All About Startup Accelerators and Incubators
Introduction
The barrier to entry for creating your own company today has significantly lowered, with over a million startups around the world doing their best to make their lasting impact today.
Despite the low barrier to entry, individuals looking to create their startup still require mentorship and guidance to get through a complex and often daunting world of profit margins and business meetings to see their dreams to fruition.
The first and arguably most important step an early-stage startup can take is seeking out the services of a startup incubator and startup accelerator. These ventures allow tech startups companies to reach the heights of entrepreneurship one step at a time.
In this article, we will be going through how to choose either a startup accelerator or incubator according to the needs of your team and your business, along with some of the best ventures operating in the UK today.
Startup Incubators
Many startups often face similar challenges when starting. To address these difficulties, startup incubators offer a collaborative platform for companies to come on board and get access to services. These can include but are not limited to seed funding, mentorship from highly experienced professionals, along with a series of training and workshops to make you a better entrepreneur.
Startup Accelerators
Unlike incubators, the main aim of an accelerator is to provide mentorship and support to businesses that have already moved past the initial stages of growth and are looking to scale their companies further.
Some of the services that accelerators commonly provide are seeking investors, and professional mentorship, along with curating a meticulous plan for the long-term stability of a company.
Incubator vs Accelerator
In short, early-stage startups would benefit the most from joining an incubator, as it allows you to gain access to a community of like-minded individuals, and receive mentorship from some of the industry’s finest professionals looking to tap into the youthful energy of young companies and scale them to greater heights.
For startups that have moved past their infancy, you may consider seeking the services of an incubator as they will be better equipped to deal with the unique challenges of a startup that is presently progressing and attempting to reach higher global standing.
From gaining capital to demo days and exposure to industry professionals, joining a startup incubator allows your young company to have a solid support system from which you can springboard to more success.
Best Accelerators and Incubators
- Platform-X
Long-gone is the days of hunting solely for profit. Many ventures these days are in search of companies that have dedicated themselves to making a positive and lasting impact in our society, and Platform-X is one such accelerator.
Platform-X typically invests up to $30 million and does not take any equity from its investments, making them, especially appealing to young startups.
- WeWork Labs
Startups involved in the FinTech and Tech sectors will undoubtedly have heard of WeWork — they are a startup success story themselves after all. WeWork operates on a subscription basis and has no interest in claiming any stakes in your startup for the services that they provide.
With a simple and honest framework, WeWork Labs is one of the most successful startup accelerators and incubators operating in the UK today.
- Entrepreneur First
Entrepreneur First is another change-minded venture that seeks out young startups with the potential to make significant positive changes in society through technology implementations.
Their deals typically start from $100,000 with a 10% equity stake, including opportunities for startups to engage in professional networking and mentorship sessions hosted by them
- RocketSpace
One of the emerging trends in technology right now is in the Agricultural and Mobility technology space, with startups innovating solutions to solve issues in these industries.
RocketSpace is a venture that seeks out and works closely with these companies to scale their businesses to greater heights and increase their present market value.
- Microsoft ScaleUp
Microsoft ScaleUp is the incubator arm of technology giant Microsoft, which aims to provide mentorship support from top sales professionals from Microsoft to young startups.
Their established branding and reputation make them a highly sought-after venture for young startups to partner with. Some of the companies they have engaged in recently include GoSlope and Openhour.
- Techstars
Techstars is a startup incubator and accelerator that seeks to partner with companies that include a diverse list of professionals from various fields. Their operating philosophy of working with wide skill sets makes them unique in a field where ventures tend to seek out specialized startups.
Some of the companies that Techstars has helped grow to include Coconut and Memgraph, which have become notable in their own right by attaining a boost from Techstars.
- Founders Factory
Founders Factory is a startup accelerator based in London. They are actively involved in the tech sector and routinely provide funding and support for tech startups, especially companies that solve global challenges with technology. Some of the most successful startups in their portfolio include Sampler and Luckytrip.
- Cylon
For startups involved in the skyrocketing cybersecurity space, Cylon is a great startup incubator and accelerator option that actively invests in companies innovating in this space.
Cylon has a distinct focus on working with startups that prioritize innovation and problem-solving and has been providing funding and support to allow more companies to disrupt the cybersecurity sector with new ideas and technologies.
Conclusion
Choosing the right accelerator or incubator for your startup to progress with is one of the most important decisions you and your team have to make.
Aside from looking at success factors like profits and offer packages, you can also consider whether or not the values of your company align with that of the venture you are looking at, as that can also significantly affect the direction and path that your company goes down.
Ultimately, your company will be best suited for a venture that aligns with your thinking and understands how best to scale your business models. This ensures optimal rates of success for your accelerator or incubator program, ensuring that your startup is ready to progress for future rounds of funding and increased rates of growth in the long term.
