All You Need To Know About Business Incubators

    business incubators

    Entrepreneurs come across different obstacles while starting their dream business. These obstacles could be lack of investments, experience, office spaces etc.  At this junction enters the company who help entrepreneurs build their businesses. These companies are called Business Incubators.

    What Are Business Incubators?

    The National Business Incubation Association (NBIA) defines the meaning of business incubators as ‘a catalyst tool for either regional or national economic development.’ Business incubators are firms that help developing startup companies to build up by providing services like training for employees, providing workspace, help with presentation skills etc.

    Every firm can be a member of NBIA where they are categorized into factors such as venture capital firms, academic institutions, for-profit property development ventures, non-profit development corporations as well as all their combinations. NBIA has a total of 1900 members from 60 nations. The difference of business incubators from the Small Business Development Centers (SBDC) is that they serve only particular client while SBDCs serve and help any company that needs help. They not only help startups but also every small business. This is due to the legal obligation of SBDC. Due to this, many business incubation programs thus partner with local SBDCs to provide full support to the startups.

    Uses Of Business Incubators

    Incubators are home to various venture capitalists, angel investors as well as other mentors for entrepreneurs. By helping the startups set up office spaces or legal expertise, they allow the startup to focus more on the running of the core business. The ability to tap into the strong network of business partners is one advantage of business incubators. Being part of a group of companies that are already in the spotlight helps the other startups to grow bug and successful. It also strengthens their ability to gain more opportunities to showcase their ideas and products.

    Since the mentors such as venture capitalists or angel investors are entrepreneurs themselves, the startup founders are always given more challenges which again leads to more clearer vision, roadmap, and strategy.  Being a part of an incubator actually jump starts the startup and gives them the ability to fly solo,

    There are many companies which have gained immense help from business incubators. These incubators counsel the startups to reach a particular stage.

    Examples of famous Business Incubators


    CodeLaunch, produced by Frisco, TX,  is a competition conducted annually between people as well as groups on technology startup ideas. This competition has been the source of success for at least 7 startups which won it. This competition targets “embryonic” stage and “very early” stage startups through established startups can also participate but won’t be the primary focus. The main goal of this event is to create a medium through which people and their ideas can connect with investors and also for the investors to find ideas which they wish to support. Key2Close was one of the finalists of the 2015 edition of the competition.


    India’s largest incubator for startups is T-Hub also known as Telangana Hub. On 5 November 2015 the first phase of T-Hub was set in operation by E. S. L. Narasimhan, Governor of Telangana and Ratan Tata, Chairman Emeritus of Tata Sons, and Telangana IT & Panchayat Raj Minister K. T. Rama Rao. Housed in a 70,000 square foot building called CatalysT, it is entirely dedicated to entrepreneurship. It is a partnership between the private sector and the Government of Telangana along with three of India’s leading academic institutes (IIIT-H, ISB & NALSAR).

    Naiot Venture Accelerator

    Based in Yokneam, Isreal, Naiot Venture accelerator engages in early seed startup investments. Hence, it invests and develops value by providing financial resources as well as management and human resources required to nurture seeds concept into sustainable companies. Since its starting in 1997, it has launched over 60 companies. It is difficult to get investment from Naiot as evident from their vigorous screening process. From over 350 project applications, they select 4-6 projects every year. Investments of $500k-$1M per project are leveraged through an agreement with the Israeli Chief Scientist’s Office and the OCS Technology Incubation Programs. One of the most popular companies which graduated from Naiot is MentorWave (Quiksee) which was acquired by Google in September 2010.

    Centre for Digital Innovation in Hull

    The Centre for Digital Innovation in Hull, popularly known as C4DI is a digital incubator based in Kingston upon Hull, England. For providing assistance to startups, this company has created links with Amazon Web Services, PwC, Kingston Communications as well as other firms. The C4DI accelerator was launched in May 2014.

    There are networks of incubators weaved like a web to guide different startups through their beginning phase. These startups grew up to bring revenues of millions of dollars. Business incubation is a way of gaining equal profits, whether a person is an entrepreneur or an investor.

    Go On, Tell Us What You Think!

    Did we miss something?  Come on! Tell us what you think about our article on Business Incubator in the comments section.

    About the author

      Rameez M Sydeek

      A writer and a poet | Book-worm | Die hard Foodie | Travelling in search for lost soul | A magician who can make everything disappear | Words are heavier than Metal

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