Bringing ideas to life and transforming them into a business requires time, effort, and patience. It is crucial to have a support network in place that aids in the early stages of a startup’s growth. Accelerators and incubators can be highly beneficial at this point. Many entrepreneurs rely upon these pillars seeking expert assistance in getting their business off the ground.
But first, let’s understand what the difference is between startup accelerators and incubators, and how both function.
What is an Accelerator?
An Accelerator is a program that helps startups to improve their product/solution, gain access to investors, networking opportunities, skills development, and advice from industry experts.
Usually, accelerators work with a startup’s founders over a certain period of time – typically three to six months – to ‘accelerate’ their growth and assist in the development of a business that is investment-ready and scalable.
In the early stages, startups are often given a small seed investment, which could be used to fund research, marketing, fine-tune a product, or hire new team members. In return, accelerators will usually receive a small share of the business.
E.g. https://dev.affine.ai/affine-deep-camp-accelerator-program/
What is an Incubator?
An Incubator is an organization that helps startups and individual entrepreneurs to develop their businesses by providing a full-scale support.
These are usually non-profit organizations, often associated with universities and business schools that extend invitations to students, alumni, and members of the community to take advantage of the program.
During an incubator, founders spend time networking with other entrepreneurs, building on their idea, determining product-market fit, and getting investment-ready.
Much like accelerators, incubators offer access to industry experts who can provide guidance and training, as well as the opportunity to network with other entrepreneurs and startups in the program.
E.g. http://www.incubation.iitm.ac.in/home
Key Differences Between Accelerator vs Incubator Program
Which One is Right for You?
Accelerators advance the growth of existing companies with an idea and business model in place. These programs build on the foundations of the startups to catapult them forward to investors and key influencers.
Accelerators operate on a set timeframe, which usually lasts three to six months. During this period, startups build out their business with the support of mentors and capital provided by the accelerator. At the end of the program, startups receive the opportunity to pitch their businesses to investors.
Incubators support startups entering the beginning stages of building their company. The startups
possess an idea to bring to the marketplace, but has no business model and direction to transition
from innovative idea to reality.
Incubators operate on an open-ended timeline. They focus more on the longevity of a startup and
are less concerned with how quickly the company grows.
Incubators and accelerators are both viable solutions for accelerating the growth of your startup. Before choosing your path, make sure you do your homework and ask a lot of questions.
(P.S) It is a rare opportunity for startups that Affine’s DeepCamp Accelerator program does not expect equity stake at all for startups if the solution is a game-changer.
You can check more about Affine’s DeepCamp accelerator program here:
https://dev.affine.ai/affine-deep-camp-accelerator-program/
