Accelerator vs Incubator vs Ideaction: Which One to Choose for Your Startup?
If you are a startup, or thinking about launching one, then incubator and accelerator are two terms that you will likely come across. Both are venues that allow startups get their operations off the ground and provide funding and additional resources.
While both terms are sometimes used interchangeably, there are differences between the two. In addition, Ideaction also provides a way for startups to launch their product.
Below are some of the main differences between an accelerator and an incubator. Also, see where Ideaction comes in the picture when talking about a startup launch.
What Is a Startup Accelerator?
A startup accelerator usually refers to a fixed-term program that includes mentorship and training. Accelerators also help startups access funding.
Participants in an accelerators usually have an idea and even an MVP and they learn how to expand their operations, develop a strategy, and build their brand.
Y Combinator was the first accelerator. It was founded in 2005 in Massachusetts.
More than a decade and a half later and currently there are hundreds of accelerators in some of the top tech hubs around the glob: San Francisco, New York, Singapore, Tokyo, London, Berlin, etc.
According to Gust’s Global Accelerator Report 2016, 579 accelerator programs across the world helped more than 11,000 startups raise over $206.70 million.
These numbers have increased significantly compared to the previous year, when some 8,800 startups raised $192 million through 387 accelerator programs.
What Is a Startup Incubator?
A startup incubator helps very early-stage enterprises start their activity. The scope of the resources they provide is wide and covers everything from funding to guidance to work space.
Incubators are often run by not-for-profit organizations, such as government bodies. By comparison, accelerators usually get their funding from corporations and establish strategic partnerships with them.
Accelerator vs Incubator
There are a number of differences to consider between accelerators and incubators. The most important one is the stage of enterprises they accept into their programs. Accelerators take in companies, which have already started some operations and usually have an MVP. Incubators accept entrepreneurs that have just started.
Similarly, incubators allow startups to set up office in their location.
Accelerators encourage startups to find space on their own. The physical space that accelerators have is for their own operations and events. Startups can use the space to share and take advantage of the accelerator’s resources.
Where Does Ideaction Come In?
Ideaction provides a way for startups to launch their product. In addition to software development services and Minimum Viable Product development, we have an offer for entrepreneurs and startups to fully develop their product.
Our strategic location allows us to built great software products at a fraction of the cost compared to the US. For example, a mobile app developer in the US has an annual salary starting from $105,000. Ideaction provides mobile app development from $3,000 per month, which results in annual costs of just $36,000.
Our Deal for Partners
While there are hundreds of accelerators and incubators, there also are over 100 million startups that launch every year. This allows most accelerators and incubators to be picky about whom they accept. For example, one common criteria is for a startup to have more than one founder.
At Ideaction, we don’t care about how many founders are behind an idea. All we care about is that the idea is viable and the people behind it are fully-committed to implementing it. We can provide all the necessary resources and even cover a part of the costs.
Let’s say you have an idea for a product, but don’t have the time and resources to implement it. We can act as your partners and provide developers and designers to bring your idea to life.
Moreover, we will cover up to half of the costs not only during the development stage, but also after the launch. In exchange, we can agree on a small share of the company’s future profits.
[…] Accelerators and incubators are often bundled together and used as interchangeable terms. However, there are a number of important differences between the two, which you can check out in our blog post on the topic. […]