To my surprise, most of these incubators are paid through grants and also a fee-based contract that could guarantee between 7 to 10 percent of the business’ equity, and up to 50 percent in some cases
A couple weeks ago, I was online helping my daughter Mia with some research about startup companies for a business class that she is currently taking. While doing the research, I came across an article that grabbed my attention. The article was about a business incubator. Now, I must admit, I had no idea what this term meant. I know what an incubator is, so I assumed that a business incubator was like a “nurturing” environment for a new business. I wasn’t exactly wrong, but there’s more to it than that. These business incubators are a team of professionals who provide mentorship, education, investor access, and more to startup businesses. The service helps startups that lack solid business models to develop the ideas into a product or service that can eventually become a successful revenue generator. I discovered that there are four types of business incubators, and they are venturepreneur, innopreneur, entrepreneurial success, and innovation-driven startup. This all made more sense, but what I didn’t understand was how these business incubators got paid. I assume these startup companies don’t have a solid financial backing either. To my surprise, most of these incubators are paid through grants and also a fee-based contract that could guarantee between 7 to 10 percent of the business’ equity, and up to 50 percent in some cases. I am glad I came across this information because if I ever need this service, I am fully aware of what it is. Anyway, my daughter got an A for her research paper, and in the process, I learned something new.