All of this now makes sense, but I am not clear on how these business incubators are financed.
In a recent business class my daughter Mia was taking, I was helping her research startup companies. As I conducted my research, I came across an article that caught my attention. The article discussed a business incubator. I had no idea what that meant. I assumed an incubator would provide a nurturing environment for modern businesses since I am familiar with the concept of an incubator. While I was not exactly wrong, there is more to the story than that. Typically, business incubators are staffed with professionals who assist startups with instruction, education, investor access, etc. By providing maintenance, startups can develop ideas into products and services that may ultimately become successful revenue generators. There are various types of business incubators, such as venturepreneurship, innopreneurship, entrepreneurial success, and innovation-driven startups. All of this now makes sense, but I am not clear on how these business incubators are financed. I also believe the startup companies lack solid financial backing. To my surprise, most of these incubators receive grants and also receive a fee-based contract that guarantees between 7 to 10 percent of the company’s equity and up to 50 percent in certain cases. Following my discovery of this information, I am now fully aware of what this service entails in case I need it in the future. Anyhow, my child received an A on her research paper, and I learned something new in the process.