The services provided by incubators in the stages of life startups
Uma das principais questões que qualquer empreendedor faz é “Quais os services provided by incubators? Como posso obtê-los?”. É conhecimento geral que incubators representam a entidade que startups mais procuram.
Continue reading the article to find out what the main services provided by incubators e como podemos ajudar a colmatar aqueles que recebem menos atenção.
Contextualization of search
O número de startups em Portugal e na Europa central tem aumentado nos últimos anos. Vários empreendedores com uma visão do mercado diferente do comum vêem oportunidades e dão início aos seus projetos. A fim de apoiar estas startups, seja no seu início ou durante o seu percurso, existem vários tipos de support e empresas, tendo as incubators um grande destaque neste ramo.
As incubators or business incubators are organizations support para empresas nas suas primeiras etapas de vida. Ou seja, proporcionam um espaço de trabalho, assessoria empresarial, contabilística, financeira e jurídica. Além disso, fornecem um grande ambiente de partilha entre empreendedores, em troca de uma mensalidade bastante competitiva. No caso de ter uma empresa sediada em casa, as incubators They have also been providing support virtuais, de entre os quais o aconselhamento e auxílio na gestão.
In order to know the role of incubators na criação de startups em Portugal, foi elaborado um questionário destinado a estas entidades. Assim, foram consideradas 5 fases: ideation and concept, Company foundation, Corporative identity, product development e market launch. Os dados obtidos deste questionário foram utilizados para colmatar o estudo previamente realizado acerca do tipo de services provided by incubators nas devidas fases possíveis de uma startup.
The following chapter provides a brief summary of the analysis of the results collected, identifying the most relevant information that stood out from this.
In the remaining chapters the universe of study and the method used to obtain data are described, as well as the research tools used, followed by a list of the results obtained.
Finally, we present the conclusions of this investigation by analyzing these data, reinforcing the aspects where a potential improvement is visible.
Why are incubators failing to support startups?
We have analyzed the feedback obtained by the startups and incubators on service needs and the environment of these
Sample search
The study consists of universe incubators certified Portuguese companies spread throughout the various regions of the country. Its identification was made through the page of the National Network of Incubators (RNI).
Thus, the appropriate contacts, telephone and email, from incubators scattered throughout the country. More specifically, 18 from the North region, 7 from the Center region, 9 from the Lisbon Metropolitan area, 4 from the Alentejo region and finally 2 from the Algarve region, following the NUTS attribution (Nomenclature of Territorial Units for Statistical Purposes).
The questionnaire was prepared with the aid of a designated survio software. This is used for creating surveys, questionnaires, forms and online market research for free.
Email was sent containing the questionnaire for incubators as well as made a few phone calls in order to get as many answers as possible.
Of the 40 contacted, 19 incubators contributed their responses to this investigation.
Services provided by incubators
Once the answers obtained in this investigation are analyzed, we elaborate in this chapter a summary of those considered most relevant.
As incubators start the program support to startups at a very early stage. That is, at the stage of ideation and concept. This turns out to be advantageous for them as it is a great way to enter this market by better controlling the risk associated with new innovative companies. Furthermore, They can count on the most diverse type of support of experienced professionals in this field.
On the other hand, these entities tend to provide more aid, not in the initial phase, but in the Company foundation, having obtained a great prominence in relation to the other phases.
At the stage where program of support ends It is mainly the launch of the product on the market. However, a part of the incubators ends earlier, at the stage of product development. Thus, the marketing aspects are the responsibility of the entrepreneurs themselves.
Services in phases
For the principal services in phase ideation and concept, we highlight the creation of a good business and financial plan. In addition, the feasibility/profitability analysis of the product or service also has great weight.
In the phase Company foundation, you services most rendered are obtaining investments and the logistics associated with legalizing the startup. That is, the definition of the legal structure, meeting with the responsible entities and the bureaucracy necessary for this feat.
Since this is a really important phase, the incubators looking entities to establish partnerships with financing capabilities and legal advisory skills. However, the accessibility of these services externally appealed is not the best.
