Why are incubators important? 1. Improve access to finance Provide funding internally Connect entrepreneurs with investor 2. Enhance human capital Trainings programmes Formal and informal mentoring by experts Sharing between incubated founders Academic incubators

Why are incubators important? 3. Improve support system Provide infrastructure (e.g. working space) Boost networking with external stakeholders and professionals 4. Improve culture Legitimize entrepreneurial activity Promote successful stories Decrease risk of starting up a business 5. Improve access to markets Provide easier access to the local and global value chain (suppliers and customers)

Incubator definitions “Business incubation catalyses the process of starting and growing companies, providing entrepreneurs with the expertise, networks and tools they need to make their ventures successful.” “Incubation programs diversify economies, commercialize technologies, create jobs and build wealth.” (National Business Incubators Association, US)

Incubator concept

Incubator types

Accelerator definitions “A business accelerator is an intensive (e.g. 3-6 months) business program which includes mentorship, educational components, networking and aims at growing business rapidly, ending in demo-day.” “Usually an entrepreneur moves into a shared office space with other new founders for a period of time to work under the tutelage of advisors and experts to grow their business rapidly.” “In exchange for the expert mentoring, exposure to investors/future capital and cash investment that entrepreneurs get from the accelerator, the entrepreneur gives a portion of his or her company’s equity to the partners of the program.”

Incubators vs. Accelerators Accelerator usually have a greater focus on companies closer to the market – Accelerators will generally offer all of the services offered by a business incubator – Acceleration program has limited (relatively short) duration – The key difference is the level of hands-on involvement by accelerator management - should increase the chances of success

Incubators vs. Accelerators Accelerators are more likely to be financed by private investors (venture capitalist and business angels), who are looking for an opportunity to finance growth potential through defined action plans (i.e. create a pipeline for businesses) – Good for both entrepreneurs and investors

Incubator/accelerator services (1 από 5) Infrastructure – Private or shared office space – Office materials and ICT services – Shared laboratory with specialized equipment – Informal areas

Incubator/accelerator services (2 από 5) Financial services / Access to finance – Direct funding (pre-seed or seed) – Direct exposure to professional investors (business angels and venture capital firms) – demo day – Collaboration with banks for specialized micro- credits – Accounting and budgeting services

Incubator/accelerator services (3 από 5) Networking – Access to knowledge resources (University, TTO, Techno / Science park) – Access to suppliers and clients – Access to potential employees/human capital – Access to strategic partners – Interaction with the other incubated firms/entrepreneurs, investors, etc. – Supporting entrepreneurs: business incubators and accelerators

Incubator/accelerator services (4 από 5) Training Hard skills: – Technical: Manufacturing practices, product design and development – Business and management skills: business plan writing, marketing and e-commerce, financial and investment literacy, intellectual property rights protection and management Soft skills: – Team work – Self-confidence – Risk-taking attitude – Focus, – Presenting and pitching skills

Incubator/accelerator services (5 από 5) Mentoring / CoachingBusiness – management and development – Financial management – Product development – Commercialization and marketing – Trade facilitation and internationalisation – Intellectual property rights management and other legal issues – Business etiquette

How to choose an incubator/accelerator ? Carefully analyse your own needs Carefully analyse what the incubator/accelerator has to offer Make sure you match them Supporting entrepreneurs: business incubators and accelerators

How to choose an incubator/accelerator ? Carefully analyse your own needs Do you just need cheap/free workspace or more? Do you need business/management mentoring? Do you need help in refining your business model? Do you need help in developing your product? Do you need help in commercializing your product? Do you need help in access to suppliers and customers? Do you need help in reaching out to strategic partners? Are you willing to relocate, if necessary? Are you willing to listen and have others guide your through your own company? How much do are you willing to give away in equity?

How to choose an incubator/accelerator ? Carefully analyse what the incubator/accelerator has to offer Is there a co-working space available? Other infrastructure/logistics support? Is there a specialized laboratory for product development? Is there a (pre)seed funding available? How much is it? What is the cohort/class size? How long is the process? What are the expectations for graduation? What kind of training is available? Is it technical or business focused? Who are the trainers? Do they have the needed expertise to provide the trainings? How many mentors are there per startup? Who are the mentors? Are they successful entrepreneurs?

How to choose an incubator/accelerator ? Carefully analyse what the incubator/accelerator has to offer Who are the investor? Are they professionals? Do they have a successful investment record? Is there a formal demo day to pitch the business? Are there other types of exposure to investors? How have the previous incubator's graduates done? How many got follow-up funding? How much capital have the incubated firms raised after the graduation? How is their network? Can they systematically provide relationship with knowledge/suppliers/customers/strategic partners/human capital/investors/etc.? Do they have long-term relationship with their startups (after graduation)?

How to choose an incubator/accelerator ? Make sure you match them Be honest and critical in assessing what you need You should not prioritize financial capital as your primary reason for applying, as a good incubator can typically offer much more than money. Do your research about the possible incubators/accelerators Talk to as many people as possible (mentors, investors, incubator/accelerator managers, current and previous incubated startups, etc.) Understand the resources and services offered & the cost of being involved.

How to choose an incubator/accelerator ? Make sure you match them Do they provide training that you need? Do the mentors have experiences that are beneficial for your startup? Do the investors invest in startups similar to yours? Consider that the location is in line with your business. Can your business flourish with the resources in the location? Evaluate the work-load of the programme and assess if you can follow it. Understand if the incubator/accelerator brand is going to help you in the future. How much (equity) do you need to give away? What do you get in return?

How to choose an incubator/accelerator ? General examples: If you need knowledge resources -> university (schools have human capital, a knowledge base, access to grants and resources and other enabling infrastructure to help you succeed) If you need quick access to market or capital -> private accelerator that has strong relationship with the industry and investors If you need more time to further develop your idea -> governmental or NGO-supported that provides long incubation time with low commitment requirements If your idea solves a socially or environmentally relevant issue -> governmental or NGO-supported that has a strong focus on the related issues