Entrepreneurs with an interesting business concept or Intellectual Property (IP) don’t always have the skills and relevant know-how to transform industry-disruptive ideas into commercially viable products. Aside from business know-how, they also need more funding than personal savings and contributions from close friends and family. Relying on a renowned startup accelerator program or incubator is an excellent way to kickstart a new company.
Both these organizations provide monetary support with additional tangible and intangible resources that startups need. Read ahead for detailed information about how incubators and accelerators work, so you can make an informed decision about the ideal program you would want to enter.
How Incubators and Accelerators are Similar
Both incubators and accelerators provide invaluable support in getting startups off the ground. Here’s how:
The benefits could prove invaluable if you can get into an incubator or startup accelerator program. By the time ‘demo day’ arrives, you’ll be ready with a working product and the skills to convince investors that your idea has what it takes to get them rich returns. At the same time, you’ll want to research how the programs are different so that you can choose the appropriate option for your line of work.
How Incubators and Accelerators are Dissimilar
Although both organizations are committed to providing a launch pad for startups, there are several dissimilar factors you need to be aware of:
Now that you have an overview of how incubators and accelerators work, understand the pros and cons before making the appropriate choice.
Alejandro Cremades is a serial entrepreneur and the author of “The Art of Startup Fundraising“. With a foreword by ‘Shark Tank’ star, Barbara Corcoran and published by John Wiley & Sons, the book was named one of the best for entrepreneurs. The book offers a step-by-step guide to today’s way of raising money for entrepreneurs. Most recently, Alejandro built and exited CoFoundersLab, one of the largest communities of founders online. Prior to CoFoundersLab, Alejandro worked as a lawyer at King & Spalding, where he was involved in one of the most prominent investment arbitration cases in history ($113 billion at stake). Alejandro is an active speaker and has given guest lectures at the Wharton School of Business, Columbia Business School, and NYU Stern School of Business.
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