In phase Corporative identity, the corporate identity & design stands out in the light of the various options available. The rest are not as relevant to the incubators, showing a notable difference in the priority of the services to provide.
In phase product development, you support Most services are focused on improving the definition of functionalities, adapting the product to the feedback obtained in the tests, the test itself, and time and team management. Likewise, the incubators seek partners with developmental skills, but the accessibility of these services it's also small.
Finally, the main services do market launch they are the creation of a marketing strategy plan and an action plan. It is well known that the incubators focus more on services initials. With this, let the services a bit more specific, as in the case of continuous optimization of the strategic plan. These entities seek partners with marketing skills however, the accessibility of these services is small. O which can justify the fact that these only be in focus services base.
Discover how The IT Factory can help you improve your services.
results
This section presents the data obtained. Below are listed the main services provided by incubators to startups.
Current status of startups
The first question asked in this questionnaire was about the current entrepreneurial environment. In other words, what is the current status of Portuguese startups.
As incubators they are divided between growth and expansion. First, the entrepreneurial environment in Portugal is no longer new, which implies that support notorious as well as the popularity of this concept.
On the other hand, the entrepreneurial environment in Portugal is already popular, with an increase in the population's interest in this concept as well as in the support given to this.
Origin of the incubator
Most of these incubators emerged through contributions from various entities, such as higher education institutions and municipalities. In order to promote entrepreneurship, they provide various types of services, such as installations up to support more technical in the various areas.
startups selection criteria
Not all startups are accepted in programs provided by incubators. To be selected, they have to meet certain requirements. Next, there are the main criteria for selecting startups.
First, there is the degree of invocation of the idea, selected by 84.2% of the incubators. Furthermore, the potential and sustainability of the business (57.9%), the strategic business areas (52.6%), the profile of entrepreneurs (47.4%) and the creation of new jobs (42.1%) are also relevant.
On the other hand, the financial feasibility of the project, the addition of value to the local economy (both selected by 36.8% of the incubators) and the response to market needs (31.6%) are not such relevant factors.
Finally, it was even mentioned the stage at which the startup is in the “other” field provided in the questionnaire.
rejection criteria for startups
Likewise, there are criteria for startups to be rejected from the programs of the incubators. In order to identify these, the following question was asked.
Here, the lack of coherence in the business plan stands out, selected by 63.2% of the incubators. Similarly, the inconsistency in the financial plan and there being no visible opportunity in the market (both with 47.4%) are also relevant. Finally, there is a lack of the required degree of innovation (36.8%) and poor organizational structure (31.6%).
On the other hand, the non-ideal personality of the entrepreneur (26.3%), the lack of professional skills of the entrepreneur (21.1%) and unconvincing pitch (21.1%) are not so important factors. As well as the weak recognition of the profitability of the business (15.8%) and the lack of a unique sales proposal (10.5%).
In addition, the fact that the startup does not fall within the regulation applied by the incubator in the “other” field provided in the questionnaire.
Phase early support
It was also important to identify the stage where it is more common support be initiated.
Phases of startup, a ideation and concept is when incubators start the support. Here, the entrepreneur has only an idea of what his business would be like. That is, having nothing implemented or even well defined the concept.
Then if it is Company foundation. So, the support it is provided in the bureaucratic aspects for the legalization of the company, identification of the responsible entities and in the fundraising or incentives.
O product development third stage is the most common early support. As the name implies, this is where the business idea is put into practice.
Finally, there is the market launch. So, the support ace startups is provided in the marketing strategies about the product to be marketed.
Phase more support startups
Likewise, the question was raised about the phase where the most support ace startups, providing various resources (time, money, material, among others).
In the answers, the Company foundation (selected by 42.1% of the incubators). Then if it is product development (21.1%) and a ideation and concept (15.8%).
Finally, 10.5% of the incubators selected the market launch and the Corporative identity.
Last phase of support for startups
Finally, the phase where the support ace startups tends to end.
