When people are at the early stage of their business, they always try to find out the best sources to fund their startups. During their journey, they come across two well-known sources of startup funding, accelerators and incubators. Both of them are capable of providing seed funding for startups. Some go for accelerators, while others go for startup incubation support, depending on their financial requirements at a particular time. However, people are still confused between these two funding sources. In this article, I will be talking about accelerators and incubators in detail.
Accelerators And Incubators
One important thing to observe while determining accelerators and incubators is the structure. Most commonly, accelerators are the professionals that set a period of six months. Oftentimes, they are individuals who prefer to invest while looking for some potential in your businesses. Within this time frame, they will be helping companies grow and tackle all the tough situations. Companies will be spending their wealth for six months while getting assistance from these professionals.
The process of an accelerator program begins with an application. Each of these accelerator programs could have a different fee structure depending on their reputation. Startups which are ready to begin their journey receive a few amounts as their seed capital. In addition to this, they receive strong support from a large marketing network which includes professionals, such as venture capitalists(VCs), startup managers, outside investors and industry specialists. All of them play an important role in an accelerator program. After the accelerator course gets completed, startups could see significant growth in their potential. Also, they have now laid their foundation and are ready to face the competitions in the future. If you get some good accelerator support, chances are that you will be dominating the whole game.
Incubators are mainly for businesses or entrepreneurs that have gone through some process. A primary difference between accelerators and incubators is that incubators do not work based on some schedule. Some of these incubator programs could be conducted by government agencies, organizations and VC firms, while others could be independent firms. In the case of accelerators, the application process is an integral part. There are a few incubator programs that have an application process. Another difference is incubators like to work as a co-worker in your company. Incubators have their own business in the area of co-working. On the other hand, accelerators do not provide the co-working facility. Some of them can offer office space, while others will expect from you to look for it.
Most of the time, companies will require to switch their current location in order to get support from incubators. In the incubation process, your startup will get to know how to adjust itself into the market. Moreover, incubation support can help you build a strong local community bond with some extra mentoring. Incubators provide support for one to two years. Also, they provide their assistance with less or no charges.
In this article, we have seen some details about accelerators and incubators. Both are needed during the initial stages of the business for seed capital. It is necessary from your side to choose among them. You can analyze your financial condition and go for them according to it. India is a country which has a plethora of accelerators and incubators. You can easily find seed funding for startups in India because the country is a house for several businesses. Startups all around the world always try to expand their business. They can leverage the benefits from these sources on their road to success.