Four of the Most Common Kinds of Startup Incubators Today

Throughout the years, people from the business world have developed a wide array of innovative programs that provide startups the opportunity to develop scalable and long-lasting impactful business models, while also growing their respective businesses.

One such example of these business innovations is startup incubators, which are made to assist startups by giving them the necessary resources and time to construct and design a business model that is both sustainable and efficient. Seeking to mold a startup from a mere idea into a successful business, is a business model that has been on a steady rise throughout the more recent years, primarily driven by a rapidly changing work and business environment.

As a matter of fact, this business model has grown so much, that it started from different sectors specializing in different aspects of the industry. Here are 4 of the most common:

The physical incubator model initially took off in the late 1990s, as a way to support startups who needed advice and capital, to get their ideas running and on the ground. However, the start of the new millennium prompted the dot-com bubble to burst, pushing high-tech incubators to change their business models, with many of them resorting to a virtual one.

Fast forward a few years, and it’s now one of the most well-known types of incubators, as it essentially lets a company get advice and help from an incubator, without the actual incubator itself having to provide a physical workspace or site for operations.

More commonly known as business incubators, these are among the most common types of incubators available today. Often sponsored by municipal entities, public institutions, private companies and the like, their goal is to essentially help young businesses get their foot in the door, by providing the financial and technical resources needed to do so.

Defined as a catalyst tool for both regional and national economic development, by the National Business Incubation Association, business incubators are focused on the public good. They also usually offer administrative help, consulting and referral, on top of the initial capital they help provide.

Also known as startup accelerators, this business model usually comes with a fixed-term program. This generally includes mentorship, educational components, connections, and of course, seed investments.

Similar to public incubators, seed accelerators also aim to provide business growth and deliver operational efficiency, although the way it achieves this is slightly different. Unlike business incubators which generally assist startups for a much longer time period, seed accelerators usually last anywhere between three to four months.

Last but not least, we have academic incubators. According to Gensler, these have created entrepreneurial environments in educational institutions that help emerging thinkers pursue pathways that can lead to success.

Establishing spaces on campuses where ideas can be exchanged, academic incubators are essentially built to study and assess how to prepare students best for their future careers.

Today’s generation thirsts for a cause; for social movements, and academic incubators are just one of the many ways that educational institutions provide help to develop the entrepreneurial skills needed to start it in the future. Academic incubators are also instrumental in exposing students to learning environments that are not in a traditional classroom setting.

What is interesting, is when you mix elements of all of these and throw public equities into the mix. What do you get? The Public Accelerator-Incubator; a hybrid between an accelerator, incubator and a public company intentionally developed as a microcap venture.

One such example of this business model is Digital Asset Monetary Network, Inc., (DigitalAMN) (OTCMKTS:DATI), a specialized tech accelerator, which is one of the first companies to make use of the Public Accelerator-Incubator (PAI) model. As a PAI, DigitalAMN leverages both the startup and microcap communities, putting startup companies through what it refers to as the “path of accuracy” program while accelerating investments to startups through its Angels + program. Here, young budding businesses are put to the test.

Through these is programs, young businesses are helped to first identify if they are in fact a disruptive or sustainable innovation. Then, startups are given the opportunity to gain its initial traction by marketing its products and services while raising capital on an equity crowdfunding platform. But it doesn’t stop there.
These companies eventually have the opportunity to become portfolio-companies of DATI, whereby DigitalAMN makes a commitment to fund these young businesses while introducing the startup to the microcap markets; providing startups and development stage companies with an even larger investor base. Then it’s onto a Reg. D or Reg. A+, and where viable, an STO (Security Token Offering). There is truly not single accelerator, incubator or a public company like it.

Although the firm is hovering on-the-line between being a seed accelerator and a public incubator due to the model it follows, DigitalAMN is still a Company focused on supporting young businesses at its core, by providing investment opportunities to the greater population of everyday people, in the next big tech company.
In fact, to further embody this belief, the Company recently changed its name from Digital Arts Media Network, Inc. to Digital Asset Monetary Network, Inc., as per Yahoo! Finance.

To wrap it up, these are merely some examples of incubators that are easily accessible today. There are countless others out there, continuously adapting to the needs of young businesses in need of all the help they can get to not just survive, but thrive.