The technology business incubators now primarily have 3 streams of revenue -

  • Rentals & equipment usage charges
  • Charges from services
  • Earning from selling equity in the incubatee companies
  • Now the interest of VCs in initial stage funding is coming down and the focus is moving to later rounds of funding. In this scenario, what are the chances of an incubator, which may take share anything upto 10% in an incubated startup, generate adequate revenues ?

    Are there some examples of successful incubators operating on equity model?

    What are the component-wise mix of revenue streams in maximum number of incubators?

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