Accelerators vs Incubators vs Studio
What do you need for your start-up?
Start-up Accelerator or Start-up Incubators or Start-up Studio?
Yes, they are different, and you need to choose wisely.
A common confusion amongst the founders is that they use accelerators and incubators interchangeably and most of them aren’t even aware of Start-up Studios.
This might help you understand the difference.
Main Objective: To accelerate the growth of a start-up. Basically, get you up to Pitch Event or Demo Day.
Who is it run by: Strategic divisions of established businesses and investment firms.
How to join: Based on the focus area and stage, you apply and hope to get drafted for the cohort.
When can you join: When you have a team, plan and MVP ready with some early traction
What do they provide > A structured training, networking, office space, and in some cases seed capital.
Relationship period: 3-4 months.
The Price Equity in your company, usually around 7%.
Example: Surge by Sequoia, Accel Atoms, Kstart by Kalaari
Main Objective: To turn your ideas into businesses.
Who is it run by: Academic and government institutions, usually not-for-profit and run with Corporate support.
How to join: Based on the focus area and stage they announce a cohort every year.
When can you join: When you have an idea that is validated, a good story even.
What do they provide: Mentorship, networking and infrastructure (Office space + accounting, access to business loans, regulatory assistance, IP management, etc).
Relationship period: Till your company can start sustaining itself in the market
The Price: Nothing actually.
Examples: NSRCEL, NASSCOM 10,000 Startups, Atal Incubation Centre- BIMTECH, Tata Elxsi
Main Objective: To convert your ideas into businesses and help you scale, playing the role of a co-founder.
Who is it run by: Serial Entrepreneurs and Corporations.
How to join: No batch system, you can set-up a call and enroll.
When can you join: Just a good idea.
What do they provide: Funding and the resources you want, HR, Technical, Strategy, everything you need to make it work.
Relationship period: Like a co-founder, till you find an exit.
The Price: A lot of equity, let’s say 30% for being like a co-founder and another 10-20% for all the resources.
Examples: T9L, Appriffy Labs, Prototyze, SAP Startup Studio.
Each of them has a different objective and your need as an entrepreneur should be aligned with theirs.
Again, choose wisely.
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