More than 85 percent is a survival rate of businesses that got supported by incubators. It means that the support and investments that a startup team gets from an incubator are much more valuable than the ones that a startup could get on its own. If you have a great fintech technology business idea and are ready to apply, this post is exactly for you because, in this article, we’re going to:
- Find out what incubators are
- Reveal what help you can get from an incubator
- Discover the top 3 most reputable incubators in the US to join
Let’s get it started.
What’s an incubator?
An incubator is an organization aimed to assist, so-called “incubate”, young startups usually at the beginning of their paths. Incubators provide startups with all the most necessary aspects they potentially may need to ensure startups’ growth and profitability.
One of the main distinguishes (and benefits) of incubators from accelerators is their link to a physical workspace where startups can get everything they need.
Another difference of incubators from startup accelerators is that accelerators help startups exclusively for a stake in the company. These organizations are more choosy. They calculate risks and help more mature companies that have already proven their feasibility and profitability.
Incubators, on the other hand, are often non-profit organizations that assist a larger number of teams or individuals with innovative ideas.
Despite these significant differences in operation models of these organizations, some companies are a mix of incubators and accelerators and help both mature teams and first-time startups.
What help startups can get from an incubator
Incubators usually offer a wide range of services to not only pull off but teach young entrepreneurs to do business. Among the most widespread services incubators can provide you with are:
- Teaching fundamental in business
- Expanding your network
- Assistance in your marketing campaigns
- Offering numerous investing services (bank loans, angel investors, and venture capitals)
- Provision with workspace, equipment, and necessary workforce
- Comprehensive mentorship
- Legal issues resolution
- Help with regulatory compliance
If you’re eager to get all that and even more, let’s take a look at the most prominent U.S. investors focused on technology startups that you can address to set the wheels in motion.
Top 3 U.S. incubators to join in 2021
As far as one of the main conditions to joining incubators is the physical presence in their headquarters, in our review, we’ll consider incubators from different parts of the U.S., so you could choose the one that can fit your requirements in terms of location.
Techstars
Established in 2006 by David Cohen, David Brown, Brad Feld, and Jared Polis in Boulder, Colorado, today the team has offices in France, UAE, Norway, and India.
The founders of Techstars believe that true innovations can be driven only through collaboration and respect which they encourage in their environment.
The company has helped more than two thousand companies including Digital Ocean, Next Big Sound, Simple Energy, and Rheaply.
Vermont Innovation Box
Vermont Innovation Box is a unique hub established by an experienced entrepreneur Paul Belogour in Vermont. Paul has been working in the Financial and IT spheres for more than ten years, helping companies from all over the world to implement their innovative ideas into reality. The hub that Paul eventually created offers a wide range of services, including all sorts of office facilities (meeting rooms, private offices, coworkings, roundtables, etc.), assistance in getting funds (from both angel investors and venture capital firms), and a bunch of outdoor entertainments for teams and individuals.
VIB lays stress on its physical environment inside and outside its hub and offers comprehensive support to assist and grow technology startups surrounded by like-minders.
Among the alumni of VIB are Vermont Beer Makers, Viking Farms, and Maple Syrup Exchange.
Capital Factory
Capital Factory is an organization based in Austin. The company was founded by Joshua Baer, an inspired professor from University of Texas with a strong passion for startups.
Capital Factory emphasizes and names a strong community as its main value and chooses startups from its region to help its neighborhood. Capital Factory helps companies of all sizes and assists them in finding investments, workers and even first users.
Another significant aspect Capital Factory is proud of is its mentors who are proficient in different domains and can help startups in transportation, digital health, education, technology, and other domains.
The company assisted such startups as Aceable, Chiron Health, SpareFoot, and Aunt Bertha.
The final thought
No matter what company you choose to apply to and get support from, you should remember that it may not be that easy to get into the program. A lot of incubators have their requirements you need to meet. For Instance, a lot of incubators expect you to already have your FinTech product development started.
Despite the fact that the rules to join incubators are much less strict than the rules in accelerators (that accept only mature startups with proven ideas and sustainable traction), all incubators are mainly focused on innovative ideas that can disrupt the chosen industry.
Story by Paul Belogour
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