The concepts of incubator and accelerator are sometimes misused synonymously. Next, we explain what an incubator is, how it differs from an accelerator and how the ecosystem of Spanish incubators is found.

What is a startup incubator?

An incubator is an environment where the conditions are met to make life possible and sustainable, providing an enabling environment. Transferring the concept to startups or emerging companies, startup incubators they are companies that provide an environment in which the development of new ideas and the formation of teams of entrepreneurs who can bring them to reality are promoted and facilitated.

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Mobile World Capital defines an incubator as a company or organization that seeks future startups in the “seed” phase or in very early stages. They offer programs specially designed to help entrepreneurs who are in very early stages to innovate and grow. They usually offer workspaces, personalized tutoring, professional services such as accounting or legal help, training and access to investors for startups or entrepreneurs. With these resources, they allow companies and ideas to take shape while operating at a lower cost during the early stages of business incubation.

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What types of startup incubators are there?

Startup incubators can be private, university and government entities. Some incubators are industry agnostic and, on the other hand, we find some that specialize in a specific sector, such as tourism or finance.

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Incubators can be classified into 3 categories according to their level of specialization:

• ‍Traditionals: Aimed at service businesses or businesses
• Intermediate technology: They support technology companies.
• ‍High-tech: They focus on technology companies, but give preference to information technology or other innovative technologies.

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What are the phases of an incubation process?

In an incubation process, there are usually 4 phases:

• ‍Selection A group of entrepreneurs or a startup presents a business idea to an incubator. This idea or innovation enters a selection process, where the incubator's advisors and specialists analyze the team and the potential of the idea. The incubator itself decides which projects to select and start working.
• ‍Pre-incubation In this phase, the business idea is analyzed and we begin by defining what the business model will be. The business is strategically planned, making key decisions and researching the market in order to obtain a strategic vision for the subsequent implementation of actions. The incubator provides startups with guidance, advisory and mentoring services. It lasts approximately 6 months.
• ‍Incubation This is the stage in which the project is launched and the business plan established in the previous phase is executed. This is the longest phase, which usually lasts between one and two years or so. When the project is launched, the incubator oversees and provides support in areas that complement the knowledge and needs of entrepreneurs, such as human resources, marketing, production or logistics. Entrepreneurs also receive training to be trained in the administration and management of their company.
• ‍Post-incubation or follow-up The startup is already formed and up and running, although the incubator continues to provide support and guidance or guidance services. The company is monitored to analyze growth expectations. This phase lasts between 6 months and a year.

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What's the difference between a startup incubator and an accelerator?

A startup accelerator is an organization that offers mentorship, capital, and connections with investors and business partners. It is designed for selected startups with a Minimum Viable Product (MVP) and with promising founders, to be able to scale quickly. Thomas van Huijgevoort (2012), a professor at the University of Utrecht, states in his thesis that accelerators are a different and simpler phenomenon than incubators. They have two different traits: a shorter period of development and other selection and admission criteria. The same author mentions eight characteristics of an accelerator combining the definitions of Christianson (2009) and Miller & Bound (2011):

• ‍Funding
• Small teams, not individual founders
• Defined period, normally 3 to 6 months
• Intensive Coaching/Education Program
• Network of contacts
• An open application process - which is highly competitive
• Optional: a Demo Day at graduation
• Optional: free or subsidized office space

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From Intelectium's point of view, “speaking in silver”, the main difference is that incubators are looking for projects in the pre-seed phase while accelerators are dedicated to promoting companies that are in the early stage phase.