Assignment:01

Subject: Entrepreneurship

Submitted By:
Name: Atta Ur Rehman
ID: F21606013
Submitted To:
Dr. Sohaila Andleeb
Date: March 18, 2024

DEPARTMENT OF CIVIL ENGINEERING BET-CE 2021

NATIONAL UNIVERSITY OF TECHNOLOGY, ISBD

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 TABLE OF CONTENTS
TITLE: .......................................................................................................................3
OBJECTIVE OF THIS ASSIGNMENT.................................................................3
INTRODUCTION ....................................................................................................3
INCUBATOR ............................................................................................................4
ACCELERATOR ......................................................................................................4
DIFFERENCES ........................................................................................................4
Purpose ....................................................................................................................4
Duration ...................................................................................................................5
Selection process .....................................................................................................5
Investment................................................................................................................5
Responsibility for success .......................................................................................5
THE ROLE OF INCUBATORS AND ACCELERATORS ..................................6
Physical spaces: .......................................................................................................6
Networking and mentoring: .....................................................................................6
Access to resources:.................................................................................................6
Industry-specific programs: .....................................................................................6
Collaborative partnerships: ......................................................................................6
PROMINENT STARTUP INCUBATORS AND ACCELERATORS IN
PAKISTAN. ...............................................................................................................7
1) PLAN9.................................................................................................................7
2) The Nest i/o .........................................................................................................8
3) LUMS Centre for Entrepreneurship ...................................................................8
4) i2i .........................................................................................................................8
5) PlanX ...................................................................................................................8
6) Microsoft Innovation Centre ..............................................................................8
7) Technology Incubation Centre ............................................................................8
8) DotZero ...............................................................................................................9
9) Basecamp: ..........................................................................................................9
REFERENCES........................................................................................................10

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TITLE:
Understanding the Differences Between Startup Incubators and Accelerators, and
Spotlighting Prominent Initiatives in Pakistan
OBJECTIVE OF THIS ASSIGNMENT
i. Differentiate between startup incubators and accelerators, highlighting their
structural and operational variances.
ii. Explore the role of startup incubators in providing long-term support and
resources to early-stage ventures.
iii. Identify and analyze prominent startup support programs in Pakistan, assessing
their impact and resources.

INTRODUCTION
For entrepreneurs embarking on the journey of starting a business, accessing support
and resources is essential for success. Startup incubators and accelerators serve as
valuable platforms where they can receive guidance, mentorship, and funding
opportunities. Despite their similar objectives, it's important to understand the
distinctions between the two.

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INCUBATOR
An incubator is like a school for startups. It helps new businesses grow from just
ideas to fully formed companies. These programs are there to guide startups through
all the challenges they face, from coming up with a solid business plan to growing
their business. Incubators usually work with many startups at once, covering different
industries. They're all about boosting the local economy, so they get funding from
both public and private sources. They often have close ties with universities and
investment firms, which helps them support new talent and encourage innovation.
Startups can stay in an incubator until they reach important goals, but there's no strict
timeline. And many incubators operate as non-profit organizations, meaning their
focus is on helping startups succeed, not making money.

ACCELERATOR
An accelerator is like a fast-track program for startups that are already on their way.
These programs are for companies that have already started developing their product
and might have even received some funding. Accelerators speed up the growth
process by providing professional support, education, and sometimes even money,
which would otherwise take a long time to get.
Accelerator programs have specific start and end dates, usually lasting from three to
six months, with a maximum duration of one year. Startups go through the program
together, working towards the same goal. The focus is on helping these companies
grow quickly and build their portfolios. Accelerators often bring in experts, investors,
and successful founders to provide guidance and form partnerships. This
personalized mentorship helps startups overcome challenges in a shorter time.

DIFFERENCES
Following are the differences between startup incubators and accelerators.
Purpose
• Incubators: Build the foundation for new startups.

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 • Accelerators: Promote the growth of existing startups.
Duration
• Incubators: Have a relatively open time horizon (between 3 and 36 months).

They focus on the long-term success of the startup, not the pace of its growth.
• Accelerators: Operate within a set time frame (between 1 and 6 months).

They expect startups to be fast-growing.

Selection process
• Incubators: Are often open to all startups, even if they are slow-growing or

less scalable.
• Accelerators: Require participants to apply to a competitive program. They

typically look for startups that are scalable, investable, and fast-growing.
Investment
• Incubators: Usually do not provide capital or take equity stakes in the

startups they support. They often receive funding from universities or

economic development organizations.
• Accelerators: Invest capital in exchange for equity (between 5% and 15%) in

the startups they accept into their programs.

Responsibility for success
• Incubators: Help startups even if they are slow-growing or less scalable.

They play a lesser role in the ultimate success of the startup.