Typically the incubation program of startups selected ends as soon as the business idea is launched on the market since at this stage is to be expected that startups have excellent entrepreneurial skills and are able to have the autonomy to take their product forward.
In addition, it is also common to support after the end product development, passing the market launch for the responsibility of the entrepreneurs.
Services in the ideation phase and concept
After asking more generic questions, more specific questions were asked for each of the phases dealt with in this investigation. These focus essentially on the main services provided by incubators.
In the first phase, the ideation and concept, within the various services the creation of the business plan stands out, selected by 84.2% of the incubators. Then find the creation of the financial plan (68.4%), product feasibility analysis (63.2%) and entrepreneurial education (47.4%).
Finally, still of the main services are the contribution to the definition of concepts, market research and finding partners for the business (which are also selected by 36.8% of the incubators).
On the other hand, the cost and duration estimates (26.3%) and the identification of gaps in the definition of requirements (15.8%) did not reflect great relevance. In addition, the development of the value proposition and product market-fit was also mentioned as one of the support provided at this stage, in the “other” field provided in the questionnaire.
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Services at the company's foundation phase
For a phase Company foundation, the same question was asked in order to identify which are the main services.
Obtaining funds or incentives (79%) and defining the company's legal structure (57.9%) are the main services provided by incubators at this stage.
Next are the identification of entities responsible for the legalization of the company (52.6%), the procedure of bureaucracies associated with its registration (47.4%) and the guarantee of protection of the trademark (36.8%).
With The IT Factory you can balance the level of support services to ensure that all startups' needs are covered. We provide services from the most diverse areas such as brand protection guarantee, among many others.
Services in corporate identity phase
In the phase where a brand and visual management strategy for the company and the product is planned, various types of services.
The definition of corporate identity and design stands out as the main service, being selected by 57.9% of the incubators. Furthermore, the development of the landing page (31.6%) and the elaboration of a styleguide (26.3%) also represent some relevance.
Finally, logo design (21.1%) and business card design (15.8%) do not represent the main services provided by incubators.
With The IT Factory you can balance the level of support services to ensure that all startups' needs are covered. We provide services from the most diverse areas such as the elaboration of a styleguide, definition of the logo and business cards, among many others.
Services in the product development phase
O product development It is one of the most important stages for successful startups. So there are several services provided by incubators at this stage.
Among the various services highlights include the improvement in the definition of functionalities (52.6%) and the adaptation of the product to the feedback obtained in the tests (47.2%). Next is the product test (42.1%), time management (36.8%) and work team (26.3%).
Finally, 21.1% of incubators selected identifying faults in the definition of requirements and product quality assurance as services main.
On the other hand, the gathering of requirements (15.8%), making the product user friendly (10.5%), the preparation of code documentation or in general (5.3%) and the acquisition of professionals (5.3%) were identified as services not so important.
In addition, the personalized follow-up to specific problems that may be presented by the startups as one of support provided at this stage, in the “other” field provided in the questionnaire.
With The IT Factory you can balance the level of support services to ensure that all startups' needs are covered. We have a team of professionals ready to assist in an earlier stage of product/service development such as gathering requirements and their improvement and also in developing web and mobile solutions and assist.
Services at launch on the market
Finally, the main services provided by incubators in phase market launch.
57.9% that incubators selected the creation of the strategic marketing plan and an action plan as the main services at this stage. Next are the attraction and raising effective of customers (52.6%), the achievement of the target audience (47.4%) and the selection of advertising channels (42.1%).
On the other hand, creating a relationship between the type of action and investment, establishing strategies to deal with competition (both with 26.3%), achieving defined objectives and monitoring the results (both with 21.1%) are not so important. Finally, 10.5% of the incubators chosen continuous optimization.
With The IT Factory you can balance the level of support services to ensure that all startups' needs are covered. We have a team of digital marketing professionals ready to set goals, launch the product/service on the market and follow up on the phases following this one, providing monitoring and continuous improvement of the applied strategy.
financial support
Regarding the support the financial startups received, 84.20% of incubators They claim they do not provide this type of support directly. However, these help the startups to obtain proper funding through their networks of contacts, which usually contain a number of potential investors.
