Incubator vs accelerator: What’s the difference?
As an entrepreneur, starting a business can be tough. Thankfully, there are hundreds of training programs around the world to help take your business to the next level. But how do you know which program is right for you? Should you join a business accelerator or a business incubator?
To start, it’s important to learn the difference between incubators and accelerators. Below, we’ve broken down everything you need to know so you can make the right choice according to your business needs.
Incubator vs accelerator
The primary difference between an incubator and accelerator is that incubators work with entrepreneurs who have an idea for a business, whereas accelerators work with entrepreneurs who have an existing product or offering. Let’s dive deeper into the two.
What is a business incubator?
If you’re an entrepreneur who has an idea for a business, an incubator may be for you. Business incubators are meant to take you from the idea stage into the launch stage.
Incubators typically accept applications on a rolling basis and the process tends to be less rigorous. Once accepted, you’re often given a desk or office in a physical location, offering a collaborative working space for a monthly fee. There is no set duration and you may continue to rent and use the resources for as long as you need.
While in the incubator, you will be surrounded by other entrepreneurs and experts—providing networking opportunities with like-minded individuals who can support turning your concept into a reality.
What is a business accelerator?
If you’re an entrepreneur with a proven product, an accelerator may be for you. Business accelerators are meant to rapidly teach you how to accomplish goals such as increasing revenue, expanding into new markets, and creating more jobs.
Accelerators can be competitive and most follow a strict schedule for applications, have clearly defined start/end times, and set timelines for training and funding opportunities. Instead of being in a physical space, accelerators are often online and follow a cohort-style program where you progress as a group.
Through networking, mentorship, training, and angel investment opportunities, accelerators help take your business to the next level.
How to choose between an incubator and accelerator
To determine whether you would benefit from a startup accelerator or an incubator, evaluate the stage of your business needs. Here are some questions to ask yourself.
What stage is my product in? Incubators are ideal for entrepreneurs who are in the ideation phase or who have just started building out their product. Accelerators are meant for early-to-middle stage startups who have a viable product that has proven value.
Would a physical space benefit my business? Most incubators offer shared working spaces with office resources available. If you’re an established business with an office of your own, you may be ready for an accelerator.
Am I looking for funding? Due to the fact that incubators are for those in the ideation phase, they don’t always provide funding opportunities. Alternatively, accelerators often provide various opportunities for investment in your business.
What is my timeline? If you’re looking for long-term support, an incubator may be the best fit as they are open-ended. If you’re looking for rapid growth, accelerators have a set start and end date, often wrapping up in less than one year.
Still unsure which is the right fit for you? Take a look through a handful of accelerator applications to see if your business meets the requirements to apply. If not, you may benefit from joining an incubator, where you can start working to meet those requirements in the future.
What is the Because Accelerator?
The Because Accelerator is a 16-week program for entrepreneurs with a physical product. Unlike most other accelerator programs, the Because Accelerator provides long-term training, networking and investment opportunities beyond the initial cohort.
The Because Accelerator is completely free and is open to businesses around the world. Each entrepreneur is required to dedicate 4–6 hours each week to attend training sessions, one-on-one meetings with a coach and virtual networking events. Training includes topics such as the entrepreneurial mindset, developing a marketing plan, revenue strategy, e-commerce and customer retention.
Upon completion of the program, entrepreneurs will have a completed business model canvas, a polished pitch for investors, progress towards a set goal, and an opportunity to participate in a pitch competition for funding.
If your physical product-based business is creating jobs and is ready to enter the next phase of growth, apply to join the Because Accelerator.