Business Incubators - Startup Accelerators
Business incubators are companies that assist startup companies and entrepreneurs start and develop their business by offering necessary services that may include, management consulting; legal, accounting, and insurance administration services; computer services; office space; shared administrative and human resources services; sources of investment capital; marketing assistance; industry education; advisory board referrals; and more. Business incubators may have physical offices or may be virtual. Some, but not all, business incubators take equity in the form of stock or a partnership interest as their compensation.
Startup accelerators, sometimes referred to as seed accelerators, are similar to business incubators but are not identical. Startup accelerators provide benefits at an early stage, generally pre-revenue, for a limited period of time such as 3 to 4 months. Startup accelerators generally provide limited capital, shared working space, network contacts, and mentoring.
Coworking spaces or offices refer to workspaces that are shared in order to spread the cost of acquiring office space among many users. Coworking spaces permit the establishment of multiple locations at a reasonable cost. Coworking spaces provide users with maximum flexibility and don't require a long-term contract or an investment in office furniture and/or tenant improvements. The one significant disadvantage is less privacy.