Tech in Motion invited us to write a guest post about startup incubators. This is an excerpt of that piece. To read the article in full click here
Startup incubators provide startups a faster, better chance of success through mentorship driven programs. In essence, that’s the allure of an incubator.
Incubators typically provide startups the key ingredients needs for success: office space, the best network of mentors and investors, networking events, collaboration with other like-minded entrepreneurs and a program that drives a startup to move fast. Incubators are often seen as the best place to launch a startup. It’s rich with benefits and allows the startup to focus on company and product development without having to worry about the hassle of things like leasing an office or getting an Internet connection set up. For most startups, creating and innovating sounds a lot more appealing than waiting four hours for the cable guy that may or may not show up.
In addition to giving companies the freedom to focus on work, incubators give startups access to business networks and investor contacts they otherwise might not even know how to find. In exchange for all these great benefits, the startup typically gives up some form of equity to the incubator or pays a fee. Y-Combinator takes 7%, the 500 startups accelerator takes 5%, and there are some programs that take even more, as much as 50%!
For some entrepreneurs, this can be more than worth the benefit received in return. Access to a network as strong as those offered from world-renowned programs like Y-Combinator or 500 startups can be tough to beat. However, there are several options out there that don’t require any equity or fees. One such option is a local incubator in San Diego and Irvine that has proven an excellent accelerator or incubator program does not need to come with the stipulation of giving up anything in return.
Where EvoNexus differs from traditional incubators is that they offer startup companies all these benefits without requiring any equity or IP-related obligations from the company. In other words, entrepreneurs reap all the benefits of the incubator without having to sacrifice any shares or percentage of their company.