Aspiring entrepreneurs generally think a startup incubator and accelerator are the same . Here we shall look into what exactly does an Incubator and an Accelerator means for a startup .
Here we shall discuss in brief the benefits each offer entrepreneurs and how to determine which is best for your Startup.
STARTUP INCUBATOR & ITS BENEFITS :
For an Entrepreneur who is just starting to build his or her company , Startup Incubators are the right destination. There are different ways through which Startups can approach Incubators Some ,through an application process, while other incubators bring in startups according to the industry or some incubators prefer an early stage Startup . Through an Incubator , a Startup can start working on its operations to alter / modify / align its business towards the growth map they have planned .
The best part of getting selected by an Incubators is that they provide Startups an environment which is apt for Startups , considering the Mentorship they avail . Mentorship again depends on the field which Startup operates in or the business model of a particular Startup. A Mentor generally assists Startups to solve problems faced by Startups in their day-to-day operations & also they are a good learning centre for the Entrepreneurs themselves. There are other Networking Benefits at the Incubation camp too whereby other peer entrepreneurs may happen to show their seriousness about the future of your Startup.
STARTUP ACCELERATORS & ITS BENEFITS :
After graduating from an incubator, Startups must hunt for an head into an accelerator program. Accelerators, as the name is, moves faster than incubators: there are more mentors to work alongside, the time-frame is shorter, in some cases its just for a month too . Accelerators also provide mentorship & training.
Accelerators do provide startups with a bit of capital. Typically, this funding is merely a small seed investment — and yes, the startup does need to provide a small amount of equity in exchange.
Much like incubators, startups must also apply for accelerator programs. However, accelerators are more selective with the companies they bring on to their programs.
Accelerators receives millions of applications, and only bring on a handful of Startups who are ready to advance to the next level.
There is a Demo Day, which is like a Graduation day for which entrepreneurs and their teams work toward . This is an Event is attended by investors and members of the media. Entrepreneurs demonstrate what their startup does, its scalability and what makes it worth investment.
Hence if you are still figuring out the best fit for your startup & you aren’t sure, the best thing to do is do a little extra homework. Research a bit on which types of programs are available in your locality and consult with mentors and business advisors to ensure that you’re on the right track, too. After further research, you may be surprised to find that you’re a better fit for one program than the other.