Conference rooms for workers
In a coworking arrangement, multiple people work alone or in teams while sharing an office and its amenities (such as a shared printer, copy machine, and printer paper). Commercial businesses created for the sole purpose of leasing office space, cooperatively managed spaces, spaces sponsored by both large corporations and non-profit organisations, and so on all fall under the umbrella term "Coworking space."
In the early stages of a company's development, when funds are scarce and a permanent office location is out of the question, the founders and their team may choose to work out of a shared office space.
One benefit of joining a coworking space is that, unlike with incubators and accelerators, you won't have to give up any of your company's ownership in exchange for their help.
Increases in Both Incubators and Accelerators
There was a meteoric rise in the number of incubators and accelerators beginning in 2007, with the trend appearing to peak in 2016 due to the proliferation.
Commercial Incubators
Incubators for fledgling businesses work to improve their chances of success by assisting their founders in resolving the typical issues that arise during the early stages of a company's existence. The primary goal of every startup incubator is to aid in the development of the businesses housed there.
Public and private companies, academic institutions, governmental agencies, and non-profit organisations are all viable options for those interested in establishing a startup incubator. Incubators for new businesses typically offer a variety of services, including:
Advice and guidance for business owners
Councils of counsel
Possession of Means to Acquire Seed Money or Venture Capital
Helping Businesses Become Commercially Successful
Possibilities for establishing professional connections
Help with Financial and Accounting Management
Counsel on Intellectual Property
The Provision of Legal Services
Help in Advertising
Training
An incubator's primary goal is to help entrepreneurs transform their ideas into a successful firm from which the incubator can reap financial rewards.
The goals of a nonprofit incubator include expanding tax bases and the creation of new jobs. Government agencies usually run nonprofit incubators, whereas universities may pursue both altruistic and commercial goals through their incubator programmes.
It is usual for incubators to focus on specific industries, such as digital, agri-tech, media, finance, etc. Incubator acceptance is generally location-specific or requires moving to the area where the incubator is located. While based at an incubator, entrepreneurs can forge connections with like-minded individuals, collaborate on developing their products' marketability, and draught their company's strategic strategy.
Just like with Accelerators, the time spent in an incubator could only last a few months before the company is ready to pitch to investors.
Things to think about before entering an incubator
Do they have a history of creating profitable businesses?
When do their companies typically start seeing returns from their investors?
Is there access to industry-specific role models?
Do you require urgent capital to expand your company? If so, and you've got proof of progress, maybe an accelerator is the way to go.
Accelerators
Companies that already have a minimal viable product can develop more quickly with the help of accelerators (MVP). The duration of a company's stay in an incubator typically concludes when it has a viable product or service to present to potential investors or customers. Accelerators typically last a defined number of months during which time the entrepreneur receives support in the form of advice, financing, and introductions.
The application process for accelerators is lengthy and competitive. Those businesses with a minimal viable product and evidence of rapid growth are welcomed (MVP).
Accelerators use a variant of the incubation model, with a distinct approach to organising the incubation, expansion, and financing of their projects. Startup teams can receive training, constant monitoring, and guidance from experienced mentors during their time in an accelerator. They put together start-up teams for investor pitch events and connect them with VCs, angel investors, and corporate execs. Most businesses will eventually reach this position if they are unable to secure funding.
Considerations for Entering an Accelerator Program
Startup founders sometimes mistake being accepted into an Accelerator as a surefire ticket to the top, but joining one is a big commitment that requires careful thought.
Is this the perfect time? Perhaps now is not the best time to launch your product if you are still in the process of assembling a team, recruiting key employees, or developing an MVP. It's possible that an Incubator would be better suited for this purpose.
Startup accelerators help companies move quickly through the business development process, which can otherwise take months or even years. Do you think this is enough time for your business?
Do you think your rate of growth is fast enough to qualify for the accelerator?
You may find that the temporary nature of an accelerator's relocation need makes it unsuitable for your needs.
Do you believe you will still require assistance once you have graduated from an acceleration programme?
Depending on the outcome, accelerators' demands for equity in your firm could make it difficult to secure more financing.