If you have not yet heard of business accelerators and incubators, in this post we explain what they are and why they are so important for all those companies that need a boost, either to consolidate as a company or to move towards success. Several studies have shown that this type of initiative helps reduce business failure, making entrepreneurship a more accessible process with great chances of success.
Difference between the incubator and business accelerator
These are two concepts that are often used together since they involve processes belonging to the same field. However, we can find key differences and that you have to take into account to choose the best option if you are thinking of presenting an idea or project in one of its events.
This initiative arose in the United States in the 50s, from the hand of universities that were looking for the creation of innovative products related to technology at the hands of their students. Although, the concept as we know it today did not arise until the 1980s.
Over time, the services that this type of initiative offers are evolving and adapting to the new needs of entrepreneurs and their projects. Although, its main objective is to provide the necessary resources for the creation, development and maturity of business innovations. In short, they try to reduce the risk of failure of these new companies.
In general, they are usually divided according to the sector they promote, such as technological, social, cultural, agricultural, etc. Many of them are located in the geographical area where that sector can obtain more chances of success.
The first business accelerator as such was created in 2005, so there is a big-time difference with the creation of the previous one. Its main objective is focused on investments, not only to create new companies but to boost new ideas. There are three characteristic elements that define the meaning of accelerators and that add more value to accelerated companies:
In addition to these benefits, there are many other side effects that are generated simply by participating in these types of events. A clear example is the network of business contacts and the enriching experience of the discipline taught in acceleration programs.
Unlike incubators, which reduce the risk of companies failing to protect them from market forces, accelerators increase the pace of the process of including companies in the market. We have relied on the following dimensions to clarify a little the differences between the two.
If you want to find out more about this type of company resource, we suggest you take a look at this list of startups accelerators and incubators programs:
Its three-month programs are already developed in five European cities (Berlin, Amsterdam, Dublin, Copenhagen and London) and ensure that 70% of startups get financing. They offer 15,000 dollars per team to cover expenses and access to more than 500 mentors and contact with a network of 400 potential investors.
The biggest European startup accelerator, based in London. Seedcamp is famous for seeing beyond Silicon Valley, also looking towards Eastern Europe and emerging markets such as India. It offers 25,000 dollars per team. Of the 200 startups that have gone through the program, only nine have disappeared.
Estonia is one of the unsuspected places in the world that is becoming a destination for technology startups, and this Tallinn incubator tries to take advantage of the hype. It is aimed at startups around the world and has the support of the Estonian Government Development Fund.
In three years of operation, the Founder Institute has helped to create 650 companies in 39 different cities. They say their goal is to "globalize Silicon Valley," launching 1000 technology firms a year in 50 cities around the world.
Africa has something to say in all this: MEST is located in Accra, Ghana, and invests in 3 to 5 startups every year.
The startup program created by the Chilean government is a success story because they offering $ 40,000 to all startups, without having to give back shares in the company. The objective? Attract entrepreneurs with great ideas and, with them, investors.
Although focused on Asia, JFDI (Joyful Frog Digital Innovation) also accepts startups from abroad that want to do business on the continent. This is a 100-day program in which startups compete for extra investment after creating their projects and presenting them to investors. It is based in Singapore.
These are some of the many resources you have at your disposal if you need help to launch your business or your idea. We know that finding someone who supports you is not an easy task, so we want to help you by offering all the information you need to achieve your business goals.