Many specialized firms have emerged over the last few decades to help startups and their founders in raising funds or providing mentorship and guidance. Among them, the most well-known catalysts are startup incubators and startup accelerator programs. But lately, company builders, also known as “venture builders” and venture studios which can be also referred to as tech studios, startup factories, or venture production studios, have gained prominence. Confused? This article will help you to sort out the key differences and guide you in choosing the right program. - Author: Jona Hauch
Both, startup incubator programs, and startup accelerator programs, can be referred to as “accelerators”. Startup incubators accelerate the launch phase of a company, whereas accelerator programs focus on scaling a startup. They offer basically the same kind of resources, although the content is of course adapted to their focus.
| Startup Programs | Incubator | Accelerator |
|
Description |
An incubator helps startups to bring their idea to maturity, develop or mature a minimum viable product (MVP), and achieve product/market fit. |
Once product/market fit is reached, a startup accelerator can help scale the project massively. |
| Content | Guidance, training, networking, funding. | Guidance, training, networking, funding. |
| Focus | Business Modell, Product, User. | Growth, product-market fit. |
| Startup stage | A basic idea or problem to solve and some initial research is a good foundation. | You should have customers and know who your ideal customer is → product-market fit. |
| Product | Not needed. | Needed. |
| Equity | Depending on the programs, the main part should be yours. | Depending on the programs, the main part should be yours. |
| How to participate | Apply with your skills, your idea, or your startup. Programs can be free or paid. | Apply with your startup. Programs can be free or paid. |
Company builders and venture studios are companies that create and develop several startups at the same time, often in a strategic way and focusing on a specific sector. Those startups are often created and accelerated within their own incubator or accelerator programs like BFG Superstars, BFG Adrenaline, and YCombinator (all are company builders) are doing it. The key difference is that company builders are looking for entrepreneurs to launch a startup from 0, whereas venture studios launch startups with their own resources and then hire CEOs to run the startup.
| Startup Creator | Company Builder | Venture Studio |
|---|---|---|
| Description | Company Builders focus on cultivating potential ideas and leaders through a very hands-on process and then supporting long-term growth. | A venture studio builds startups with its own ideas and resources, then hires CEOs and pays them to run the startup. |
| Focus | Each project is executed by a different team of entrepreneurs. | The same core team validates new projects and then recruits a team to develop the idea further. |
| Startup stage | Join the startup from the beginning as a founder. | Join the startup within the process as a CEO. |
| Equity | Typically gets a 6-15% equity stake in your startup. | Typically holds a 30-75% equity stake in the startup. |
| How to participate | Apply to get hired as a founder and you may receive a salary. | Apply to get hired as a CEO and receive a salary. |
A startup incubator is a program that guides and teaches startups in the very early stages. Usually, you have experienced startup experts giving workshops on specific topics such as idea validation, MVP creation, business model, etc. Moreover, the right mindset to become a successful entrepreneur is cultivated. In addition to the courses, you can also contact the experts for specific, individual needs. The basic idea is to help you create a stable foundation on which to build your startup, with the first goal of reaching product-market fit. At the end of a startup incubator program, you will usually have the opportunity to pitch to potential investors in order to receive pre-seed funding.
Before applying to an incubation program you should select the right one for you. Here are some points to consider:
In case you want to know more about startup incubator programs, read our article here: What is a Startup Incubator?
Once you've achieved product-market fit, it is time to join a startup accelerator program. An accelerator can be seen as the next step after a startup incubator while it is not necessary that you have joined an incubator before.
Achieving product-market fit requires that you have already acquired customers and know exactly who your ideal customer is. At this stage, you are all set to massively scale your startup. A startup accelerator program can help you with expert guidance and education to focus on your startup growth, and provide financial resources and an invaluable network. Usually, you are also getting prepared for investor pitches to raise seed capital.
Before applying to an accelerator program the following points should be considered:
In case you want to know more about startup accelerator programs, read our article here: Startup Accelerator Program - everything you need to know
Company builders, also known as "venture builders” and venture studios, also called “tech studios”, “startup factories” or “venture production studios”. These companies can be venture capital firms that strategically launch new startups from scratch by offering incubator or accelerator programs.
Generally, they develop many projects and ideas simultaneously, exploring different ideas that complement each other through structured, iterative processes to create businesses. They engage leadership teams to develop these ideas and launch the most successful of them as stand-alone companies.
Company builders and venture studios are both organizations that help create and develop new companies. However, there are some key differences between the two:
In case you want to know more about company builders, read our article here: Company Builder - Everything you need to know
There is no “better” or “best” when you compare a startup incubator vs accelerator vs company builder vs venture studio. Each opportunity should be evaluated based on your situation and needs. Maybe the following decision tree helps you with your decision:
Figure 1: Decision tree for entrepreneurs to find the right fit.
The BFG Superstars program is a 3-month startup incubator offered twice per year starting in March and September respectively. The Blockchain Founders Group will provide mentorship, financial support, and support from top-tier experts for next-generation business models related to Web3, Crypto, DeFi, NFTs, DAOs, IoT, Bitcoin Lightning, CO2 Compensation, Metaverse, Gaming, and Privacy. As part of the BFG Superstars program, you are compensated for your time and brain power with €2,000 flat per month on a full-time basis to help you kick-start your venture. Moreover, participants can join from anywhere in the world since the program is conducted remotely only. It is possible to join alone or as a team, with, or without an idea. At the end of the program, you have the chance to receive financial support of up to €70,000 for 6-10% of your startup's equity, depending on your pitch and the business model.
BFG Superstars is looking for entrepreneurs who have:
What are you waiting for? Apply now! Check out our team, advisors, and more information.
Blockchain Founders Group (BFG) is the driving force behind web3 innovation. As a company builder, we bring together a team of blockchain visionaries, experienced entrepreneurs, and industry experts, all committed to nurturing emerging talent. Our BFG acceleration programs serve as your springboard for launching blockchain startups, transforming concepts into reality in just 2-3 months. Each cohort develops 5-8 unique web3 ideas, and selected projects will be financially supported with 70,000 - 100,000 EUR, along with access to our extensive network. Join us in shaping the future of web3!
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Contact: Max Zheng, Director of Investments, max.zheng@blockchain-founders.io