The benefit of the incubator/accelerator model is best summed up by Phil Morle of Sydney’s Pollenizer when he said: “I think most of the start-up culture understands now that ideas are cheap, and that it’s the execution that’s really difficult.” The business incubator or accelerator gets the rubber on the road as fast and as cost effectively as possible and wraps around it the business people who have done it before and know some tricks. For example, 87 percent of firms that graduated from incubators since inception are still in business, according to an NBIA ’Business Incubation Works’ Report.

Incubators and accelerators have the same mission – both aim to get young companies over the initial start-up hump. The main difference is that the incubator is there from the beginning helping to build the business – they act as co-founders which typically involves early-stage investment, heavy mentoring, guidance and resourcing. It’s essentially a business bootcamp that will either kill you, or build you into a strong, lean and profitable business. Accelerators on the other hand begin with a cohort intake process whereby they accept applications for entry and pick a set number per round, they make an equity investment in the start-ups, and in-turn the business model is based on generating venture style returns, not rent, or fees for services. Finally they add value to the entrepreneur via mentoring, making connections, and the notoriety that comes from being chosen to be a part of the accelerator.

Here in Australasia we are well serviced by business incubators and accelerators, particularly if your business idea falls into the digital technology arena. Australia has a greater offer of accelerator programmes with a number of start-ups being accepted into a range of three to six-month programmes. Australia also differs to New Zealand in that at least half of its incubators are driven by private individuals or enterprise. New Zealand has only a handful of accelerator programmes and the mostly private/public partnership incubators dotted around the main centres appear slightly more nebulous in terms of their offerings, promoting more of the entrepreneurial ecosystem (think office space), mentoring and the promise of an introduction to people who can invest and help.

New Zealand Incubators and Accelerators

The Icehouse & Ice Angels
www.theicehouse.co.nz
Auckland
Incubator
Soda Inc
www.sodainc.com
Hamilton
Incubator & entrepreneurial hub
3 Creative HQ & the Lightning Lab
www.creativehq.co.nz
Hamilton
Incubator & entrepreneurial hub
Creative HQ & the Lightning Lab
www.creativehq.co.nz
Wellington
Incubator & accelerator
eCentre
www.ecentre.org.nz
Auckland
Incubator & accelerator
powerHouse Ventures
www.powerhouse-ventures.co.nz
Christchurch
Investor/incubator
Upstart
facebook.com/UpstartDunedin
Dunedin
Incubator

Australia Incubators and Accelerators
StartMate
www.startmate.com.au
Sydney
Incubator & angel investor
Pollenizer & Pollenizer Ventures
www.pollenizer.com
Sydney
Incubator & venture capitalist
Blue Chilli & Blue Chilli Capital
www.bluechilli.com
Sydney & Melbourne
Incubator/accelerator & venture fund
York Butter Factory & Venture Capital
www.yorkbutterfactory.com
Melbourne
Co-working space & venture capitalist
iLab
www.ilabaccelerator.com
Brisbane
Incubator/accelerator
muru-D
www.muru-d.com
Sydney
Accelerator
Optus-Innov8 Seed
www.optusinnov8seed.com.au
Sydney
Angel investor