Startup incubators have grown in double digits in the last couple of years. Following the success of Ycombinator and TechStars, in recent years we have seen literally hundreds of regional incubators set up in the rest of the US and Europe, across campuses and within vertical industries, such as mobile or finance. Each incubator promises to provide startups with mentorship, support and a smoother ride to funding.

A new report published by NESTA (the National Endowment for Science, Technology and the Arts – an independent body with a mission to make the UK more innovative), predicts that we can expect to see many more new accelerator programmes created in the coming years, and therefore it’s important to understand their processes to better support the growth of innovative startups.

The opportunity

Bootstrapped startups need to look at the plethora of incubators as an opportunity to become better entrepreneurs by learning from your peers and mentors, and by creating powerful networks across geographies.

Criticisms of the model

Despite the generally positive feedback from investors and entrepreneurs alike, incubators also have their detractors: they only build small companies (so far), they divert talent from other high-growth startups and good companies sometime fail despite the incubator program.

NESTA Report - European Incubators

NESTA Report - Founders guide to European accelerator programmes

NESTA Report Notable US seed accelerator programmes by location showing total number of startups funded to 2010 VC Cafe

Notable US seed accelerator programmes by location showing total number of startups funded to 2010. Note: Bar size indicates number of startups funded to 2010.

Download the Startup Factories report here.

 

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Eze Vidra

Head of Google for Entrepreneurs Europe and Campus London at Google
Eze is the Head of Google for Entrepreneurs Europe and Campus London. In 2005, he started VC Cafe to shine a spotlight on startups and Venture Capital in Israel, and in 2012, Eze founded Techbikers, a non-for-profit that supports education through cycling challenges for techies.
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  • http://twitter.com/DimitrisTI Dimitris

    Hello,

    A correction for your readers regarding the Openfund, we have now funded 8 companies and our funding comes not just from a bank but also from a number of individual/angel investors.

  • http://pulse.yahoo.com/_QCJC4JTNEBDIBFU473UIDDCKV4 eat lamb

    Cool. Keep it up thx
    Paul Azous
    CEO, PPM.net

  • Pingback: The Startup Factories | Paul Miller

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