Incubator

A programme that helps build a company from close to nothing, often providing space, services and sometimes a founding team.

Example

A venture studio that assembles a team around an internal idea.

Important

Incubators typically start earlier and take more equity than accelerators. The distinction is fuzzy and worth asking about directly.

Related terms

• Accelerator — A fixed-term programme giving a small investment, mentorship and a demo day in exchange for a few percent of equity.
• Venture capital (VC) — Professional investors who manage a fund of other people's money and invest it in high-growth startups in exchange for equity.

Lessons that explain it

• Who the investors actually are — Angels, VCs, accelerators, family offices, corporate VCs, private equity, venture debt. They want different things — pitch them differently. (12 min)

All 176 terms in the Founder glossary