Starting a fintech business can be a stressful and demanding endeavor. Finding the right connections, perfecting your product, and attracting investments can be tough, but incubators and accelerators can help you through this process.
The difference between incubators and accelerators
Incubators are perfect for new entrepreneurs wanting to develop their idea from scratch. These tools will help you improve your product, build a successful team, and gain traction. Incubators don’t usually offer capital and they don’t require equity.
Accelerators are designed for companies that are already thriving and their goal is to help these businesses grow quickly. They usually put founders in contact with investors and provide them with capital.
Getting accepted into an accelerator program is extremely difficult and the application process usually involves five steps. On average only 45 to 90 startups are accepted every year for each program. Unlike incubators, accelerators also require equity.
Are incubators and accelerators for you?
Incubators can be a great choice if you have a brilliant fintech idea but lack the sales background and the right network. Accelerators are always useful to grow your company faster and, even though it may take you some time to apply for a program, your business will surely benefit from this if you will get selected.
The Main Accelerator Programs
There are plenty of accelerator programs currently on the market. Some of the most popular are MassChallenge, Techstars and Y Combinator. However, there are also a few that have been designed to boost businesses from underrepresented founders. For instance, Foundervine, a UK program whose goal is to support black entrepreneurs and other minorities. Other alternatives are StartOut Growth, a US accelerator helping businesses with LGBTQIA+ founders, and The Female Innovators Lab, focusing on startups developed by women.
