What happens to the startups in an accelerator when it stops accelerating? TechCrunch has reported on two accelerators that have failed to live up to their promise due to leadership mishaps, financial mistakes, and internal drama. Newschip, the Austin-based accelerator filed for bankruptcy, leaving its cohort of startups vulnerable to the whims of the court to decide who will sit on their cap table. And while Techstars is still running, leadership changes have created an internal nightmare. In both cases, the startups are the ones taking the ones left holding the bag.
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