Coworking, Incubators, & Accelerators - What's the Difference?

The Way We Work is Evolving

Slide notes: http://seobrien.com
Paul O'Brien; Growth Hacker
@seobrien | 512-944-0007 | paul@seobrien.com


* Via Remy Cagnol; Brief History of the
Workspace

U.S. Demand is Hottest in Austin


* Via Anna Cashman; Deskmag, Nov
2012

27


71 percent reported a boost in
creativity since joining a shared work
space and 62 percent reported that
their standard of work had
improved. Also 64 percent were
better able to complete tasks on
time and 90 percent reported an
increase in self-confidence because
they now worked in a supportive
community.

* Deskmag's 3rd annual global
coworking survey; Nov. 2012

Coworking Space vs. Office Space

Indexed demand for office space

Indexed demand for coworking


* Google Trends

Workshop Hyde Park
Capital Factory

Open Incubate Incubation Station
Emergent Technologies

Posh
STAR Park

Link Coworking

Conjunctured

Space12

DreamIt Ventures

Perch Coworking

Longhorn Startup Camp

ATI

GoLab Opportunity Space
Soma Vida

Chicon Collective

Brainstorm Coworking


IC2

Techstars
Make+Shift

HubAustin

Center61

Coworking is the startup
garage of the future


Coworking is a style of work that involves a
shared working environment, often an
office, and independent activity. Individuals
are usually not employed by the same
organization.
Coworking enables a group of people who
share values, and who are interested in
the synergy that can happen from working
with like-minded, talented people, in the
same space.


* Deskmag's 3rd annual global
coworking survey; Nov. 2012

What makes an Incubator different?
Accelerate the successful development of startup and
fledgling companies by providing entrepreneurs with an
array of targeted resources and services.
Principal mentor provided
Services developed and managed by
Resources networked, vetted, and perhaps funded
Space available, generally at low/no cost
Working or seed capital occasionally available

What makes an Incubator different?
1. Cost: Incubators usually free / Coworking space is not
2. Commitment: Incubators align with a schedule
3. Guidance: Incubators provide mentors and services
4. Equity: 5-15% generally goes to an Incubator
5. Networking: Formal vs. informal
6. Staff: Coworking is casual but individuals therein prof.
7. Philosophy: Incubators & industry / Coworking & culture

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'

Paul Bricault, cofounder of Amplify

What makes an Accelerator different?
Accelerators have a stake in your success and focus
your attention, and their resources, on the success of a
specific objective
Principal mentors provided
Program developed and executed by
Resources networked, vetted, and funded
Space available, generally at low/no cost
Capital invested

What makes an Accelerator different?
1. Cost: Accelerators invest
2. Commitment: Accelerators demand focus
3. Guidance: Structured program that delivers results
4. Equity: Generally less than that of an Incubator
5. Networking: Formal, programmed
6. Staff: Actively involved
7. Philosophy: Success from our respective investment

“If you don’t live in the Silicon Valley, you might not know why so
many successful firms like Facebook, Google, Twitter, and Apple
start or relocate here. The compelling reason is because of the
energy and the competition that exists when so many smart and
innovative people work and interact in a relatively small geographic
space... Obviously having so many great firms so close together also
creates intense wars for talent but that one detrimental factor is more
than overcome by the positive value of the competition felt with
employees from other firms.
The same can be said for the increased creativity that firms find by
locating in major arts and entertainment areas like New York City
and Los Angeles. The same increase in innovation and ideagenerating can occur using “corporate coworking” when your
employees are co-located with strangers from startups and other
corporations.”

- Dr John Sullivan
Prof. Talent Management at San Francisco State


The big question is: What do you need?

Entrepreneurs require space, capital, talent, mentorship, & influence

Two questions that matter
Do we have enough of a product or
service developed to start talking?
How distractible are we?

Evolve the way you work
Incubators

Substantial equity-based rent but offer complementary/discounted services
Work around other entrepreneurs, but not necessarily co-work
Usually an industry focus (biotech or CPG, for instance)
Capital, mentorship, and influence will vary greatly

Coworking spaces
Cash-based rent; substantially cheaper than office space
Work alongside other people and organizations
Usually more peer-to-peer mentorship and greater access to talent
Good co-working spaces tend to attract investors and mentors

Accelerators
Seed-like investment for an appropriate equity stake
Program-based and time-specific
A system designed to deliver necessary elements and results
Usually far more organization, but once graduated, that scales back

Coworking, Incubators, & Accelerators - What's the Difference?

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