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Home Business Startup Incubators Vs Accelerators | Which do you choose?

Startup Incubators Vs Accelerators | Which do you choose?

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You may want to know which one to explore startup incubator vs accelerator! Most startups are found to less fit for being an accelerator and more in an incubator. New entrepreneurs are exposed and find themselves lost in those tough business jargon like venture capital, seed funding, crowdfunding, angel investor, etc. Entrepreneurs previously had the misconception of assuming the use of incubator and accelerator interchangeably in the form of synonyms, which is incorrect.

Related post: How to run a Startup Accelerator?

Startups are provided with adequate guidance from both the programs and to advance their business strategies and models. Their primary objective is to provide support to startups to improve its value and attract investors in huge numbers. But there lie some key differences between incubators and accelerators.

Startup incubator vs accelerator 

Startup incubator vs accelerator

Startups during its early stage avail support from incubators. Startups are aggressive to reach the marketplace, but without any proper direction for transitioning to reality from innovative ideas or business model to follow. Existing companies can enjoy improved growth with the help of accelerators by having business models and ideas in place.

Also Read: How to start a startup company in china

Application procedure

A good amount of resources and time is invested by incubators to help advance local startups. However, they end up finding ways to help the intellectual property to obtain a license or in job creation. Less pressure is upon incubators to deliver fast-growing startups since their charter is limited to supporting and boosting local startups. Hence, a less scalable or slow-growing business can be a candidate for the incubator. On the other hand, a more formal and traditional approach is taken by accelerators to enter the program. For select program slots, participants are to make applications. Moreover, the programs are quite competitive, since only the top startups are selected by the accelerator from all over the country. Also, the startup needs to show quick growing ability within months, be investable and scalable.

Also Read: Alternative Business Financing Options in 2020


This is one factor to be considered when researching startup incubator vs accelerator. Open-ended timeline is opted by incubators and they focus upon startup longevity and not much on quick development of the company. They also mentor startups for about a year & a half or so. But accelerators operate on a given time period, generally about 3-4 months. Startups are expected to develop their business within this timeframe with their mentor support and capital offered. On completion of the program, new startups are provided with several opportunities to lure investors.

Hence, it becomes crucial to undertake thorough research on startup incubator vs accelerator to know which one to choose.

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