Like venture capitalists, incubators impose strict selection criteria on their prospects. While some accept a mix of industries, many focus on a single niche like the Internet, technology, or biomedicine. The process for applying to an incubator is similar to getting equity financing. Once they review those materials, they will decide if they want to see your entire business plan. If that interests them, several rounds of interviews may begin.
Incubators have a number of obvious benefits.
They provide structure for many of a company's most basic needs, allowing entrepreneurs to remain focused on developing their ideas. In addition, incubators are often able to attract resources that members could not attract independently. Incubators also often have relationships with venture capital firms, providing a strong entr e for later rounds of financing. On the downside, because they provide more services than typical equity outlets, for-profit incubators often demand more in return. This means you may have to give up a greater share of ownership for less funding.