What is a startup incubator?

What is a startup incubator?

Like most aspiring entrepreneurs, you are most likely imagining when you have the opportunity to become part of the incubator and develop your business concept.This is undoubtedly an annexing step for your startup.

If you’re only at the beginning of your entrepreneurial journey and not quite familiar with the term, don’t worry. In this article, we will present not only the concept, but also the advantages, the differences, and everything else you need to know about startup incubators.

Startup incubator is a separate type of investor, an organization that supports, promotes and finances innovative projects. 

The incubator not only helps start the start-up business in its early stages of its development, it‘s kind of like the Seed Investment Fund, the mentor and the business-angel in one person. Startup incubators are often non-profit organizations run by public or private institutions that offer programs to help entrepreneurs develop their businesses. This organization provides a range of services and resources for the effective development of small innovative enterprises with a view to raising them to a higher level – Global development, equity or sale.

Startup incubator is a separate type of investor, an organization that supports, promotes and finances innovative projects. 

How the startup incubator work?

Business incubator allows not only to help start-up entrepreneurs, but also get a

percentage of the profits in the future.

There are three ways to organize a business incubator:

Investment of own funds to promote the project. You can organize your own facility where they can apply. World-renowned business incubators (such as Y Combinator) have been created by start-up entrepreneurs.

Participation in government programmes. Various events are organized where young people can show their intelligence and creativity. The winner wins the grand. With the money raised, you can create your own startup incubator.

Combination of  several commercial organizations. Two or three institutions create a common incubator, attracting new people with fresh ideas.

3 Startup Incubators to Know

You might think this is a new topic, but incubators were actually born in the 1950s, and it’s not hard to tell that a lot has changed since then. According to Forbes, these are the top three startup incubators:

  1. Y Combinator – Founded in 2005 in Mountain View, California. Y Combinator has launched 300 tech startups. Y Combinator’s most famous graduates include Dropbox and Airbnb.
  2. 500 startups – Also in Mountain View, 500 Startups is both an accelerator and a seed fund. Member startups have access to a worldwide network of 160 expert mentors.

  3. TechStars – With programs in five of the top startup hubs (NYC, Boston, Seattle, Boulder, and San Antonio), TechStars hosts 12-week mentoring programs. 

How to start startup incubator?

The startup incubator allocates funds to fund the startup at an early stage. Only the presence of an idea is enough to apply to the inubator for help. You can form a team and register the company later. But that doesn’t mean that the incubator is the most loyal investor. You need an idea to start a business incubator. But it’s not just an idea – it’s a well-thought-out plan, a detailed and detailed presentation and a convincing vision. An entrepreneur needs to be prepared to negotiate, after all, a startup incubator is an organization created by experienced businessmen who have a broad enough vision to determine as accurately as possible the future of the project.

The startup incubator, as well as the mentor, provides advice and assistance on various issues:

– Selection of the optimal organizational and legal form of the enterprise and creation of statutory and registration documents;

– Building an optimal enterprise management system.

Stages of organizing a startup incubator:

  • It is necessary to define the conditions under which you will help to realize projects of other businessmen;
  • Search for a space to accommodate. The premises may be rented, but they must be fully equipped for work.
  • Once a business incubator is set up, it is important to inform as many people as possible about its opening.

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