Incubators and accelerators contribute significantly to the economy of the country because they are the places where new companies can learn and expand their ventures and provide them with opportunities to find financing through access to specialized mentoring, networking, and other forms of support. The support model developed in the 1990s aimed to apply academic knowledge to the productive sector and encourage training; over time, it evolved into long-term programs emphasizing the economic role of accelerators and incubators.
Capital structure, and a good financial support to the companies. Mexico has over 250 business incubators and accelerators, most of which are run by governments, organizations and higher institutions including the Tecnological de Monterrey, the National Autonomous University and Mexico (UNAM), Carlos Slim Foundation, Grupo Bimbo among others.
Incubators and Accelerators
In Mexico with some program of incubation or acceleration and have a survival rate in the 70 percent.Another element to note is that the companies registered in these programs end up formalizing their administratives in less time and that way are able to reach a greater market and have better provisions in legislation and taxes and establish themselves as a key piece in the creation of employment.
Fintech (Financial Technology). Some of the most benefited companies are the ones that revolve around innovative solutions to enhance access to financial services, electronic payments, crowdfunding, or loans. E-commerce and Logistics. The rapid expansion of online trading in Mexico has made such businesses buy these programs in their sales platforming, internet marketing, and distribution services.Food and Beverages.
How Effective Are Incubators and Accelerators?
Education. The past years have seen a rise in the demand of technologies used in education (EdTech). According to a report written by Global Accelerator Learning Initiative (GALI), a third of all Mexican companies that had applied to be a part of acceleration programmes had used similar programmes in the past. This is especially prevalent in the financial services/energy (40%) and in the environment, education and agriculture (25%) types. These newer and more established companies were the ones.
Who had a fair growth by the time of re-entry into the program. The entrepreneurs, when asked said that the first time they participated they were able to get their projects off the ground whereas with the second program they required more focused and specific technical guidance as to how they could expand their business and scale it to a new level. By doing that, they proved their disciplined contributions in fundraising, which granted them the right to access the investors as the most desirable reward and through the accelerator to promote their presence in the market and come.
Defining “Incubators” and “Accelerators”
Up with possible ideas on how to reach new consumers. In Financiera Cualli we know the greatness of developing your business to the next level this is why we are offering you loans on business with amount 1 to 10 million pesos depending on your need. As a result, investors have progressively increased their involvement with an expanding network of accelerators and incubators in the startup ecosystem to offer support.
The early-stage company and help them grow. However, what is the difference between the two forms of organizations and how are they involved in seed capital Generally, accelerators are short-degree programs that offer mentorship and other resources, as well as initial funding to startups to grow the business. On the other hand, incubators are usually long-term programs which provide office facilities and other operational requirements to enable the startups to push off Accelerators as well as incubators are useful to fund startups, offering them resources and support that young businesses require to develop.
Conclusion
Nevertheless, it is necessary to mention that not every accelerator or incubator is the same. There are those who are more capable than others in assisting startups to get financing. In the matter of securing the funds, the key thing start-ups should have is their sounding business plan and presentation. This is where accelerators and incubators may also be very useful since they can offer startups the kind of mentorship and resources that they can use in coming up with a good proposal In addition, most accelerators and incubators enjoy some connections with investors who can open up.
A door to startups on their way of raising funds. Even when a startup may not raise funds via an accelerator or an incubator, the learning experience and contacts undertaken in the process could also be one of great value to the startup as they will move seeking funding. Naturally, there are some drawbacks, associated with the work in an accelerator or an incubator.
