What is a start up incubator and how does it work? What is its role in the development of new companies?
The start up incubator has a very important role in the development process of new companies. An organization of this type, in fact, accelerates the development of a territory, increases the chances of survival of start-ups and acts as a bridge between these innovative companies and other companies.
What does start up incubator mean and what is it for
Law Decree 179 of 2012 defines a " certified incubator " a capital company that offers services to support the birth and development of innovative start-ups .
The European Commission has helped to clarify the definition of an " innovative start-up incubator ", as a place where entrepreneurs find the structures, services and skills necessary to meet their needs and develop their business ideas by transforming these into sustainable realities.
In essence, therefore, it is a company that supports start-ups during their early stages of life , providing resources and fundamental services for the development of new business projects. A start up can be part of an incubator for a period which generally does not exceed 3 years.
Among the services and resources made available to start-ups there are:
Sharing of physical and coworking spaces
High-speed access to the internet
Networking activities
Marketing research and services
Strategic consultancy
Legal services
Accounting and financial management services
Access to bank loans, guarantee funds for smes, tenders and incentives
Within the macrocategory "start-up incubator", a distinction must be made between public and private incubators : while the former generally aim to support the innovation and competitiveness strategy of a country (or a particular geographical area) , the latter are aimed at the equity investment in the start-up capital, which is remunerated by the sale of company shares.
In most cases, worldwide, incubators are non-profit organizations , but some of them integrate public and private contributions while others are totally financed by private entities (generally these are large hi-tech companies).
What are the advantages of a start up incubator
There are several advantages for those who decide to resort to the help of a start-up incubator. Having offices and workstations equipped and connected to the network has clear benefits at an operational level and also allows some management costs to be reduced. The opportunity to be included in an already active business network, then, gives the opportunity to expand your network of knowledge and develop new ideas thanks to the comparison with other startuppers.