What Is The Difference Between A Startup Accelerator And A Startup Incubator?

If you’re a founder, or looking to become one, you may have heard the terms accelerators and incubators.

Whilst the two might sound quite similar, the truth is they couldn’t be more different. And whilst both exist to help founders scale and grow, the way they do that is completely opposite.

So, if you’re an entrepreneur trying to figure out which one can help your company really take off, then look no further.

What Is A Startup Incubator?

A startup incubator is a programme for early-stage founders that may not yet have developed their ideas into fully-fledged companies. They’re typically for companies that may not yet have a product or even more than 1 team member.

Incubators usually support entrepreneurs by helping them with everything from a shared office space to mentorship and advice, access to networks, training and basic legal or financial support.

Founders might stay in an incubator for months or even years, depending on how long it takes to get their business off the ground. The focus of incubators isn’t quick growth, it’s helping founders set up their foundations properly.

A lot of universities also have their own incubators, helping students develop businesses that may have started through academia. Regional incubators also exist to help boost local economies and support founders outside of areas like London.

In short: an incubator is for early-stage founders who need time, support and mentoring to help them get their business off the ground.

What Is A Startup Accelerator?

A startup accelerator, on the other hand, is for founders who already have a product and are ready to move fast.

Accelerators, unlike incubators, are short, sprint-like programmes that can last anywhere from 2-6 months. These programmes are designed to help startups scale, and fast.

Unlike incubators, who work with founders that may not even have a product yet, accelerators only work with startups that already have a minimum viable product (MVP) and a clear vision for growth. They usually run as set programmes that involve a certain number of startups going through together, all learning and pitching side-by-side.

Accelerators also usually provide a level of seed funding, as well as access to investors. In an accelerator programme, the period will usually end with a ‘demo day’ where founders pitch to investors to generate more capital.

Well-known examples of accelerators include Y Combinator, Techstars, Entrepreneur First and Seedcamp. Think of them as the bootcamps of the startup world: they’re intense, competitive and designed to have maximum impact in the shortest amount of time.

When You Might Choose An Incubator

If you’re still working out how to commercialise your idea and don’t yet have a product, an incubator could be the best place to start.

Incubators give founders advice, a space to work and long-term support. With the right incubator, you’ll get mentorship and a workspace surrounded by other early founders, all whilst giving you the space to build.

Incubators are also great spaces for solo founders looking to meet potential co-founders or those that need a bit more time before approaching investors.

When You Might Choose An Accelerator

If your startup is already building traction, then an accelerator could help you level up fast.

Accelerators are all about helping founders maintain momentum. The programme is structured to provide maximum guidance in the shortest period of time, the pace is intense and the focus is all about growth.

Accelerators are perfect for founders that are ready to scale fast and attract investors. They can also be a great accolade, with many investors looking to top accelerators to help them find the next big thing.

Incubators vs Accelerators

Both incubators and accelerators have their place when it comes to the startup world. Incubators take a slow and nurturing pace with early-stage founders, whereas accelerators give them everything they need to scale fast.

Figuring out the right choice depends on what stage you’re at, what you need and how quickly you want to grow.

The right one for you? Well, that’s something you’ll need to work out for yourself.