Incubator vs. Accelerator vs. Venture Builder

We’ve heard a lot about Incubators and Accelerators but how these startup eco-system players are different from Venture Builders? And what are the options to enable innovation for entrepreneurs throughout their startup journey?

When entrepreneurs step into the world of startups, they are similar to what newborn babies are, who need nourishment to bring about the material manifestation of their ideas to fructify in the real practical world. Incubators are like mothers providing the initial support for their entrepreneurial babies when they step into the start-up world.

Whereas, the Accelerators are like fathers who teach their entrepreneurial kids how to ride a bicycle (run a startup), so that they get on to the fast-paced plane and gear towards growth within limited time-frame. There are also Venture Builders who adopt startups or ventures as their own and become a big daddy to them in industry. Now, these three are the most significant boosters that any startup vouch for to grow further.

In this article, we do a glimpse analysis and discuss the inherent similarities and differences along with the major functions of these tripartite. So, let’s start with incubators.

Incubators

Incubators are institutions that support entrepreneurs in developing their startups or ventures, especially in the initial stages. These are a highly flexible combination of business development processes designed to nurture and grow new and small startups by supporting them through the early stages of development. As early-stage hand-holders, incubators act as an integral part of the overall start-up ecosystem.

Good Examples of Incubators — DTEC (Dubai Technology Entrepreneur Centre), In5, Astrolabs, Fintech Hive, Turn8 etc.

Different types of Incubators

• Academic institutions
• Non-profit development corporations
• For-profit development ventures
• Venture capital firms
• Government organisations.

Major Functions of Incubator

• Idea screening, mentoring, coaching and providing access to seed capital.
• Establishment of the company and technical support towards concept development of prototype along with pilot testing.
• Business capacity building and development support for business planning, company management like accounts, taxation, legal, etc.
• Development of revenue model and financial projections. It provides linkages to potential strategic markets along with visibility, credibility in the marketplace.
• Networking events, training, exhibitions, and workshops.
• Incubation support includes providing technological facilities and advice, co-working spaces, lab facilities.
• Progressive evaluation for a transition to the next stage.

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