What Is A Startup Incubator?

28 November, 2021 - by Praisy C Sunny

In the wake of the tech startup boom, the number of startup incubators has also increased. But what exactly is a startup incubator? Read on to learn more.

 

Startup Incubators, 

Startup incubators are collaborative programs that help startups succeed. They help entrepreneurs overcome some of the challenges that come with starting and operating a business by providing workspaces, seed funding, mentoring, and training. Entrepreneurs use startup incubators solely to grow their businesses.

 

Most startup incubators are non-profit organizations, run by both public and private entities. Some incubators are associated with universities, and some business schools allow their students and alumni to participate in these programs. There are, however, a number of incubators created by governments, civic groups, startup organizations, or successful entrepreneurs.

 

Even though most media attention is focused on tech startups, incubators are not just limited to one industry. In fact, the types of incubators vary by region. There are also all-purpose incubators that will consider startups of any sector.

Although many people link business incubators to the technology boom, this is not a new concept. Actually, the first  start-up incubator -- the Batavia Industrial Center , Newyork-- was formed in 1959. The Batavia Industrial Center was established in response to Batavia, NY's high unemployment rate and as a means of converting a vacant industrial building. Given the origins of the business incubator, it makes sense that the concept is making a huge comeback during the time of the Great Recession.

 

What are the most common services offered by startup incubators?

Here is a list of the most common services provided by business incubators:

  • Assisting with business basics
  • Networking opportunities
  • Marketing support and assistance with right channels
  • High-speed Internet access
  • Accounting/financial management assistance
  • Access to bank loans, funds and guarantee programs
  • Help with personal and business management skills
  • Connections to manpower and other resources
  • Connections to strategic partners
  • Access to angel investors or venture capital
  • Comprehensive business training programs
  • Advisory boards and mentors
  • Management team identification
  • Technology commercialization support
  • Help with regulatory compliance
  • Intellectual property management and legal counsel