Difference Between An Accelerator And Incubator You Didn't Know
To give more insight on accelerator, Paul Bricault, cofounder of Amplify, a Los Angeles-based accelerator defines it as “An accelerator takes single-digit chunks of equity in externally developed ideas in return for small amounts of capital and mentorship. They’re generally truncated into a three to four month program at the end of which the start-ups ‘graduate,’” he says.
After the startup develops its idea, incubator comes into the picture. Here, an incubator guides the startup to manage the idea which is already been developed. An incubator provides managerial support to a startup, and its program takes much longer than an accelerator. Its external management team helps a startup to kickstart their business and to venture into real market. It provides funds, and even provides space and man power, for startups to run the business. However, it would take a specified percentage from the profits, for rendering its service.
“Those ideas can gestate for much longer periods of time and the incubator takes a much larger amount of equity [compared to accelerators],” says Bricault.
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