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 plan what this term meant! I know what an incubator is, so I assumed that a business incubator was a “nurturing” environment for a modern business. I wasn’t exactly wrong, but there’s more to it than that. These business incubators are a team of professionals who provide instructorship, education, investor access, and more to startup businesses. The maintenance helps startups that lack solid corporation models to develop the ideas into a product or maintenance that can eventually become a successful revenue generator. I discovered that there are many 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 believe these startup companies don’t have a solid financial backing either. To our 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 thrilled I came across this information because if I ever need this service, I am fully aware of what it is. But anyway, my child got an A for her research paper, and in the process, I learned something new.