What is an Incubator?
What is an Incubator?
The traditional incubator was a company set up to make seed investments in start up businesses to accelerate their growth to gain most from first mover advantage, to maximise potential financial gain from future exits.
The incubator provides professional support and contacts, back office services and infrastructure, detailed knowledge, professional advisors and financial expertise, allowing the incubatee to concentrate on growing and operating their business. Portfolio management of a number of investments allowed investment to be made in the riskier start up ventures in return for shares. Traditionally £100,000 seed capital for an investment up to 30/40% of initial equity, with milestone deliverables required for release of full amount.
What is a Social Enterprise Incubator?
As above, but with the emphasis on the acceleration to sustainability rather than exit. Benefits being measured in terms of social outcomes and environmental impact rather than financial return.
By creating sustainability, we can maximise benefits.