Sharing is caring!
Today, there are so many startups emerging in the market. All of them require funds while beginning their journey, and for that, they approach several funding sources. One such seed funding for startups in India. Incubators are known to support companies with finance and other resources during their initial stages. They can be described as startup guides that can help you from money to other requirements that can include physical office space. In this article, I will tell you five things to ponder on before approaching startup incubator.
Also Read: How to Fix QuickBooks Error 1603?
What You Should Know Before Approaching Startup Incubator
1. A Community That Is Supportive And Strong
The strength of the community matters a lot in the case of an incubator. Starting a company is a pretty daunting task, and everything takes its own time to get completed. For that, it is necessary to find a community that can help you to get things done. It is understood that some assistance is required all the time. So, consider approaching a startup incubator with a firm community. Their organization should be able to assist you in tough situations.
2. Understand Their Expertise And Interest
Today, there are many videos about what incubators are actually looking for in startups. So, to get to know about them, you should go through their videos. Some incubators want to know how strong you are with economics, while others desire a strong understanding of business to business relationships.
3. Is There Any Chance Of Mentorship
Mentorship is a key thing to look for when trying to get incubation support. Getting advice from people who have laid their foundation in the world of business could help you in getting successful. An ardent incubator can act as a friend by giving access to the network you will require for the growth of your business. You can easily create innovative ideas and business models with the assistance of such incubation support. Therefore, look for some experienced incubators who have supported several businesses for a very long time.
4. How Good They Are With Networking
No company becomes successful if it lacks a strong network. Growth is only possible if you have a powerful business network. Make sure that your incubator brings numerous opportunities for your company. You can gain contacts from different professionals like a chartered accountant, lawyer, bankers, investors, and even potential customers. All of them will help grow your business in the future. After you have obtained a good startup incubation support, it’s time to get more resources for your startup.
5. Powerful Management
A formidable leader is required for the smooth running of the business. Without effective management, all the business operations will likely fail. The manager should be able to build confidence amongst all the employees, investors and customers that are a part of the business. Overall, your incubator should also possess some impressive management skills.
Also Read: 5 Steps to Effective Event Management
Types Of Startup Incubators
Now, it is time to look for four types of startup incubators.
1. Government-Backed Startup Incubators
These are the organizations that could be supported either by a local government or a central government. The government could support some incubators in order to provide jobs for the unemployed. As there is a sharp increase in unemployment, governments could support startups through their incubators and create jobs indirectly.
2. University-Backed Startup Incubators
These are the startup incubators that are accessible to all the domains, industries, entrepreneurs and sectors. Such startup incubators offer an ecosystem for academic research and development activities. Some sectors that these organizations support are healthcare, IT, food processing, cleantech, and education.
3. Private Incubators
Private incubators are the type of incubators that have their specific owner. Most of the time, owners could back other businesses with their incubation support if they find good opportunities in other companies. Some of the startups that are nurtured by these incubators are related to retail, mobile, and technologies such as artificial intelligence, IoT, etc.
4. Corporate Incubators
Corporate incubators are the ones supported by a large organization to fund other small organizations or companies. In most cases, corporate incubators support technological startups by providing mentorship and education in a particular field of information technology. Since such incubators are mostly connected to the corporate world, they can provide access to the huge global business network.
Finally, we have seen that numerous incubators provide funding for new startup companies. In this article, we have seen five important things to examine before approaching startup incubator. Like the other funding sources for a startup, incubators are also receiving more and more calls for funding. After getting a great incubator for your startup, you can choose the type of incubator that suits your business. This is important because some incubators work for a specific sector, while others could support all the sectors. Taking the right decision will always bring success in your life.