Full Definition
An incubator is an organization designed to help early-stage startups succeed by providing workspace, mentorship, business development support, and sometimes funding. Unlike accelerators, incubators typically operate without a fixed timeline and focus on nurturing ideas from concept to viable business.
What Incubators Provide
- Office space and infrastructure
- Mentorship and advisory support
- Legal, accounting, and HR services
- Networking and investor introductions
- Sometimes seed funding or grants
Types of Incubators
- University-affiliated: MIT, Stanford, etc.
- Corporate: Run by large companies to foster innovation
- Government-funded: Economic development programs
- Independent/Private: Run by entrepreneurs or investors
Real-World Example
A biotech startup spends 18 months in a university incubator, using shared lab space and mentorship to develop their technology before seeking seed funding.
Related Terms
A fixed-term program that provides startups with mentorship, funding, and resources in exchange for equity.
The earliest stage of startup funding, usually from founders, friends, family, or early angel investors.
The simplest version of a product with enough features to attract early users and validate assumptions.
Building and growing a company without external funding, using only personal savings and revenue.
A high-net-worth individual who provides early-stage funding to startups in exchange for equity.
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