Whatever their strategy, these firms are no longer embarrassed to call themselves incubators. And they have a crucial role in Europe. In the United States, angel investors help startups do both. Typically, these angels are successful entrepreneurs and executives who get involved with startups and provide them with advice as well as a piece of their personal fortune at a very early stage. In Europe, angels and tech millionaires are still rare.
Incubators fill the gap.
Incubators already hatch Internet subsidiaries for large firms, so it's fitting they would help them restructure and spin off portions of their operations into dynamic tech companies. Many U.S. dot-coms have stumbled trying to enter Europe. Good incubators can help avoid this trap. It is possible, of course, that incubators may evolve into something different as the new economy matures in Europe. Already, some incubators are morphing into VC firms, consultancies or investment banks.