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What is the difference between startup incubators and accelerators?

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What is the difference between startup incubators and accelerators?
posted Mar 14, 2018 by Sumeet Vyas

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An incubator can be thought of as a beginning place for startups. Incubators usually take on teams that have just begun to turn their idea into an actual company. Incubators usually give early-stage startups the right tools to boost their company forward such as co-working space and mentors. One of the main purposes of an incubator is to push startups to test their products as much as they can and develop a scalable business model. Many incubators are specialized into sectors, such as FinTech, MedTech and etc. If your team has an MVP or the business is pre-revenue, then an incubator could be the perfect opportunity for your team! Think of them as primary school, where startups learn the basics.


Accelerators, on the other hand, are for more developed startups. Accelerators usually look for startups that have had initial traction, built a team that is confident in executing their idea and has at least a prototype of their product released. Accelerators are usually very intensive, making startups achieve growth that would usually take years. Once a startup is in an accelerator, the accelerator offers a huge network of mentors, investors and professionals, investment (sometimes in return for some equity) and usually some workspace for the startups. One of the most major functions of an accelerator is to get a startup ready for investment. This means utilizing the initial traction to catapult the startup to a revenue-generating company. If incubators are middle school, then accelerators are a college for startups.

answer Mar 22, 2018 by Durga Prasad
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