WE ARE A STARTUP INCUBATOR AND ACCELERATOR!
But hang on ... What does this mean?
If you are new to the startup industry, the language might not be easy to understand. This is why it is crucial to clearly define the basic terms—we all want the best for our companies, right?
Incubators
A startup incubator is a collaborative entity designed to assist entrepreneurs in the earliest stages of their startup journey. Exelinc, Startmate, ATP Innovations and Spark Bureau are a few of Australia’s.
When your startup is merely an idea, incubators enable that to flourish. From tech ideas to creative business concepts, incubators usually offer a coworking space for you to connect with other like-minded entrepreneurs and bring your brilliant business idea into reality.
Accelerators
Accelerators focus on scaling a business and on accelerating the process of building a startup—Founder Institute, iLab, and Angel Cube Melb may all be categorised as accelerators.
They aim to do so over a scheduled and specific period of time, usually a 3–6 month short course, and often take an equity stake in the project. Accelerator programs are either a group or one-on-one process, so you can gain collective or personalised insight to catapult your startup to success.
Pre-Accelerators
A pre-accelerator is focused on working with entrepreneurs to advance their idea whereas accelerators assist startups to scale. Applying for a pre-accelerator program or joining an incubator both present amazing opportunities to be perfectly prepared to pitch your idea to mentors, advisors and investors. They can each offer great support to your startup journey throughout different stages.
Then how can you decide which of the two is right for your business?
Knowing your business and your vision for its growth is paramount to evaluating your startup’s method of expansion. Simply consider the following:
What are the resources provided by your chosen incubator or accelerator?
Find out what your chosen mentorship program has to offer, and whether it aligns with your startup’s resources—some provide better resources than others. Always evaluate the quality of service you’ll receive and whether the facilities, location, branding commitments, professional expertise and networking opportunities on offer will meet your expectations.
For instance, while not every mentorship program will have provided services to clients who have gone on to achieve huge successes in their chosen industries, a list of clients who have completed the program will confirm that you are getting legitimate and professional assistance.
Consider what you can commit to, financially and practically.
Long-term results are generally what businesses seek. Studies have shown that startups trained by successful accelerators are faster in raising venture capital and gaining customer traction as opposed to incubators. However, the associated costs—particularly for first-time entrepreneurs and startups—may present a hurdle.
Be sure to always read the fine print on any contract! Weighing up the costs and benefits of your chosen incubator or accelerator can help you determine the right approach for you.
So where does Hatch Quarter fit into this?
Hatch Quarter works with entrepreneurs who have an idea and a demonstrable capacity, passion and drive to turn that idea into a business but need some support, advice or mentorship to go all the way. Our pre-accelerator program has been designed for entrepreneurs seeking a little help analysing their startup idea and understanding the Australian startup market.
Contrastingly, our ecosystem accelerator might be a growth opportunity for an already established startup to really advance beyond their existing business model and technology, placing you in the best position to attract investors and influencers.
So effectively we are both an incubator and an accelerator!
If you are looking to take your idea to the next level, Hatch Quarter can guide you through the early stages of your startup adventure and assist you to set up a scalable business. Contact us at [email protected] to find out more about our pre-accelerator program and consulting services.
Written by Camille Tissot, Community Coordinator at Hatch Quarter.