Blockchain technology has taken the world by storm, and there is no denying its growing prominence in everyday life. It is used in:
From myriad applications in the financial world through the development of cryptocurrencies to its use as a governance monitor, the uses of blockchain technology are many and varied.
Therefore, it is hardly surprising that thousands of entrepreneurs find new uses for this technology every day. Actualizing these ideas, however, requires a lot of capital and expert guidance. The two common ways that entrepreneurs get funding and direction are incubator and accelerator programs.
If you are looking to actualize your own idea, read on to determine the differences between incubators and accelerators. This article should help you make the best choice for your budding business.
In startup terminology, incubators are spaces where businesses leap from being mere ideas to fleshed-out concepts with real potential to earn money. Blockchain incubators are no different. These programs can be instrumental to the success of your company if used right.
If you only have a rough idea of what you want your Blockchain technology to do, you are certainly better suited to a Blockchain incubator program. Here, you will meet professionals in this field who can assist you in shaping your idea and presenting it to investors.
A blockchain incubator will provide you with office space and the resources you need for your research. You may also receive training on writing a business plan and any other support you need. After that, you will create a viable plan detailing how you could turn your idea into money.
In addition to creating a business plan, you will also deal with intellectual property issues at the incubator. This may require legal expertise, which you will get during the program.
Blockchain incubator programs can run for months, and the organizers may require you to move to a specific location for the duration. You, therefore, need to be flexible and anticipate moving for the training.
After the program, your idea should be ready for pitching to potential investors. You may seek venture capital firms to invest in your now fully formed idea or even get capital from angel investors.
One of the best things about blockchain incubators is the opportunity that promising entrepreneurs receive to help them in defining their ideas. Additionally, these programs give people a chance to connect with others in the industry. The contacts that you make during your time at the incubator could end up being invaluable as your company grows.
On the flip side, it might be difficult to get substantial funding for your business at an incubator. Once your idea is fully formed, you need to source for investors aggressively. And there is no guarantee that companies or individuals will be willing to provide you with capital.
Unlike incubators, blockchain accelerators are programs designed to fast-track the growth of blockchain startups. Accelerators rely heavily on investment, although training and mentorship form a sizable part of the programs, as well.
Blockchain accelerators are for businesses that are past the initial steps of setting up a company. By this point, the company already has a product with proven viability.
If you want to get into a blockchain accelerator, you have to show the organizers proof of your concept, as well as a track record for your business. You should already have a team working with you if you need extra help. Essentially, you should have figured out most aspects of your business before approaching blockchain accelerators.
If the investors deem your idea viable, they will inject capital into it, allowing you to scale exponentially. The important thing is you have a plan for using the money wisely to propel the company's growth.
Other than monetary investment, accelerator programs also offer much-needed business management coaching. This is particularly important for blockchain startups, where most entrepreneurs are quite young and relatively inexperienced.
Additionally, blockchain accelerators are great networking spaces. You get to interact with people who are already well versed in the world of blockchain and who can provide you with invaluable insight.
Since you need solid evidence to convince potential investors to buy into your company, it is best to go armed with facts and figures of the profits you have made. You will also need estimates of how much more you expect to make with their input. As long as your pitch makes financial sense, there is a good chance that they will want a piece of your company.
There is no denying that the capital you get from investors can go a long way in helping your company to grow. But however tempting that might be, blockchain accelerator programs are not ideal for companies that cannot stand on their feet. You have to be confident in your business model and your scaling plan for accelerators to work for you.
When it comes to which is better, blockchain incubators or blockchain accelerators, the answer depends on the current phase of your company.
If you need time to piece your company together and figure out how to make money through blockchain technology, pick a blockchain incubator. If, on the other hand, your company is well established and only needs capital to reach its full potential, then accelerators are your ideal choice.
Regardless of whether you need direction or capital most, you must be careful where you seek help. Associate with people in the blockchain technology business because they have the experience and insight you need. No matter how experienced or skilled a mentor is in the hospitality business, they will probably provide little value to you as a blockchain entrepreneur.
Blockchain incubators and accelerators can provide priceless help to upcoming entrepreneurs in the field. However, each is better suited to a particular business stage than the other.
Startups in their infancy will benefit the most from incubators, while SMEs will benefit the most from accelerators. You stand to gain a lot of benefits by choosing the right program for your company.
"I really, really like the article. It's very clear and well written."
