In the current competitive and complex startup scene, the founders are on a continuous expedition for all kinds of competitive edge. Increasingly, the startups are searching for and edge in the investor and mentor relationships, which can be found in an accelerator or incubator.
What is right for growing your startup- accelerator or incubator?
Let us find out
The difference between accelerator and incubator
People often use the two terms- accelerator and incubator, interchangeably.
Accelerates assist the startups in accelerating their growth. The startups need to possess some initial traction and a team which is capable of working on the accelerating growth to associate with an accelerator program.
The accelerator programs possess a definite timeframe (which can range between a few weeks to few months) and provide firms access to their knowledge, network and funding.
Incubators support budding startups. They render access to an environment and infrastructure which helps in developing ideas and building their Minimum Viable Product. They are an excellent source of advice for start-ups, who are in their initial stage.
When you join an incubator, you locate your business physically in a central workspace along with other start-ups. You can even achieve a spot in the office of the incubator for a long period.
Pros and cons of accelerators and incubators
- Mentorship and learning
Some organizations like Y combinator and 500 Start-ups provide access to the sharpest business minds of the world.
- Access to investment
They provide access to investment either by introducing the Toronto enterprise to the network of potential investors or directly as a unit of the accelerator program.
Accelerators and incubators, which possess a good name and reputation will get you a good name.
Only a few Toronto enterprise can make into incubator or accelerator. Incubators and accelerators are over-subscribed and it not possible to pay attention to all the subscribers.
- Mixed quality
Accelerators are emerging from every corner of the world. Reputed accelerators give access to the best advisors, networks, and investors and help the venture in gaining a good name. However, not every accelerator can be termed as the ‘best’.
- Is the accelerator or incubator right for your startup?
The choice between an accelerator and an incubator will depend on the stage of your startup. Early or pre-traction Toronto enterprise demand incubator whereas, post-traction startup demand accelerators.
Consider two questions before applying for the accelerator or incubator program.
Is it affordable?
To secure a place in the accelerator or incubator program, you need to sacrifice a part of your startup’s equity or even thousands of dollars.
Usually, the start-ups do not possess much cash in their initial stages and thus, they need to hand over the equity to the incubators or accelerators.
Are you in need of it?
Do your research and find out the right program for you. Even after identifying the program, you need to consider what you want to make out of the program.