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The differences between accelerator and incubators

Article incubators vs accelerator

  • “While incubators help companies stand and walk, accelerators teach companies to run.”

    Accelerators and incubators offer various opportunities for early startups.  Deciding whether or not you should pursue business through one depends on how confident you are about running your business. 

    Although both Accelerators and Incubators are companies that help new startup businesses to grow and develop through proper mentorship and guidance in order for them to succeed, there are few distinctive differences between Accelerator and Incubators that every startup should know as it might be quite confusing at times.

    The startup incubator

    The startup incubator is an unstructured program. It usually provides a physical office workspace for start-ups in their program and doesn’t have a specific goal or timeframe. Due to which this is less intensive and there is less time pressure. In addition, a startup incubator helps you build a company taking little or no equity in your company.

    The startup incubator gives you full control over your business and helps you to prepare to go into a more competitive accelerator program.

    The startup accelerator

    Unlike the startup incubator, within a short period of time, the startup accelerator provides a structured curriculum. It guides and helps businesses to rapidly grow and helps them to achieve a specific goal.

    The startup incubator is an intensive 3-4 month program. It is largely a mentor driven business network where everyone can apply. And although it is highly selective it helps you to develop the ability to fundraise and attract a large investment.

    Accelerators can take 6-8% of your company’s equity stake. Its ultimate goal is to provide you with ample resources and peer support and help your business grow fast and rapidly, increasing the value of your company.  Y CombinatorBrandery, and Techstars are some of the most well known accelerators.

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Kisu Rawal

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