Different folks have different definitions, but generally an incubator has education for entrepreneurs and it can be in a cohort style or self paced. An accelerator generally is competitive to get into and comes with an investment for which the accelerator takes some equity in exchange. Founders should be careful with these types of investments so they know what percentage of the company they are giving in exchange for the investment. It may be a high percentage for a small investment.
Very useful information. I have a question. What is the major difference between startup accelerator and a startup incubator? Thanks in advance
Different folks have different definitions, but generally an incubator has education for entrepreneurs and it can be in a cohort style or self paced. An accelerator generally is competitive to get into and comes with an investment for which the accelerator takes some equity in exchange. Founders should be careful with these types of investments so they know what percentage of the company they are giving in exchange for the investment. It may be a high percentage for a small investment.