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Comparison Terms

Incubator

Also Known As

Business IncubatorStartup Incubator

A startup incubator is a program that supports early-stage companies by providing workspace, mentorship, and resources over an extended period, typically without taking equity or with minimal equity.

What is an Incubator?

Incubators nurture very early-stage startups, often when they're still forming ideas or building initial products. They provide a supportive environment for companies to develop at their own pace.

Incubator Characteristics

AspectTypical Terms
Duration6-24 months
Equity0-5%
InvestmentOften none
FormatRolling admission
FocusVery early stage

What Incubators Provide

  • Office space or co-working
  • Mentorship and advice
  • Networking events
  • Basic business services
  • Community of other startups

Types of Incubators

  1. University Incubators: Connected to schools
  2. Corporate Incubators: Run by large companies
  3. Government Incubators: Economic development focus
  4. Independent Incubators: Private organizations

Incubator vs Accelerator vs Venture Studio

IncubatorAcceleratorStudio
StageEarliestEarlyPre-idea to early
DurationLongShortOngoing
EquityNone/LowLowHigh
InvolvementLightMediumHigh

Example Usage

She spent a year in a university incubator before applying to accelerators.