Startup Incubator vs Accelerator: Which is an Ideal Key for Your Startup Success?

Startup Founders, is it Really Worth Joining Hands with a Startup Incubator or a Startup Accelerator?

They say you need a village to raise a child, similarly, you need the whole economy to start a business. As a small business owner, you will receive a ton of information in the early stages of your new business.

Risky startups, you know! There are so many factors that can make or break a startup, from finding the perfect investor to finding the perfect employee. Even if setting up a startup sounds like a worthwhile achievement, how do you get started on this entrepreneurial journey without any prior knowledge? This is where the Startup Incubator comes in.

“Statistically 9 out of 10 Startup Fails”

As indicated by this Fortune article, 90% of startups will never make it to the major leagues, for the accompanying principle reasons:

  • They ran out of money
  • Bad product
  • Missing business model
  • Disharmony in the team/investors
  • Lack of funding

Just to mention a few…

Therefore, it is very important for a start-up looking to the world stage to seek support from a startup incubator or accelerator to help alleviate some of the problems that may arise in the new future. Let’s bring some light in the darkness by deciding which is a better option to rely on – A Startup Accelerator or a Startup Incubator?

What is a Startup Incubator? – A Business Boot Camp

Startup Incubator is a collaborative program for startups – usually physically in a central workplace – that aims to contribute to the success of infant startups by providing employment, seed funding, mentoring, and training.

Incubators are known for nurturing “New-flanged” ideas and refining them to develop viable business plans. As an incubator, they focus on mentoring and supporting technology innovators and entrepreneurs in testing their ideas.

Startup Incubators are organizations that act as a lifesaver for small businesses and start-ups to endure and grow in their beginning stages. This association offers entrepreneurs a safe and accessible environment to stimulate their business

  • Incubators typically provide physical space, advice, management services, and financial and technical support for growing businesses.
  • Business owners can also be saved with additional services such as accounting, marketing and networking provided by some incubators.
  • The main goal of this organization is to improve your business and take it to the next level.

By identifying the difference between an accelerator and Startup Incubator, you will discover what is best for your startup

What is a Startup Accelerator?

As the name suggests, accelerators help start-ups accelerate their growth. Accelerators are programs that aim to accelerate growth over years and start over several months. It is designed as an intensive educational program to make startups worthwhile and eligible for funding.

Accelerators prefer to accept start-ups that are marketable and have strong founders.

Difference Between a Startup Incubator and an Accelerator – Let’s Begin!

Many founders mistakenly use the two synonymously! Accelerators and startup incubators have very similar properties, but there are key differences.

Accelerators ordinarily offer help administrations, including tutoring, systems administration, networking, and access to finance, in order to aid the startups to grow faster within their clusters. Some accelerators are also investing in their startup cohorts; some invest a fixed amount in equity.

Unlike Accelerators, Startup incubators are more flexible and offer startups the right environment to jump off the ground. Many incubators offer office space and networking opportunities. In an incubator, you will be with other entrepreneurs in the industry or a similar stage of development. Founders can benefit from a number of benefits and benefits available to members. Incubators are less selective than accelerators as well as they do give them early access to their network of angel investors and venture capitalists.

The main objective of Business Accelerator is to accelerate business in its early stages. While Incubator focuses on turning ideas into reality and making all resources available to them.

Incubators invest in start-ups over the long term and invest more time and resources than accelerators.

Let’s Find Out the Pros and Cons of Startup Incubators and Accelerators!

Taking a Deep Dive into the Benefits of Startup Incubators

Start-up Incubators are part of many successful start-ups. The long list of benefits that incubators offer can really change the game for your business.

Affordable prices for the workplace

The most useful aspect of a business incubator is that it provides an accessible workspace for beginners. Entrepreneurs don’t have to worry about expensive rental or construction costs.

Joint operation cost

Employers can benefit from additional savings by sharing operating costs with fellow tenants. Business tenants share their overhead costs such as office equipment, utilities, conference rooms, and more.

Strong network partner

One of the main advantages of a startup incubator is that it offers a wide range of strong networks right from the very start of your business. Many media and technology partners are ready to help startups and small businesses supported by incubators.

Good financial access

Lack of funding can be the biggest barrier for startups. Renowned business incubators have good alliances with venture capitalists and banks, so tenants can benefit from better financial support.

Experienced mentors

It is important for startups to limit critical scaling errors. Most incubators have highly-experienced staff as well as varied industry leaders in order to help the core team stay focused yet avoid mistakes. Incubators typically hire mentors with some initial experience who can help explain the criteria for process, planning, and decision-making – while also directing new entrepreneurs away from costly mistakes they have made or witnessed.

Software Discounts

Initiating from accounting to the management of projects, incubators widely offer extensive enterprise software to help scale their startups grow boundless. Pricing and training are usually reviewed and standard rates are agreed to allow portfolio companies to operate properly.

Let’s Consider the Cons of Startup Incubator

Growth-oriented industry

If you want to influence a specific market sector with your product or service, it makes sense to join a start-up incubator. However, if you run a simple lifestyle business, this may not be the perfect path for you.

Since the incubation industry is rooted in growth, companies looking to just sell or just a side project are not necessarily eligible for such a program. The startup incubator is associated with “great success”, which makes it strive to grow at all costs. Unfortunately, this is not the goal of all entrepreneurs.

Potential Pros of Startup Accelerators


 Just like a business incubator, you can expect a startup accelerator to give you more access to a network of connections within the startup community, mentors, and vendors who can help you build your business quickly. Mentoring is another common topic that comes with an initial investment in many tech startups and is sometimes offered by many angel investors.


With limited time, some entrepreneurs may find that business accelerators help them know what to do and when to do it.

Potential Negatives of Startup Accelerators

Short lived

The disadvantage of accelerated programs is that they are short-lived and do not provide as much support as the incubator can over a long period of time.


The accelerator requires some of your startup equity to participate. This is somewhere in the range of 5% and 10%, yet this might rely upon your niche as well as specialty of the acceleration program.

So, Should You and Your Startup Rely on an Incubator?

Again, the question of startup incubators or accelerators depends on your circumstances. If all you need is only financial support to grow faster, an accelerated program might be for you.

But, if you lack confidence in your innovation or venture readiness, an incubator program may be the right pick. Mentoring and other offers of support can close this gap from the initial idea to the product being marketed. Whether your innovation is a physical product or something as simple as a dormant marketing app, it’s easier than ever to really break down – with startup incubators such as Startupguru available to help you maximize your market share!