Incubators Vs Accelerators

The Complete Beginner's Guide to Incubators Vs Accelerators

Incubators vs Accelerators: Incubators and accelerators are different kinds of funding mechanisms that help startups to grow their business.

Firstly, with the help of a daily life example, I will explain to you what incubators are; let’s take an example of a premature baby as we know mature baby gets delivered in 9 months, but if the baby gets delivered in 7 months then obviously he/she will not be able to survive.

So, what doctors do to make that baby survive is that they provide the same kind of environment to the baby that he/she was getting in the mother’s womb, so for the same kind of environment they will keep the baby in a machine called incubator for some time.

Then after some time baby will be kept in a normal environment as now he/she is ready to survive in the normal temperature, so as this only incubators work they help the startups to make their name in the market to survive. 

* For accelerators let’s take an example of a walker that has been given to a baby to learn how to walk without getting hurt as walker gives them the support, so like this only accelerators help startups to make their name in the market.  

Incubators- A business incubator is a company that helps new and startup companies to develop by providing services. They help startups to perform better with the help of knowledge and experience.

 

Accelerators These are that organizations that help the startups to make their brand name a powerful one in the market. They help entrepreneurs in growing their business.

 

In the first paragraph, we came to know what incubators and accelerators are, now we will see what is the basic difference between Incubators vs Accelerators.   

Purpose:

Incubators- Help entrepreneurs grow. Accelerators- Help entrepreneurs grow.  

Yup! The purpose of both of them is the same, difference comes when we talk about how they work. 

Duration: 

  • Incubators-They takes a long time about six months to two years to help entrepreneurs gearing up their business. 
  • Accelerators-They takes a short time of about three months to six months to help entrepreneurs gearing up their business. 

Funds:

  • Incubators-They do not take funds in the startup nor do they take any stake in the startup, these are supported by grants and sponsorship from government and corporate’s
  • Accelerators-They offers a small seed investment and access to a credible mental network in exchange for equity or convertible shares. 

Program Application and Share

  • Incubators– Selection process highly relies on one-on-one interviews to assess the entrepreneur’s intent and criteria is heavy in the idea itself its the team’s capability and market potential. 
  • Accelerators– They are selected on a variety of things including the market fitness, the X factor of the founders, the fund ability, and the high potential of ROI (return on investment)for investors. 

Services that Accelerators give

Services that Incubators give:

  • All services that accelerators give. 
  • Marketing services and Seed funding
  • Finance services access to strategic partners.
  • Technical assistance intellectual property management.

The Major Difference Between Incubator and Accelerator is that (Incubators vs Accelerators):

Accelerators either charge fees as well as take equity in your business. BUT Incubators don’t take equity and even if they charge fees that too is very less. 

Incubators don’t charge fees as they are being sponsored by successful entrepreneurs, they put their money in this because they have taken the initiative to spread entrepreneurship in their country and to support everyone.

* In India incubators are very less, they are more in places like the United kingdom.  

According to NBIA(National business incubation association), The NBIA says that incubators work as a catalyst (those that speed up the process).

So according to my perspective incubators are the best as they do not demand equity nor they charge a huge amount.

But when we came on our topic that is incubators vs accelerators, Accelerators are good as they are available to everyone.

Yes they charge money but when a person can start a business he can also give some money to the accelerators to make their business stable and live long in the market.

I say accelerators good as there is a very tough competition to meet incubators as they provide services without any charge. And in India, there is very less number of incubators.  

Conclusion (incubators vs accelerators)

  • So, here we discussed everything about the incubators and accelerators and what is the difference between incubators vs accelerators. Hope you liked this article on the ( incubators vs accelerators ).
  • Just firmly go through the article you will be able to understand everything about the incubators and accelerators.
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