Incubators vs. Accelerators


Key Takeaways

Full Text

For startup founders, it is important to understand the distinction between startup incubators and a startup accelerators. The key characteristics of each are discussed below.

Incubators are appropriate for new startups that need help figuring out their value proposition. They operate on a flexible timeline. Businesses entering such programs are often in their earlier days, still fleshing out ideas, creating business plans, and networking. The incubating period is flexible and can last for various lengths of time depending on a business’ needs. Sometimes the process ends with a presentation to the incubator community and investors.

Accelerators, on the other hand, are designed to expedite the growth of existing companies who have a minimum viable product and demonstrated growth. They are often given a small seed investment and are then introduced to a large mentor network. The goal of their several months with the accelerator is to skyrocket success of a proven business idea. The program ends and the progress, growth, and milestones hit are highlighted. There is sometimes a presentation to investors and the media.

The decision to apply to accelerators or incubators should consider several key things. If a business is in its early days and it still figuring out basic elements of their processes, then an incubator is a stronger fit. If a startup has a minimum viable product and is looking for help increasing success, an accelerator is the way to go.

As always, should you have any questions about anything contained within this Insight, don’t hesitate to get in touch with us via call, text or e-mail using the contact details listed in our site footer, or via the form below.

Disclaimer: Please note that the information provided in this blog post does not, and is not intended to, constitute legal advice. Rather, all of the information, content, and materials available on this and every other page of our website is made available by us for general informational purposes only. The information in this post or anywhere else on this website may not constitute the most up-to-date legal or other information, and should not be relied upon for making any decision, acting, or refraining from acting. All liability on the part of Chatterjee Legal, P.C. and any and all of its attorneys and/or other professionals with respect to decisions made, actions taken or actions not taken based on the contents of this blog post, this page, or this website is hereby expressly disclaimed. The contents of this blog post, this page and this website are provided on an “as is” basis, and no representations are made that such content is free from errors. Our content contained within this post or elsewhere on our website may link to websites, content or other resources belonging to third parties. We present these links only for convenience purposes, and we make no representations or warranties of any kind with respect to any such third-party websites, content or other resources. Access to and/or use of this blog post, this page, or this website does not create an attorney-client relationship between you and Chatterjee Legal, P.C. or any of its attorneys or other professionals.

Share This Insight
Related Articles
Startup Lawyer

Startup Lawyer

The choice of a lawyer to assist with the formation and operation of a startup is an important decision. We lay out key considerations when choosing a startup lawyer.

Read More

This site uses cookies to provide you with more responsive and personalized service. By using this site, you agree to our use of cookies.

For more information, click here to review our Cookie Policy.