Incubators “shelter vulnerable nascent businesses, allowing them to be stronger to become independent” (National Business Incubation Association). Incubators serve as a temporary space for start-ups to develop in their early stages. Unlike accelerators, there is no formal curriculum, cohorts, or duration of stay. Residents of incubators pay fees for both rent and services, and are not offered the breadth of resources found in an accelerator. (Fehder and Hochberg, 2014)
Other types of institutions within the Houston area were also analyzed. Co-Founder institutions work to match eligible entrepreneurs with experienced business people and experts in relevant fields. There is an understanding that these more experienced individuals will co-found start-ups with the entrepreneurs, potentially providing funding and guidance as well. Hubs, also known as tech hubs or startup hubs, are entities that serve as an intersection between incubators, accelerators, and co-working spaces to foster an entrepreneurial ecosystem and environment. Hubs serve as leaders in their local entrepreneurial communities, enabling entrepreneurs through a wide variety of programming, events, and benefits. Co-working spaces represent institutions that provide collaborative and shared space for entrepreneurs and fledgling start-ups. Co-working spaces oftentimes offer other services beyond just the physical space such as mentorship, networking and educational programs.
Institutions outside of the Houston area of significant reputation and success were also analyzed as comparative benchmarks for Houston's progress. While Houston's institutions cannot be expected to perform at the exact same standards as these pinnacles of the industry, TechStars, NVC, and YCombinator represent the potential for Houston's institutions and as a target for growth.