Incubator VS Accelerator
Difference between the concepts of “pre-accelerator” and “accelerator”
In the startup ecosystem, the terms "pre-accelerator" and "accelerator" are often used, but it's not always clear how they differ. Both types of programs are designed to help startups grow and succeed, but they do so in different ways and are aimed at different types of companies.
We will explore the main differences between these two concepts, according to:
Program impact
Startup maturity level
Program duration
Focus on financing
Startup sector
It is worth noting that the concept of “acceleration” is often confused with that of “incubation.”
The term " incubator " refers to a physical space dedicated to the incubation of startups. Activities include training and other services to prepare startups for conception and growth, always with a physical component (e.g., meetups, breakfasts, support squads, etc.).
While an " accelerator " carries out startup acceleration activities, these don't necessarily involve a physical space. The activities consist of training and other services to prepare startups for growth, usually with projects that have a certain traction (e.g., scaleup school).
Additionally, since 2009, in Tetuan Valley, we have been committed to " pre-acceleration " activities. These consist of training and other services to create and validate new business ideas. These activities also do not require a physical component (e.g., startup school).
Impact of the program
Pre-accelerators : Their goal is to help you bring your startup to market. Therefore, they focus on providing advice on developing your idea, providing workspace, access to various basic resources, and mentoring. They also connect you with other profiles who could contribute to the development of your project.
Accelerators: Aims to help the startup grow in turnover and obtain customers and sales. Includes workshops, mentoring sessions, networking events and usually culminates in a Demo Day event where startups present their project to potential investors.
2. Startup maturity level
Pre-accelerators : These focus on very early -stage startups, even at the idea stage. Their goal is to help entrepreneurs develop their ideas into viable businesses.
Accelerators: They work with startups that have already passed the idea phase and have a minimum viable product (MVP) and usually. The objective is to accelerate their growth and prepare the startup to scale in a short period of time.
3. Duration of the Program
Pre-accelerators : The time spent in an incubator can vary, but they tend to offer longer programs, lasting from 6 months to 2 years. This extended time allows startups to develop their ideas and build their business model with greater peace of mind and ongoing support.
Accelerators: They offer shorter but, as mentioned above, more intensive programs. Their typical duration is 3 to 6 months, during which time startups are expected to achieve significant growth and prepare for investment rounds.
4. Focus on Financing
Pre-accelerators : They don't always provide funding, as they focus on projects in very early stages and that aren't very developed at first. By participating in their program, they can connect entrepreneurs with potential investors or business angels and publicize existing funding sources.
Accelerators: Some may offer an amount of initial funding in exchange for a percentage stake in the company and facilitate access to a network of investors, potential investment rounds or Venture Capitals that may consider investing in the startup at a later stage.
5. Startup sector
Pre-accelerators : There are pre-accelerators that work with specific sectors, such as cybersecurity, sustainability, edtech, fintech, etc. But unlike accelerators, they only specify the field in which they operate and don't focus on specific challenges in any area. They tend to have a broader scope and welcome projects with very different business ideas.
Accelerators: In this sense, sector accelerators can be more specific by limiting the challenge within the sector, for example accelerators specialized in renewable energy within the area of sustainability. This is because accelerators of this type tend to have more knowledge and connections in a specific area.
As you can see, choosing between a pre-accelerator and an accelerator depends primarily on the stage of your startup and your specific needs. If you're in the development phase of an idea and need time and resources to turn it into a viable business, a pre-accelerator program may be the best option. If you already have an MVP and are ready to scale and seek funding, an accelerator can provide the necessary boost to take your startup to the next level.
Both types of programs offer many resources and support, and understanding their differences will help you make a decision that maximizes the chances of success for your startup.
Do you have an idea or are you already developing a project? At Tetuan Valley, we offer incubation, pre-acceleration, and acceleration programs. Each one offers different approaches but is completely free of charge. If you'd like to learn more, just click on this link .
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