Both incubators and accelerators give money to teams of entrepreneurs to make their business plans a reality. So what’s the difference? Well, it seems it comes down to this: does the entrepreneur have an idea yet?
Incubators are like a think tank. Regardless of specific idea, an incubator possess at lot of great minds that come up with cool ideas. And then use members of the incubator to launch the idea into a company.
Accelerators help entrepreneurs who have had their “ah-ha!” moment sky rocket their idea into reality. Entrepreneurs will usually join an accelerator’s program that lasts a few months and by “graduation” they pitch their ideas to venture capitalists (VCs) to keep the company alive with a round of funding.
Need more of an explanation? I liked this one.
Good luck with the ideas and implementation!
(Originally published on Amanda Stanhaus’s financial literacy blog: XO, Bettie.)