Business incubation mode VS venture capital mode, which is more suitable for startup companies?

Venture capital companies may not want to undertake the hard work of business incubation companies. Like typical investors, venture capital companies only provide certain funds and expect to get corresponding returns. Unlike venture capital firms, business incubators tend to develop products.

Let's look at the specific differences between venture capital companies and business incubation companies.

Financing: direct financing, such as cash injection; Provide funds indirectly, such as paying salaries, developing products and paying marketing expenses.

Product development: the startup company is required to provide a prototype. If it is not the core development team of MVP startup incubator company, it can jointly develop products with the startup company or independently develop products.

Office space and recruitment: you can recruit senior executives, provide consulting for startup companies, and do not provide office space; Provide joint office space and talents.

Marketing: no marketing strategy is provided; Provide early marketing strategy.

Training and guidance: usually only guidance is provided; Provide guidance and training.

Management: do not provide relevant content; Start-up companies should join the management system of business incubation companies.

Corporate culture: created by entrepreneurs themselves; First, adopt the corporate culture of the startup incubator company until the startup company has its own employees and can operate independently.

Number of users: there must be a certain user base; Not a prerequisite, strategic partnership, commitment and experience are more important.

Equity: take less equity; Take more equity.

Risk sharing: low risk; Take more risks.

Industry preference: the portfolio can be diversified; Very targeted.

Expectations for entrepreneurs: return on investment; The speed of implementation and expansion is very important.