Getting a startup off the ground is hard work, but incubators and accelerators are there to help. They provide early-stage companies with essential resources such as a workspace, mentorship, and often times funding to give them a fighting chance. More and more startups are popping up in the Twin Cities, and right along with them are more accelerators and incubators to help them find success.
Accelerators and incubators are similar, but not interchangeable. While incubators offer ongoing support, coaching and connections – operating like a co-working space with benefits – accelerators tend to be structured programs for a certain length of time.
Hence the names, incubators tend to focus on innovation, or “incubating” ideas, while accelerators focus on scaling a business, or “accelerating” it. Another difference is the application process. Accelerators almost always have an application process, while sometimes incubators only work with companies they connect with via trusted partners.
A typical incubator generally includes a co-working space with a month-to-month lease option, mentorship programs, and connections to the surrounding community. Typical accelerators include small seed investments for companies chosen to participate and access to a network of mentors, usually in exchange for a small amount of equity.
Listed below is the current array of accelerators and incubators in Minnesota, complete with location, target audience and program length.
INCUBATORS
University Enterprise Laboratories
- Location: St. Paul
- More information: University Enterprise Laboratories describes themselves as a “collaborative innovation community,” focusing on the relationship between the Twin Cities region’s universities and colleges and innovation in the tech world. Founding sponsors include the University of Minnesota and Ecolab. UEL offers networking, shared facilities such as high-end laboratories and a conference center, and targeted programming for early-stage technology companies.
- Location: Minneapolis
- More information: Treehouse Health focuses on helping startups in the healthcare field. Resources for accepted portfolio companies range from exposure to industry leaders and office space to guaranteed modest investment. Requirements include revenue, a management team, a clear understanding of the market and recognition from one (or more) of Treehouse Health’s anchor tenants. Current portfolio companies include Stemonix and Reemo Health.
Mayo Clinic Business Accelerator
- Location: Rochester
- More information: Founded by the City of Rochester and Mayo Clinic Ventures, Mayo Clinic Business Accelerator is advertised as an accelerator but operates more like an incubator. Providing over 2,000 square feet of workspace for tenants, it combines entrepreneurs with investors and advisors. Current rent is $500/month for an office and $100/month for a shared workspace.
- Location: St. Paul
- More information: Lunar Startups is a new incubator officially launching in September that focuses on marginalized entrepreneurs. Housed in Osborn370, Lunar will provide workspace, mentorship, and media coverage for five to seven startups at $100/month per team member. It does not take equity in companies, but requires that startups have a product or service developed or in development, and show revenue.
- Location: Minneapolis, MN
- More information: Local nonprofit Beta.MN and co-working company WeWork have recently collaborated to create Beta/Space. The program provides free workspace in WeWork’s downtown Minneapolis location at Capella Tower for approximately 20 entrepreneurs for six months, rotating out for new groups.
- Location: Red Wing, MN
- More information: A non-profit founded by the Red Wing community in 2013, Red Wing Ignite provides events, programs, resources, and regional and national networks for startups in the area. It is part of the larger organization US Ignite, which was founded by the National Science Foundation and the White House. Co-working spaces start at $50/month and private offices at $300/month. While Red Wing Ignite acts primarily as an incubator, they also offer a business accelerator for early-stage companies.
ACCELERATORS
Techstars + Target Retail Accelerator
- Location: Minneapolis, MN
- Length: 3 months
- More information: In partnership with Target, Techstars Retail is one of Techstars many industry-specific programs. Hosted in Minneapolis, the accelerator selects ten companies related to retail to work with Techstars mentors and within Target. This year, the program starts on July 16 and demo day takes place October 10.
- Location: Minneapolis/St. Paul, MN
- Length: 3 months
- More information: Partnered with Cargill and Ecolab, this is Techstars first program focused on the tech and digital aspects of food and agriculture. Ranging from food safety to manufacturing, this program provides mentorship and industry connections within the Techstars network for companies anywhere on the food value chain. This year, the program starts on July 16, with demo day taking place October 8.
- Location: Madison, Milwaukee, and Minnesota
- Length: 12 weeks
- More information: Investing in high-growth startups, gener8tor invests $90,000 in each of five startups teach summer. It is a nationally-ranked startup accelerator and a member of the Global Accelerator Network. Requirements include complete teams and a full-time commitment for the 12 weeks. Gener8tor works with a wide range of companies, from software to e-commerce, in a wide range of stages, from post-concept to profitable.
- Location: Minneapolis, MN
- Length: Three months
- More information: Bunker Labs Minneapolis is the local chapter of a national organization that aims to educate and connect veterans interested in entrepreneurship.
- Location: Minneapolis, MN
- Length: 6 months
- More information: Cleantech Open is the largest, oldest cleantech accelerator program with a focus on solving energy and environmental issues. Cleantech Open Midwest encompasses 13 states in the midwest region in the U.S., and has offered over $6 million in cash and services to startups since 2005. Requirements include involvement in energy-related technology and at least two team members. This year, Cleantech selected 10 teams for the Midwest region.
- Location: Minneapolis/St. Paul, MN
- Length: 6 weeks
- More information: Accel.MN is a free “pre-accelerator” program for entrepreneurs preparing for a traditional accelerator. With a flipped classroom model, each cohort of 20 members participates in six modules - once a week for three hours each. The only requirement is that participants attend all sessions.
- Location: Minneapolis, MN
- Length: 7 weeks
- More information: gBETA is a free accelerator program created by gener8tor. It includes a formal relationship with 2-3 mentors, access to the gener8tor network and perks from vendors like Microsoft and Amazon. The fall 2018 program runs from September 27 to November 14 and is capped at five teams. No fees or equity required.
- Location: Minneapolis, MN
- Length: 7 weeks
- More information: Created by gener8tor in partnership with Boston Scientific, Mayo Clinic and the University of Minnesota, gBETA Medtech is an accelerator for early-stage medical-technologies. Like the original gBETA program, gBETA Medtech lasts seven weeks and is free for companies to participate in.
