Startups with a unique idea often seek accelerators or incubators to help grow their businesses. The two, while similar, are different. Startups trying to accelerate growth will need to know the key differences between the two to find the right program for their startup's goal.

What are Accelerators?

Accelerators are all about early-stage support. A person has a great idea, they have some following, but they need a little more help along the way. In many ways, an accelerator is almost like a mentorship.

The support provided includes:

• Education

• Mentoring

• Financing

An accelerator will be for a set period of time. Rapid and intense, these programs are immersive and will be very intense for owners. You'll learn years' worth of material in just a few months.

When an accelerator comes to an end, it will end with a big achievement. You may have the program end with a demo being produced.

Program lengths may vary, but the typical duration is 3 to 6 months. Mentorship is intense, and funding help may be provided. Between 2005 and 2015, more than 5,000 startups received help from accelerators, and over $19.5 billion was raised to help these startups excel.

Quillbot, a paraphrasing tool, joined the iVenture Accelerator for their product. The company received $10,000 equity free, and the company was able to join a strong community that aims to guide and foster innovation.

Startups that have a unique idea that they need guidance with and funding will find that an accelerator is a great choice.

What are Incubators?

Incubators are different, and they offer early and late help so that they fit into every venture stage. The amount of mentorship is minimal and tactical, so it won't be as immersive or intense as an accelerator's education.

An incubator will be for one to five years, so they're a long-term option.

Incubators help startups find a path to bring their product to market. Open-ended, the typical incubator will focus on the startup's longevity. Candidates for incubators are local startups. The incubator will focus on creating jobs.

When startups find an incubator, they usually find an incubator at their local university or economic development organizations. Funding is not common for an incubator, and most will not take equity for helping the company.

Focusing on local startups, an incubator will be easier to join. There is far less competition with an incubator than an accelerator. The duration of the program varies and will be dependent on how far into their business journey that startup is at the time of joining.

There are some incubators that are run by angel investors, major corporations and VC firms, too. 

Startups may have to relocate for the incubator. Once joined, you will be assisted with everything, from a business plan to product-market fit, networking and any issues that may exist with intellectual property issues.

Incubators often enter into co-working spaces and will have a month-to-month lease.

Young companies that are still trying to get a foothold in a market will find opportunity in both accelerators and incubators.