Startup Incubator vs Accelerator: Crucial Business Differences

Know the differences between incubators and accelerators for startups. Learn how each can support your business, from early-stage development to rapid growth and scaling.

Introduction

In the early days of a startup, it is only natural to think about growth. Without the right guidance early on, it can be hard to figure out what types of resources you might need to finesse your idea.

Some of the startups you might have heard of were first boosted by an accelerator. Household names like Airbnb and Stripe were both companies who used Y Combinator to boost their startup’s growth. Back in India too, quick commerce firm Zepto too, passed through the same programme.

At WeWork Labs, we have developed a comprehensive system where we assist startups in the early stages of their journey to solve their problems: Growth Campus. With Growth Campus, you can help get access to everything from product and accessing the right resources and network. Through our own journey of building Growth Campus, we’ve come to realise that the problems an early stage startup needs to solve are often multifold. Here’s how a startup incubator or accelerator could help solve those issues.

What is an Incubator?

Startup incubators are programmes that provide any necessary support for a startup that is working on a particular project. They essentially work like guides that help startups find a relevant pathway for success early on in their journey.

What is an Accelerator?

A startup accelerator, also known as a seed accelerator, is a business program designed to help early-stage, high-growth companies by providing education, mentorship, and funding.

Difference between incubator and accelerator

Accelerators fast-track the growth of existing startups, while incubators nurture disruptive ideas, aiming to shape them into viable businesses.

Benefits of incubators and accelerators

Access to resources

Particularly in the early stage you can struggle to find the right resources and the struggle to get the fundamental needs of your business right can often stray your focus away from solving those issues. At Growth Campus, we help startups that have partnered with us access an exclusive tech stack. Over 50 international service providers have partnered with us to offer exclusive member benefits worth over $1 million, helping startups accelerate their growth journey!Similarly, a startup incubator or accelerator can help stitch those loose ends together, by helping you find the right office space, equipment, tech stack and everything you need. We do something similar for the startups that are housed under Growth Campus. If you’re looking for a one-stop solution for all your resources, this might be the right fit for you.

Finding the right mentor

Most great businesses aren’t built in a day, so it might be wise to speak with someone who has built one. A startup incubator or accelerator can help connect you with a mentor who really understands your business. By getting the right mentor to guide you through your startup journey, you can avoid the obvious pitfalls, seek out the right people for funding, and get advice on the various moves you make as a startup. This is why mentorship is a key focus for us within the Growth Campus. We help you connect with mentors, like-minded founders and more through our digital community. You can sign up to our Discord here.

Driving your startup’s scale

Scale is essential to make your startup flourish. While an incubator can help you get started with a minimum viable product, or even test out its efficiency, an accelerator can help you drive scale once all the moving parts are in place. Oftentimes, when a startup signs up for an accelerator programme, they can get years worth of learnings condensed into a few months. This can drive startups to achieve their goals within a shorter timeline. So if you’re a startup that needs to drive scale quickly, perhaps an accelerator can help you get there. With Growth Campus, you can kickstart your scale-up journey with access to over 500 locations across the world, on a subsidised costing model.

But if your idea needs time in order to figure out viability, maybe an incubator programme with long-lasting benefits and the opportunity to access capital is right for you. If you are a startup based in India looking for access to capital, WeWork Labs can also help you with that journey.

How to Choose the Right Program for Your Startup

Here’s a quick checklist that you can use to figure out if an incubator or an accelerator programme is right for you:

1. At what stage is my startup right now?
2. What funding do I require at this point?
3. Is my founding team strong, or do I need to build one?
4. Am I willing to move for this opportunity?
5. Who would I like to have as a mentor and learn from?

Good luck with your startup journey. See you in the next WeWork Labs Blog!