Some of the biggest startups today had one thing in common before they became wildly successful: they all started in an incubator. Yes, even the most brilliant business ideas sometimes need the right environment to grow. If you’re an early-stage founder, an incubator can be the difference between figuring things out alone and having seasoned mentors guiding you toward success.
But what exactly is a startup incubator, and how does it work? If you’ve ever wondered how some startups go from an idea on a napkin to securing funding and scaling fast, an incubator often plays a key role. In this guide, you’ll learn what incubators do, their benefits, and whether joining one is the right move for your startup. Let’s dive in!
What you’ll learn:
What is a startup incubator?
A startup incubator is a program designed to help early-stage businesses grow by providing mentorship, resources, and a supportive environment. It’s designed to nurture startups during their early phases and prepare them for scaling.
Business incubators act as a bridge between an idea and a fully operational business. Unlike going solo, where you have to navigate challenges on your own, an incubator surrounds you with experts and industry connections. These programs often provide training and access to funding opportunities, which create a structured environment for startups to experiment and grow without the immediate pressures of profitability.
Many successful companies that you may know and love, like Airbnb and Dropbox, started in business incubators. Some programs take a small equity share (usually 10% or less) in exchange for their support. Others don’t take any equity at all. We’ll get into those details a bit later.
What are the key benefits of joining a business incubator?
Starting a business is exciting, but it’s also tough. You have an idea, but what about funding, legal work, or finding the right team? Or what about making enough money? A business incubator gives you the tools and connections to turn your startup into something real. Here’s how joining an incubator can give your startup a serious advantage.
- Guidance from experts: Learn from experienced founders and industry experts. They help you avoid figuring everything out through trial and error. With the right advice, you can move faster and make better choices.
- Networking opportunities: Meet investors, potential partners, and other founders. The right network can open doors and speed up your growth. A strong network can also help with hiring and finding customers.
- Valuable resources: Get legal support and business training. You focus on building your startup instead of worrying about the basics. Some incubators even offer office space, software tools, marketing support, and prototype development.
- More credibility: Being part of a known incubator makes your startup stronger. Investors and customers may take you more seriously. Many incubators also connect you with media opportunities, which help you build your brand.
How does a startup incubator work?
A startup incubator is like a launchpad. It takes early-stage startups and gives them the structure and direction they need to grow. Startups join for a set period (usually a few months to a couple of years) where they work on refining their business model and developing their product.
Incubators give you access to business coaching and industry connections. You’ll work with experienced founders and experts who’ve been through the startup journey before. Some programs even have a dedicated mentor. One who helps you avoid common mistakes and figure out the best way to build your product.
Now that you have a feel for what incubators actually offer, let’s break down the different types you might come across — because not all incubators look the same.
What are the different types of startup incubators?
Not all startup incubators are the same; they come in different forms. Each is designed to support startups in specific ways. So, it’s important to know what makes them unique. Let’s break them down.
University-affiliated incubators
These incubators are connected to universities and focus on helping students and alumni turn ideas into real businesses. If you’re a student or recently graduated, this can be a great place to start. You’ll get access to professors and research facilities. Some even provide grants or early funding to help you get off the ground.
Many university incubators also have networking events where you can meet investors and potential co-founders. The best part? They usually don’t take a share of your company. Their main goal is to encourage innovation and help young entrepreneurs succeed.
Corporate-backed incubators
Big companies create these incubators to support startups that align with their industry. If your startup fits within their space (like tech or finance) you could get funding and direct access to their resources. The biggest advantage here is the opportunity to partner with an established company. They might become your first customer or even acquire your startup down the line. But keep in mind that they may want some control over your business decisions, especially if they invest in you.
These incubators are funded by local or national governments to boost entrepreneurship. They provide free or low-cost office space and access to grants or loans. Unlike corporate incubators, they don’t usually take a share of your company.
Government incubators are great if you’re looking for support without giving up equity. Some programs focus on specific industries (like clean energy or healthcare) while others are open to all kinds of startups. The application process can be competitive. But if you get in, you’ll have access to resources that can help you grow without financial pressure.
Independent or private incubators
These incubators are run by private organizations or successful entrepreneurs. They usually take a small share of your company in exchange for funding and mentorship. Many of the most well-known startup incubators fall into this category. They tend to have strong networks of investors and mentors, which can open a lot of doors. However, competition to get into these programs can be tough. You’ll need a solid business idea to be accepted.
