Whether simply to understand what are the business incubators and accelerators, which startups are most in demand among investors? Overview of current programs Ukrainian innovation accelerators is present by Prostobiz.ua
The main difference between incubators and accelerators for business is that the driving force for incubator is space (infrastructure), where your team will sit and work, and in the accelerator - the value that can carry your innovation to the market.
The incubator all aimed at building your business, even if one person came up with the idea. Here he can meet like-minded people who can help you to understand how your idea is good.
In the accelerator immediately tested for survivability and the idea and the product / service that it carries. But there stands come already equipped team. Most importantly, what will help the accelerator - to enter the market with a new product concept to get a confirmation from potential customers about its necessity and value.
So, if you are looking for place for implementation your ideas, and if you do not have enough allies in the team - you should to go the business incubator. If you have a fully independent team that created the product and in need of professional advice on how to effectively bring it to the global market, or how to get positive feedback from first time buyers – you should to go to business accelerator.
And now about the service. Incubators provide mainly consulting services and help to present the project to the investor. Sometimes provide future entrepreneurs office, finance and technical base, organize educational activities. In some cases, also offered a small investment.
Incubators who focused exclusively on consulting, usually, do not push strict rules for selecting projects. Their client can become every entrepreneur or team with the idea, and desire to embody it.
As for the accelerator, they work individually with the project, which has passed the competition, attracting financial resources and experienced expert mentors. Their main objective is to share with startups for a limited period of investment and create an attractive product at a working version or prototype. Often these projects are subsequently receive venture capital funding from foundations, working directly with the accelerator.
To be participant of acceleration program means difficulty to get office space and initial funding because in this case scrupulously selected ideas and projects, also evaluate their investment potential. The accelerators usually invite high-tech projects, budding for significant growth.
List of service that gets participant of accelerator is:
- Mentoring - work with entrepreneurs specialists in different areas. This can be technological, financial, legal experts, business consultants. To work in accelerators invited successful entrepreneurs, actively carried out educational programs, workshops, coaching.
2. Education - in addition to mentoring and consultation on the project directly, many programs include workshops, training, lectures and workshops in related fields. Thus, the teams can reach the knowledge that may be necessary for business development in the future.
3. Infrastructure - Accelerators provide office space for project work. Team provided by office equipment, Internet access. This causes a local binding of accelerators: teams need to move to the city of the program holding.
4. Информационная поддержка – акселераторы являются брендами, обладают связями и медийным влиянием, поэтому проекты получают широкое освещение в прессе еще на момент попадания в программу.
5. Information Support - accelerators are brands and have connections, media influence, so projects get press coverage before getting into the program.
6. «Pre-seed» investments - financial support for start-ups is required for entry into the program. Many accelerators investment partners participate during the examination of applications, and only those projects that receive " Pre-seed investment" may participate in the accelerator. «Pre-seed investment" cover the costs of the team during work in startup and let you request a third-party development for the preparation of a project prototype.
7. Investor Relations. Startups working in accelerations programs initially attracted the attention of investors. This is explained by the fact that accelerators have earned a good reputation among investors. In accelerators initially get the most competitive, strong and promising projects. Potentially, relations with investors, which are obtained by the participants of the accelerator, increase the chances for attracting the next rounds of investment.