What is Incubator?

An incubator is a program designed to support early-stage startups by providing resources like office space, mentorship, legal guidance, and basic funding to help them grow their business idea.

Unlike accelerators, incubators typically focus on longer-term development and are often run by universities, non-profits, or government programs aiming to foster innovation and entrepreneurship.

Startups in incubators usually don’t need to have a complete product or business model yet - the incubator helps them refine their ideas and build the foundation for future growth.

Example

"She joined a university incubator that gave her free workspace, legal support, and weekly mentoring sessions to help develop her product idea."

How is Incubator used in business?

In business, incubators play a crucial role in nurturing early-stage ideas into viable startups. They offer access to a collaborative environment, experienced advisors, and essential startup infrastructure.

Unlike accelerators, which are focused on speed and investment readiness, incubators often work with founders over a longer timeline to explore the market, validate assumptions, and prepare for future funding rounds.

Some incubators offer capital in exchange for equity, while others are grant-based or funded by public institutions.

Pro Tip

If you’re still testing your idea or lack resources to build an MVP, applying to a reputable incubator can give you structure, credibility, and startup basics without the pressure of rapid growth.