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Incubator vs. accelerator: What’s the difference?
Startups often hear about incubators and accelerators. But the two aren’t the same. Both help early-stage businesses grow, and they do it in different ways. Think of an incubator as a place where startups get the time, space, and support to develop their ideas. An accelerator, on the other hand, is all about speed — helping startups scale quickly in a short time. Here’s a simple breakdown.
What do incubators look for in a startup?
Not every startup gets into an incubator. These programs are selective because they want to invest time and resources into ideas that have real potential. If you’re thinking about applying, it helps to know what incubators look for. Here are the key things that can make your startup stand out.
A strong business idea with market potential
Business incubators don’t expect you to have everything figured out. But they do expect you to be solving a real problem. If your idea doesn’t have a clear target market — meaning there aren’t enough people who actually need or want it — it’s going to be tough to convince an incubator to take you in.
The best way to prove your idea has potential is by showing demand. Have people signed up for a waitlist? Have early users given positive feedback? Have you gotten pre-orders? Anything that shows there’s real interest will help your chances.
If you haven’t launched yet, try building a minimum viable product (MVP). It doesn’t have to be perfect. Just something that people can try or click through. An MVP shows you’re serious about solving the problem.
A committed and coachable founding team
Your business is only as strong as the people running it. Incubators don’t just invest in ideas. Sometimes, they invest in founders, too. They want people who are serious about building a small and medium-sized business (SMB). People who are willing to learn and who don’t give up when things get tough.
The best founders prioritize continuous learning for their teams, staying updated with professional development. Training like the Salesforce for Small Business courses on Trailhead make it easy to build essential skills in sales, marketing, and customer management for your teams — all for free. If you show that you’re committed to growing as a leader, incubators will take notice.
A business that can actually scale
Some businesses work well on a small scale but fall apart when they try to grow. Incubators want startups that have room to expand — whether that’s reaching more customers, launching in new markets, or increasing revenue without huge costs. If your business can only survive in one specific area, or it requires too many resources to grow, it may not be a great fit. Incubators want startups that can start small but grow big.
A solid technology stack for growth
The most successful startups aren’t running on Post-It notes and outdated spreadsheets. They have a structured, modern approach that helps them move fast and grow even faster. Business incubators look for startups that have a solid foundation built on the right tech stack. One that’s built on a solid business plan, efficient automation, and the right technology backed by trusted artificial intelligence (AI).
A customer relationship management (CRM) tool is one of the best ways to bring that structure into your startup. Platforms like Starter Suite bring sales, marketing, customer service, and your online store together in one place. If your startup is built on smart tools like that, you’ll be in a much better position to scale. And when it’s time to apply to an incubator, having that structure in place will show that you’re serious about growing in the right way.
Proof of early interest (if possible)
Incubators like to see progress is being made in the business, however, you don’t need to be fully operational. Maybe you have a prototype or you’ve landed a few paying customers. Or perhaps people are pre-ordering and you have potential for growth. Even small wins show that you’re moving in the right direction. If you don’t have any traction yet, be ready to explain why — and what steps you’re taking to change that.
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Incubate your ideas with the right resources
Now you know how incubators work and what they look for in a startup. So whether you’re about to incubate new ideas or just scaling fast, here’s the big takeaway: your ideas will go further with the right tools in place. That means having a sustainable growth plan and the right technology to support you. To help you on your path, we’ve put together a collection of startup-focused resources packed with insights to keep you moving forward.
Here are some must-read posts to help you grow:
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Frequently Asked Questions (FAQs)
You have to identify what kind of support your startup needs. It may be funding, mentorship, industry connections, or the like. Then, you can research incubators that align with your startup’s stage and goals. Consider their track record, network, and whether they take equity.
Costs vary widely. Some incubators are free or government-funded, while others may charge fees or take equity in exchange for resources and support. Always review the terms carefully before joining.
While some incubators prefer teams, many accept solo founders — especially if the idea is strong and the founder shows commitment. However, having a co-founder can sometimes strengthen your application.
You don’t need a finished product. But you should have a clear business idea, some market validation (if possible), and a basic pitch deck. Be ready to explain your problem, solution, target audience, and why you’re the right person to build it.
Many incubators provide both. While not all offer direct funding, they often connect startups with investors or help prepare them for future fundraising rounds.
