The Role of Incubators and Accelerators in Entrepreneurial Fundraising

Within entrepreneurial ecosystems, incubators and accelerators play a crucial role in nurturing and boosting startups in many different sectors. Although both facilitate action for innovative companies at a very early stage, they offer very different services and have very different selection criteria. What they have in common, however, is that they are a deeply interesting financing option for startups, since they can be the promoters of the company, offer participatory loans, or provide funding in exchange for equity. In some cases, they even offer grants that the startup does not have to pay back. This chapter discusses the different financing options and services offered by incubators and accelerators. It also describes examples of incubators and accelerators that are international references among those of its kind, including private initiatives, initiatives led by large companies, and public initiatives, where programs managed by universities stand out.