Incubators provide affordable workspace and services like management training and marketing support to young startups. Their goal is to nurture ideas during the early months or years and provide access to financing. Accelerators help startups define products, identify customers, and secure resources like capital over a limited duration program. Both provide networking and training, but accelerators invest in companies and expect a return, while incubators rent out space. The main difference is incubators support early idea stages while accelerators help startups reach minimum viable product and gain traction.

1. Innovation
Incubator vs. Accelerator
Northeastern University
Catalina Manzano Laina ©

2. Overview
Incubator
● What is it?
Accelerator
● What is it?
Incubator vs. Accelerator
● Similarities
● Differences
Examples of companies

3. INCUBATOR
Definition
“Facility established to nurture
young (startup) firms during their
early months or years. It usually
provides affordable space, shared
offices and services, hand-on
management training, marketing
support and, often, access to
some form of financing.”
Characteristics
● Affordable space
● Shared offices and services
● Management training
● Marketing support
● Access to financing
Source: Mishra, P. (2015, September 09). Business Accelerator Vs Business Incubator. Retrieved September 11, 2018, from
https://blog.galaxyweblinks.com/business-accelerator-vs-business-incubator/
They give birth to ideas

4. ACCELERATOR
Definition
Facility established to “help
ventures define and build their
initial products, identify
promising customer segments
and secure resources, including
capital and employees.”
Characteristics
● Limited duration
● Provide financial aid
● Provide a working space
● Provide a network
● End of the program: big day
Source: Cohen, S. (2014). "What Do Accelerators Do? Insights from Incubators and Angels". Innovations. 8 (3-4): 19. Retrieved September
11, 2018 from https://www.mitpressjournals.org/doi/abs/10.1162/INOV_a_00184
They help ideas grow

5. INCUBATOR VS. ACCELERATOR
Similarities
● They provide: workspace,
network and training
● They give access to
financial aid
● The need of a mentorship
Differences
● The moment when the
service is required
● The business model: the
accelerator invest and the
incubator rend out

6. IDEA
Business planning
Product development
Customer discovery
Prototyping
MINIMUM VIABLE
PRODUCT
Business traction
Seed investment
GROWTH
INCUBATOR ACCELERATOR

7. EXAMPLES OF COMPANIES
Incubators
Association of Young Businessmen (Asociación de Jóvenes
Empresarios). Madrid, Spain.
eFactory (Missouri State University), USA
CSI Kickstart, USA
Accelerators
Barrabés Group. Madrid, Spain.
AngelPad, USA
500 startups, USA

8. References

9. ● Cohen, S. (2014). "What Do Accelerators Do? Insights from Incubators and Angels".
Innovations. 8 (3-4): 19. Retrieved September 11, 2018 from
https://www.mitpressjournals.org/doi/abs/10.1162/INOV_a_00184
● Mishra, P. (2015, September 09). Business Accelerator Vs Business Incubator. Retrieved
September 11, 2018, from
https://blog.galaxyweblinks.com/business-accelerator-vs-business-incubator/