Last week I was reading an article about a successful entrepreneur that had started an incubator to work on multiple startups simultaneously. Incubators, now called studios or labs, were popularized during the dot com boom, and most failed to work, leaving a negative connotation for many people. Now, the cost to start is 10x cheaper and there are millions of people with mobile broadband connections, making for a different dynamic compared to 15 years ago. While it is still expensive to scale, getting started is easy.
Here are a few ideas why entrepreneurs are drawn to incubators:
- Timing a market is terribly difficult, so having multiple startups running simultaneously increases the chance of finding a fit
- For many (most?) entrepreneurs, the starting part is more fun than the scaling part
- Small, dedicated teams without a legacy customer base can innovate fast, making it more fun to see rapid progress
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