• Accelerators: Expect a high return on their investment and have a greater

responsibility for the success of the startups they choose to fund.

As we can see, incubators are designed to provide a nurturing environment for

startups in the early stages of development. They offer resources and support to
help startups get off the ground, such as office space, legal advice, and sometimes
seed funding. Accelerators, on the other hand, are more intensive programs that
focus on helping startups grow quickly. They provide mentorship, guidance,
resources, and funding in exchange for equity in the startup.

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THE ROLE OF INCUBATORS AND ACCELERATORS

Incubators and accelerators serve as crucial catalysts for collaboration among

startups, offering structured programs and support services. Here's how they
facilitate collaboration.

Physical spaces: Providing shared workspaces encourages interaction and

serendipitous encounters among entrepreneurs, fostering collaboration. For
instance, tech startups and marketing agencies in the same space may discover
synergies leading to mutually beneficial partnerships.

Networking and mentoring: Through organized events and mentorship

sessions, startups connect with industry experts, gaining insights and potential
collaborators. For example, networking events can introduce startups to seasoned
entrepreneurs who provide valuable guidance.

Access to resources: Incubators and accelerators grant startups access to

essential resources like equipment, software, and funding opportunities, enhancing
collaboration. For instance, a biotech startup gaining access to cutting-edge
laboratory equipment can collaborate with peers on innovative projects.

Industry-specific programs: Focusing on specific industries fosters

collaboration and knowledge-sharing among startups. Cohorts working in the same
sector collaborate on research, share insights, and tackle challenges collectively. For
example, a sustainable fashion accelerator facilitates collaboration across different
aspects of the industry, such as materials sourcing and manufacturing.

Collaborative partnerships: Incubators and accelerators establish partnerships

with corporations, universities, and government agencies, creating collaborative
opportunities for startups. Joint projects leverage resources and expertise to achieve
groundbreaking results. For instance, a startup collaborating with a university
research lab benefit from combined resources for innovative solutions.

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PROMINENT STARTUP INCUBATORS AND ACCELERATORS
IN PAKISTAN.
1) PLAN9
Location: Lahore
Year Founded: Mid-2012
Plan9 is part of a provincial government initiative. It has incubated over 60 start-
ups, providing a three-month program with free office space, consultancy, and
mentoring. It does not take equity.

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 2) The Nest i/o
Location: Karachi
Year Founded: Early 2015
Associated with PASHA, The Nest i/o has received funding from Google, Samsung,
and the US State Department. It offers free office space, mentorship, and does not
take equity.

3) LUMS Centre for Entrepreneurship

Location: Lahore
Associated with Lahore University of Management Sciences, it offers a four-month
program with free office space and counseling. It takes a small equity percentage.

4) i2i
Location: Islamabad
An accelerator for early and mid-stage companies focused on social impact. It runs
a four-month program with equity stakes ranging from 1.5 to 3 per cent.

5) PlanX
Location: Lahore
Designed to complement Plan9, it offers a six-month program with free office
space and consulting without taking equity.

6) Microsoft Innovation Centre

Locations: Lahore and Karachi
Offers free Microsoft enterprise software products, mentoring, and coaching.

7) Technology Incubation Centre

Location: Islamabad

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 Associated with National University of Science and Technology, it focuses on
hardware, engineering, and big data. It offers free office space and mentorship,
taking a small equity percentage.

8) DotZero
Location: Lahore
More of a co-working space, it fosters synergy and cooperation between start-ups.
Founding members launched an angel investment fund.

9) Basecamp:
Location: Peshawar
An invite-only co-working facility aiming to foster entrepreneurship through
community-led efforts.
10) Founder Institute

Locations: Karachi and Islamabad

Structured over three and a half months with weekly meetings. Requires 3.5%
equity contribution and a one-time fee of US$250.
11) Nspire

Private tech incubator started by Netsol, currently accepting applications for its
first batch of start-ups.
12) Tech Incubator

Location: Lahore
Privately-managed incubator accepting start-ups year-round. Takes a significant
equity percentage.

13) WeCreate Pakistan

An entrepreneurial community center exclusively for women, supported by the

US Department of State. Spread over 15 weeks.

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REFERENCES
i. https://capbase.com/startup-incubators-vs-accelerators-what-are-the-
differences/
ii. https://annarborusa.org/news/what-is-the-difference-between-startup-
incubators-and-business-accelerators/
iii. https://b-plannow.com/en/startup-accelerators-and-incubators-what-they-
are-and-what-are-their-differences/
iv. https://fastercapital.com/content/Collaboration--The-Art-of-Collaboration-
within-an-Entrepreneurial-Ecosystem.html#The-Role-of-Incubators-and-
Accelerators-in-Facilitating-Collaboration
v. https://en.wikipedia.org/wiki/Startup_accelerator

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