Business incubators are designed to accelerate the successful growth of selected young companies. They offer a myriad of services which may include access to physical office space and amenities, educational programs, funding sources, mentorship and professional services. Often run by nonprofits, venture capital firms or universities, incubators have many different missions and approaches. One common denominator is their dedication to identifying and building emerging companies in their communities.
The San Francisco Bay Area has thirteen incubators listed as members of the National Business Incubation Association (NBIA), a global organization that advances entrepreneurial success by serving as a clearinghouse of information on incubator management and development issues.
At the Plug and Play Tech Center over 150 start-ups work closely with one another and with the center’s network of funding sources, universities, corporations, mentors, and strategic partnerships. According to its website, it has helped companies raise over $450 million since its inception in 2006.
According to its website, QB3 Garage has created an incubator that allows very small companies access to modern laboratory space, thereby helping them move efficiently from conducting biomedical research to creating biotech companies.
La Cocina claims to be San Francisco's first incubator kitchen. It was founded to serve as a platform for entrepreneurs launching, formalizing or expanding their food businesses. La Cocina provides affordable commercial kitchen space and industry-specific technical assistance to low-income entrepreneurs in order to bring their businesses quickly to a point of self-sufficiency.
NBIA members are not the only organizations offering business incubation services. Entrepreneurs may find other programs that are more suited to their needs by doing a little research on services in their communities.
With so many choices and the health of a new company at stake, NBIA recommends that entrepreneurs do their homework before selecting an incubator. It is a good idea to know something about a program’s track record, graduation policy, and the qualifications of management and staff. In addition, entrepreneurs should take some time to do a needs-assessment where it determines what services it needs and what it is willing to pay for them. For instance, does a company need contacts, professional advice, access to capital or other services? Is a company willing to pay for services or would it rather grant equity in exchange for incubator services? Once an assessment is complete, an entrepreneur should examine whether a prospective incubator satisfies certain core goals. See "Before you start negotiating" for some tips on topics to consider before you sign a deal with any company, including an incubator.
When properly aligned with young companies, incubators can be a valuable resource to accelerate business growth in a relatively short time.
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