Have you ever gone through the difference between the startup boosting steps of an incubator and accelerator? We have depicted the key distinctions in this article below!
What is an Incubator?
An incubator is a program that enables a startup in its initial stage by incubating great ideas prior to business models to increase profitability.
A startup incubator includes the personalities like angel investors, a venture capital firm, a government entity, or other organizations.
Many incubator programs help with the facility of professional mentoring to the new businesses in exchange for a minority stake in the startup.
Many business incubators are focused on one particular industry or vertical, such as fintech, marketing, or healthcare technology.
What is an Accelerator?
An accelerator is a program that helps startups improve or accelerate their growth by utilizing a great business plan and a basic strategy in place.
An incubator helps the infant company to grow, whereas, an accelerator assists toddlers to stand up on their feet.
Accelerators are great for companies that have more than just an idea and want to have faster and more efficient growth. They will be having competitive sense, as there is a wide range of scope in the space of accelerator. An accelerator program usually operates in a specific timeframe, compared to the more open-ended nature of an incubator.
The specific mentors help your company to reach its capabilities. Often they serve in exchange for equity. An accelerator facilitates investments and provides mentors.
Apart from relocating your startup into a co-working space, accelerators may offer private office space.
Accelerators are always there to help your company in the growth aspects in a short time.
What Is Right For Your Startup?
While making a choice between an incubator and an accelerator, it’s important to keep in mind that you analyze the current state of your startup. Going into an accelerator too quickly can create issues for your startup. Delayed joining an incubator can hamper your company’s progress.