As for the remaining incubators (15.80%) declare to make available certain programs, such as acceleration programs, which result in a financial incentive to startups winners.
Actions incubated on startups
When asked if they had some action on startups assisted, 94.74% of incubators claim not to have any kind of action.
On the other hand, 5.26% of incubators They claim to provide financial assistance in exchange for a percentage of the capital of startups, more specifically on an average of 7% of their capital for €70,000.
Level of involvement in startups
Ultimately associated ace startups, was asked about the level of involvement of the incubators in these.
100% that incubators addressed state that are involved in startups supported through counseling. Then there is strategic planning (47.4%) where the long-term goals that the company intends to achieve are defined, as well as its value, vision and mission.
Also, the operational planning (26.3%) also has some relevance. Here, the definition of medium-term objectives for each area and department of the company is given.
On the other hand, tactical planning (15.8%) where methods are defined to be exercised so that the company can reach the defined strategic and tactical objectives and decision-making (10.5%) were the least voted options.
Partnerships with incubators
In order to identify the efforts of the incubators in providing the services necessary, the question was asked about partnerships.
73.7% that incubators seek to establish partnerships with entities for financing purposes. Likewise, entities with development skills in order to help the startups at this stage, public companies and universities (both with 63.2%) are highly sought after.
Furthermore, private companies (57.9%) and entities with marketing and legal advisory skills (both with 47.4%) are also highlighted.
On the other hand, research centers (42.1%), corporate (36.8%), investors and partners with competencies for the ideation and concept (both with 31.6%) are not in such demand.
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Accessibility of external services
As incubators also find it difficult to access the services externally, namely through established partnerships.
The services external to product development have the worst level of accessibility. Next are the financing and legal advisory services.
On the other hand, marketing and ideation and concept they are the services where there is more external accessibility. However, these values are very close and it can be concluded that these services they find themselves in the same difficulty in being obtained and there is not much discrepancy between them.
At The IT Factory you'll easily find all service areas in a single company, without having to resort to any more.
Selection criteria partnerships
In the final analysis are the main criteria that the incubators take into account when seeking entities to establish partnerships.
The quality of services to be provided, their degree of involvement (both with 63.2%) and references (52.6%) are the main criteria. Furthermore, technical skill (42.1%), ethics and values (36.8%) and reliability (31.6%) have their weight.
On the other hand, criteria such as communication (26.3%), the price of service to be contracted (15.8%), production capacity and meeting deadlines (both with 10.5%) are not very relevant.
Finally, the institutional level was also mentioned as one of the criteria to be taken into account, in the “other” field provided in the questionnaire.
Are the services provided by incubators sufficient?
After this analysis, we can conclude that in fact, the incubators have a very positive role for this entrepreneurial environment. With this, there is a great demand for startups to these entities.
The services provided by incubators go far beyond those referred to in this article. These seek ensure that your startups be able to develop, grow and be able to work autonomously once the program ends.
Despite the visible effort by the incubators to provide the best possible support to the startups, the latter still experience several difficulties. With better accessibility in services externally contracted, namely a more direct link between incubators and for example, government institutions in order to more easily obtain investments, certain problems would be significantly alleviated. Also, a more centralized and coherent documentation about the steps to be taken to start a business or even more companies targeted to provide services from product development a startups whose entrepreneurs do not have sufficient skills to do so, would be relevant improvements.
However, the fact that this entrepreneurial environment has become increasingly known and desired by the population makes the support existing ones become better and better. Likewise, new support arise in order to create a culture of entrepreneurship and innovation in Portugal.
In order to fill the gaps in existing support, a new concept was created. The IT Factory launched an innovative concept where you will find the most diverse services of the various areas that startups traverse. We believe that with the best partners we can respond to all the needs of the startups and create a incubator of trust and reference for them.
With the right partnership, you can be number one in the world of incubators.
Find out about the discrepancies between the needs of startups and services of incubators