Why Incubators Are Perfect For Tech Start-Up / New Tech
Incubator? Why call it something with such infantile connotations? Well, let us consider that some of the richest startup founders out there are not yet 30 years old, and that people like Paypal co-founder Peter Thiel are willing to bet millions on inventors who are not yet 20 years old. From these facts it becomes apparent that youth seems to be a great commodity in the world of tech startups. Also, it is perhaps beneficial to “nurture” startups in a way that is controlled and ensures that they will best reach their potential. Let’s take a look at the benefits of incubators for startups/new tech:
Mentorship and Education
An incubator is often attached to a University and provides all the support and guidance that young potential founders may need. As the participants in the incubator are typically higher on technical skills and imagination than on business savvy and the practical experience needed to function in a business, the incubator can provide a more focused approach in those areas that are weaker while still giving them the time to concentrate on realizing their innovations. Incubators will offer everything from guidance on creating marketing plans to the best methods for finding angel investors and venture capital. The assistance can be quite comprehensive.
“NBIA’s 2001 survey of North American incubator managers found that today’s incubation programs provide a rich mix of services to help start-up businesses succeed, including comprehensive business training programs, assistance with manufacturing processes and product design and development and help with financial management and human resources development.”
Incubators are often overseen by those who were once successful startup founders themselves. Not only do people like Paul Graham of Y Combinator have the experience of having been there before, but they also have many sample points of what kind of ideas have worked for startups and which haven’t simply by virtue of running an incubator.
Venture capital firms, angel investors, and maybe even maxing out a credit card or begging a rich uncle will always have their place with startups, but incubators offer a unique kind of stewardship and also seem to be more realistic about the techie culture that breeds innovation.