the right circumstances,” says Holland. “So many people hold on to what they think is their one big idea and never do anything with it.”

Holland says this “scarcity thinking” robs entrepreneurs of the opportunity to test their ideas to the fullest and possibly create something that has a real social impact on Alaskans and even the world.

Network of Support

Numerous startup programs, accelerators, and competitions offer Alaskan entrepreneurs opportunities to test and refine their ideas. Some accelerators serve a specific industry or region of the state while others are open to assisting startups regardless of their business focus or location. UA CED’s flagship program, Upstart Alpha, is one notable accelerator that offers training and networking opportunities with fellow entrepreneurs and prospective investors.

Fliss says startup accelerators often focus on the numerous building blocks at the foundation of successful business venture, such as marketing revenue streams, customer discovery, legal and regulatory concerns, and more. Many accelerator programs have additional goals for startups, including conducting first-round fundraising efforts, working with angel investors and other financial parties, or securing a spot in another program that would have equity investments.

University-based partnerships, such as UA CED, also connect directly with other programs in the Alaska ecosystem. Participating in other programs—such as the North Slope Marketplace, the Alaska Angel Conference, and 1 Million Cups—enables UA CED to guide entrepreneurs in the right direction.

For example, when an entrepreneur completes Upstart Alpha, they may be ready to work with the Alaska Small Business Development Center, so UA CED will facilitate a seamless transition. Fliss says that many entrepreneurs have also proceeded to gBETA, a program of gener8tor, a for-profit Wisconsin-based national startup accelerator that offers graduates cash in exchange for an equity share of the company.

Ups, Downs, and Ups

Not every startup will result in a viable product or service. Holland estimates that for every ten startups, seven will fail, two will do okay, and only one will become a spectacular success.

Despite the risks, Alaska boasts a notable roster of successful startups, particularly in the energy, transportation, and industrial sectors. These include 60Hertz, Montis Corporation, Be Cool Pharmaceutics, and Kartorium, many of which got a boost from startup accelerators.

Fliss finds that many successful entrepreneurs will face incredible challenges and even failures. This is where her roller coaster analogy comes in: many successful entrepreneurs have had multiple businesses they’ve had to either exit or shut down before hitting their stride. In other words, she says, neither challenges nor failures are an indication that it’s time to pack up and go home.

Fliss adds that new entrepreneurs might also assume that they are expected to be proficient in all aspects of running a business. UA CED often tells early-stage startups that they need to know just enough to get started. When growth begins, they bring in co-founders and other experts to fill the knowledge gaps.

Taking the Leap

Both Holland and Fliss agree that Alaska would benefit from additional funding resources and initiatives supporting entrepreneurship. And Holland is in a position to make that happen.

In 2024, Holland was elected to the Alaska House of Representatives for the Anchorage Hillside and Girdwood. When he arrived in Juneau in January, Holland introduced two bills to advance his cause. House Bill 30 would establish an office of entrepreneurship within the Alaska Department of Commerce, Community, and Economic Development. Its specific mission would be to promote innovation-based economic development and job creation in emerging sectors by assisting new businesses as they establish themselves within the state. And House Bill 34 would establish an Alaska Innovation Council to advise the governor, legislature, governmental agencies, research institutions, and private sector organizations on commercialization and economic diversification. Both bills were advanced to the House Finance Committee for hearings in 2026.

For those who have been holding onto a big idea and are ready to leap into the startup game, Holland suggests visiting Alaska Version 3’s Startups page for suggestions on making connections and getting involved. Alaska Version 3 also features the Entrepreneurship Calendar, which includes dates and times for regular networking opportunities, training programs, workshops, competitions, and more.

A few key events where people can learn more about the startup process include Techstars Startup Weekend, taking place from September 5 to 7 in Anchorage, and Alaska Entrepreneurship Week, scheduled for September 29 to October 3 in Anchorage. People can also contact any startup accelerator program to learn more about what it has to offer and the best way to get involved.

As Holland states in support of his Alaska Innovation Council bill, “A strong entrepreneurial climate is essential for attracting investment, encouraging creativity, and expanding economic opportunities for Alaskans.”