Incubator
Also Known As
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
| Aspect | Typical Terms |
|---|---|
| Duration | 6-24 months |
| Equity | 0-5% |
| Investment | Often none |
| Format | Rolling admission |
| Focus | Very 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
- University Incubators: Connected to schools
- Corporate Incubators: Run by large companies
- Government Incubators: Economic development focus
- Independent Incubators: Private organizations
Incubator vs Accelerator vs Venture Studio
| Incubator | Accelerator | Studio | |
|---|---|---|---|
| Stage | Earliest | Early | Pre-idea to early |
| Duration | Long | Short | Ongoing |
| Equity | None/Low | Low | High |
| Involvement | Light | Medium | High |
Example Usage
“She spent a year in a university incubator before applying to accelerators.”