How to Choose the Right Incubator for Your Startup

Incubators and accelerators can be rocket fuel for startups. They can also be a waste of time, equity, and energy. The difference is fit. Here’s how to find the right program for your specific situation.

First: Do You Even Need One?

Be honest with yourself about why you’re applying:

Good reasons to join an incubator:

You need specific expertise you don’t have (and can’t hire)
You need introductions to investors, customers, or partners
You work better with structure and deadlines
You want credibility that opens doors

Bad reasons to join an incubator:

Everyone else is doing it
You’re not sure what to do next
You think it’ll automatically lead to funding
You want to put a logo on your website

If you have product-market fit, a clear growth path, and enough capital – you might not need a program. Keep building.

What to Evaluate

1. Stage Fit

Programs are designed for specific stages:

Pre-seed / Idea stage: Focused on validation, early customers, MVP
Seed stage: Focused on scaling, hiring, raising larger rounds
Growth stage: Focused on expansion, internationalization, exit prep

Applying to a seed-stage program with just an idea wastes everyone’s time. Applying to an idea-stage program with a functioning business is equally mismatched.

2. Industry Focus

Generic incubators can be great for cross-pollination. But sector-specific programs often provide:

Specialized mentors who know your market
Relevant investor connections
Regulatory and compliance knowledge
Industry-specific resources and partnerships

If you’re building fintech, healthtech, or climatetech – a specialized program probably helps more than a generic one.

3. Geographic Relevance

Where is the program based, and where do you want your company to be?

Consider:

Where your customers are
Where relevant investors are
Where you want to hire
Visa and relocation requirements

A San Francisco program is great if you’re targeting US enterprise customers. Less helpful if you’re building for the European market.

4. Network Quality

The most valuable part of most programs is the network:

Who are the mentors? Talk to them before applying.
Who are the alumni? What have they gone on to do?
Who are the investors connected to the program?
What companies have come through that you respect?

Linkedin and email intros to alumni are fair game. If a program won’t connect you with past participants, that’s a red flag.

5. Terms and Equity

Know what you’re giving up:

Equity taken: Typically 5-10% for accelerators. More than 10% should require significant value.
Fees: Some programs charge tuition. Make sure the value justifies it.
Investment provided: Is there funding? At what terms?
Obligations: What commitments do you make? (Relocation, time, exclusivity)

Calculate the implied valuation. If they’re taking 7% for $100k, they’re valuing your company at ~$1.4M. Does that seem right?

6. Time Commitment

Programs range from 4 weeks to 12 months. Consider:

Can you actually commit this time?
What happens to your company while you’re in the program?
Is it full-time or compatible with running your business?
Remote vs. in-person vs. hybrid?

Some founders thrive with intense, focused programs. Others need flexibility to keep operations running.

Red Flags

Watch out for:

Vague value propositions: “Access to our network” means nothing without specifics
No successful alumni: If no company has achieved anything significant, why?
Pressure to decide quickly: Good programs don’t need high-pressure tactics
Taking equity for services: Paying for mentorship with equity is usually a bad deal
No clear curriculum: “We’ll figure it out together” means they don’t know what they’re doing

Green Flags

Look for:

Alumni who rave about it: Happy founders are the best signal
Clear, structured program: You should know what you’ll get
Quality mentors who engage: Not just names on a list
Relevant investor connections: With track record of actual investments
Post-program support: Good programs don’t disappear after demo day

How to Decide

Make a shortlist of 3-5 programs that fit your stage and industry
Talk to alumni – at least 3 from each program, including some who didn’t succeed
Talk to mentors – are they actually engaged, or just listed?
Calculate the math – is the equity justified by the value?
Check your gut – do these people seem like ones you’d want to work with?

Alternatives to Traditional Programs

You don’t have to join a formal incubator:

Angel groups: Direct investment plus mentorship
Venture studios: More hands-on partnership model
Industry associations: Connections without equity
Informal mentor relationships: Sometimes better than structured programs
Coworking communities: (Hi!) Peer support without formal programs

The Decision Framework

Ask yourself:

What specifically do I need right now?
Does this program provide that?
Is the cost (equity, time, energy) worth it?
What would I do with that time/equity otherwise?

There’s no universal right answer. The right program at the right time can accelerate your trajectory. The wrong program at the wrong time can set you back.

Choose deliberately.

At Abstrakt, we host info sessions from various incubators and accelerators. Check our events calendar to learn about programs firsthand.