Fintech Incubators and Accelerators
Starting a fintech typically takes a lot of work. From the actual product development to securing partnerships with banks offering embedded finance, we knock down a few items - only to realize we have looming compliance demands that we're required to meet before going live. That said, it's evident that the checklist for a fintech is a long and strenuous process, but we can always look for help from the community. Let's look at fintech incubators and accelerators and how these programs help your Fintech grow.
What are Fintech Incubators?
A fintech incubator is a company that helps early-stage fintech startups grow and scale their business. Incubators create an environment for entrepreneurs who are still determining what they'd like to bring to market but know they want to invest in starting a fintech that matches their vision for technology. Typical offerings from a fintech incubator are as follows:
- Resources
- Mentorship
- Capital
An old trope that deems true-- you become a product of your environment. In the case of fintech incubators, surrounding yourself with like-minded individuals is critical when developing your product, especially your infrastructure. Contrary to having a product already conceived, fintech incubators typically encourage you to express your skills and find a product that aligns well with your core niche.
What are Fintech Accelerators?
Unlike fintech incubators, fintech accelerators are non-profit organizations that help startups with technology and business development. Usually, the entrepreneur has passed the initial stage of product development and may have established a couple of contracts. They then go to fintech accelerators for their denoted definition, accelerating the growth of their Fintech.
Fintech Accelerators come in handy during the inevitable growth stage. Contrary to providing an environment to help hone an entrepreneur's skills, these programs offer more/less networking opportunities. Whether it be finding an individual who can build out infrastructure, a company that can integrate into your product, or even finding potential partners to offer your product through, accelerators are essentially incubators but without the initial environment.
Benefits of joining Fintech Incubators and Accelerators
There are plenty of reasons to join fintech incubators and accelerators. The resources and environment play a pivotal role in developing your Fintech; there are also the resources and opportunities for VC funding and partnerships. Overall, the biggest reason to join a fintech incubator and accelerator is the networking opportunities.
Creating a sophisticated product should be at the core of our business model, but what comes next is purely up to leadership and how they handle the growth scale of the business. Let's take a look at some of the benefits of joining either:
- Resources and Partnership: An evident benefit of joining a fintech incubator or accelerator will always be the network. Specifically, the network for partnerships and VC funding has a higher chance of being established in these environments.
- Mentorship: Similar to partnership opportunities, we can also find mentorships through Fintech Incubators. While we may understand our product to a tee - as we should, we should also be open to learning business development from others who have done something similar. These programs give many mentorship opportunities for individuals who want to see your idea thrive.
- Market Exposure: More an indirect benefit of fintech incubators and accelerators-- the market exposure. While these programs typically help you build out your Fintech, there may be plenty of opportunities to promote your business. While not explicitly promoting your business, there should be ample partnership opportunities with other companies.
Conclusion
Building a Fintech from the ground up is a challenging and lengthy process. From the initial product concept to the actual engineering and business development, creating a Fintech takes work. However, bringing your vision to life and changing how users leverage technology has to be the most gratifying feeling - making all the work worth it. With all the resources available today, there's nothing wrong with looking for help in some of these processes. Fintech Incubators and Accelerators are an excellent queue for all fintech startups. From the resources to the partnership opportunities and market exposure, these programs do an exemplary job at what they're denoted for-- growing your fintech business.
Are you a fintech looking for your next partner? Or are you looking to get on the map? Find our resources and look at our map to find prospects that align with your Fintech today.