Incubator
An organization that helps very early startups develop ideas, often providing workspace and mentoring.
Definition
An incubator supports startups at the idea or pre-product stage, providing office space, mentorship, and sometimes small amounts of capital. Unlike accelerators, incubators typically have no fixed timeline and may or may not take equity. They focus on nurturing ideas into viable businesses rather than rapidly scaling existing ones.
Why it matters
Companies that came through incubators are often very early stage. If you join an incubator-stage company, your equity is higher risk but potentially higher reward, as you are getting in at the ground floor.
Example
A university incubator provides free office space and $25K in grants to 10 student-founded startups per year, asking for no equity. Teams spend 6-12 months building prototypes before applying to accelerators.