A Startup Incubator’s sole purpose is to provide a place that helps entrepreneurs grow their new (startup) business. Startup incubators usually focus on businesses that either are not yet generating revenue, or have only just started generating revenue.
You might have come across the term business accelerator before. By comparison, an accelerator helps established businesses that have just passed the initial startup phase. Both incubators and accelerators offer similar services such as office space, mentoring, collaboration and investment – but the risk profile is different in an incubator to an accelerator. Incubators take on a lot more risk than accelerators do, because incubators are investing resources and time into unproven ideas, while incubators are backing companies that have proven they already have a market.
Because of the risk profile, most incubators have large intakes, sometimes hundreds of businesses – fully expecting many in the intake to fail. ImpactBase does the opposite – we select only a handful of entrepreneurs to join each intake so we can dedicate the time, energy and expertise needed to give each entrepreneur what they need to succeed and secure seed investment.
Along with investment, the biggest value an incubator should give to an entrepreneur and their business is experience, guidance and coaching from people that have successfully launched and built their own startups.
Most incubators and accelerators are focused on tech startups, hoping to find the next unicorn (a startup valued at more than $1 billion), ImpactBase believes almost every industry can be disrupted either through the use of tech or just better business. As a result, we encourage and accept onto the Pre-Seed Program, entrepreneurs who want to build businesses in any industry – not just tech.