The incubators and accelerators market | France

1.1 Definition and scope of the study

Incubators and accelarators are often used synonymously, and although the ultimate goal is to help startups grow and attract capital, the two terms differ in their definition. 

• Incubators incubate a business idea and aims to transform the idea into a business model and later a company. This relationship between the incubator and the company can run without a final date. Usually incubators do not invest in the target company.
• Accelerators help accelerate growth for already exisiting companies, and the timeline is set. Usually it ranges between 3 to 4 months, and accelerators often take an equity stake so to align interests with the startup in question. 

The number of incubators and accelarators are growing globally to meet demand from startups who compete more intensely than ever for funding. 

In France, the market is amongst the most mature in the world, with a high number of startups as well as incubators and accelerators. For instance, the world's largest incubator, Station F, is French. 

Going forward, players in this industry must look to specialisation, diversification of the services they offer, and internationalisation in order to differentiate and stand out in a market which is characterised by a large supply offering.