Photo: NYU Incubators
Short accelerator programs abound in New York, but if you're an early stage business in need of more than just a few weeks advice, an incubator might be a better option. Rather than rushing startups through a three month program, NYC incubators give companies time to develop their products in an environment surrounded by mentors and other entrepreneurs. We rounded up some of the top incubators in New York.
NYU-Poly established the first city funded tech incubator space at Varick Street in 2009. They receive funding from the New York City Economic Development Corporation (NYCEDC). There are now three separate incubation spaces: Varick Street, which hosts startups focused on data, cyber security and fintech, NYC ACRE, which houses clean tech and renewable energy businesses and DUMBO, whose members concentrate on digital media, hardware and mobile. The incubators provide startups with administrative support in addition to access to talent, markets, capital, research and resources. Startups get advice from various public organizations like the Manhattan Chamber of Commerce and the Empire State Development Authority.
Although it calls itself a startup studio, Betaworks fits the description of incubator. It provides a space for new businesses to grow over an extended period of time, including mentorship and guidance. Betaworks uses the term studio because it operates a little like a music or movie studio in that it's an umbrella organization that allows the startups it houses to flourish independently. Betaworks offers seed investment to its startups, but it's separate to belonging to the startup studio. Founder John Borthwick started Betaworks in 1999 and checks in with each business quarterly and annually. Some of the most famous startups to come out of betaworks include Giphy, bit.ly and Instapaper.
Expa operates like Betaworks on the startup studio model. It was founded by Garrett Camp, co-founder of Uber and StumbleUpon. In 2014 Naveen Selvadurai, co-founder of Foursquare joined as a partner in NYC and is working with startups in their space in Soho. The latest company to partner with Expa is Drip, a platform for building creative communities. Expa provided the young company with seed investment and is helping Drip build its brand.
Another startup studio, Human Ventures portfolio includes companies across education, financial technology, film, and e-commerce industries. Human Ventures Capital is the VC arm which invests exclusively in Human Ventures companies.
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The massive new IBM Watson Center at 51 Astor Place in the East Village houses an incubator for startups that build apps for IBM Watson. The AI cognitive computer that famously trumped geniuses on Jeopardy works to solve problems in the health sector. IBM has put aside $1 billion for investment in successful startups from the space, and also hosts networking events for the Silicon Alley community. IBM is hoping to grow Watson into all business areas and is actively looking for partners to use the technology.
Value Stream Labs is an incubator for tech companies in the financial services industry. The program helps with product development, business planning and networking within the industry. The incubator concentrates on connecting the Fintech startup community to institutional finance businesses which might not move as fast as the tech world. As a result member companies are given more time to develop than in accelerator programs.
Also funded by NYCEDC, Harlem Garage is a coworking incubator for small businesses and startups in Harlem. The space hosts classes, networking events, meetups, and community events all targeted towards helping member companies grow.
Soho Tech Labs is the in-house incubator for Lerer Ventures and is run by select members of the fund, most of whom are former Huffington Post employees. It co-founds startups with entrepreneurs from day one and provides all the support the company needs in terms of mentorship and VC investment.
Made in NY Media Center is part coworking space, part incubator. The center is aimed at storytellers across a range of industries, from film and TV to design and advertising. The 20,000 sq foot facility in DUMBO houses workspaces, classrooms, exhibition venues and a public cafe. Rather than paying with equity, members pay hard cash for their place in the incubator. For $450 per month, entrepreneurs get a deskspace, mentorship, access to industry networks and the center’s facilities. For an annual fee of $500, you also get access to VIP networking, mentoring and teaching opportunities. The project is a partnership between ‘Made in NY’ and the Independent Filmmaking Project (IFP).
The hatchery has been nurturing tech startups in New York since 2007. It works actively with foreign consulates and government investment arms to attract overseas business to expand to the U.S. The B2B incubator works with companies from inception to exit. It unites entrepreneurs into businesses, finds customers, helps with funding to create B2B startups in data analytics, fintech, media/publishing and security.
To enter this incubator at least one member of the startup must have a connection to Fordham University as an student, alumni or staff member. The program is a collaboration with the Small Business Services of the City of New York and is located at the Fordham Center for Entrepreneurship on campus in the Bronx. Applications are accepted year round on a rolling basis. Successful applicants get an office space, mentoring and help with funding for $300 per month.
Originally just for Pratt Institute alumni, the incubator is now open to all fashion designers, product designers and technologists with business ideas. It changed its name from the Pratt Incubator to an accelerator, but with businesses staying for an average of two to three years and no set graduation date, the program definitely fits the incubator feel. Entrants get their own studio in the 21,000 square foot space located between Bed-Stuy and Williamsburg in Brooklyn. They offer mentoring from Pratt industry experts as well as fellow entrepreneurs. Applications are accepted on a rolling basis with 15 businesses being accepted in each round.
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