When an entrepreneur enters the world of startup, they are exposed to a completely new business vernacular. They are inexperienced and faces lots of problems daily. At a certain level, while developing their startup, they look for mentorship, financial help, experts, and assistance.
Many of them are successful in finding their requirement of funding, mentorship, or expertise for their startup, but a maximum of them failed to do this. This is one of the foremost reasons behind the breakdown of the startup in their emerging state.
Here comes the concept of incubators and accelerators as a life support system for a startup that is struggling to fight their existence in the business world. It is also the most confusing term for the startups and misconception that they consider both as interchangeably synonyms, which is understandable but incorrect.
Due to this, they fail to pick the right one for them. Though they both offer entrepreneurs, good opportunities but both of them have different purposes, have different outcomes, and accept different kinds of startups.
Startup incubators generally get the company started, but startup accelerators speed their growth. There is a very thin and blurred line between them.
Find the perfect fit for your startup here by knowing them in detail.
Incubators and accelerators have a different purpose to serve the startups. Incubators support startups in entering the beginning stage of building their company. Startups have ideas but not the experience and framework to translate ideas into reality. Incubators help them there.
Whereas startup accelerator advances the growth of existing companies with their business model. These programs help them to find investors and key influencers.
Incubators have unstructured time. Time duration is generally fixed by the founders according to their own schedule. They can take time from 6 months to even 5 years, which gives them lots of time to focus on every problem on the way of a startup.
While accelerators work on structured time. They set agendas and culminate in a demo or pitching session day. Accelerators are intense and fast, generally take 3-6 months to get an early-stage startup ready for market.
3. Funding and Equity
When it comes to funding, incubators typically don’t provide funding. They help you with office space, mentorship, and partner opportunities. But they can find investors via incubators’ network.
Whereas startup accelerator is mainly to help businesses with funding. They invest a specific amount of capital in a startup in exchange for predetermined equity. So, they bear a great responsibility for the success of a startup.