Coworks Blog

How coworking and small business incubators can partner for progress

Written by L Walker | Oct 24, 2024

Key features that make coworking spaces ideal for incubators.

 

Some of the most engaged coworking businesses have cracked the code: it's not just about the space — it's about creating an ecosystem where innovation thrives. 

Enter incubator programs, the not so secret weapon that can transform your coworking space from a simple desk rental business into a launchpad for the next big thing.

Startups don't just need a place to park their laptops. They need a springboard that catapults them from "idea in a garage" to "next unicorn." By hosting or developing an incubator program, your coworking space becomes that springboard. These programs provide structured support, mentorship, and resources that help fledgling companies spread their wings and take flight.

But what's in it for you? Plenty, as it turns out.

First off, incubator programs can be a goldmine for your coworking space:

  • Steady revenue stream: Incubator participants typically commit to longer stays, providing stable income
  • Premium pricing potential: The added value of incubation services justifies higher rates
  • Diversified income: Additional revenue from program fees, event hosting, and partnership opportunities

Beyond the financial perks, incubator programs elevate your space's reputation. You're not just renting desks — you're nurturing the next generation of successful businesses. This attracts more startups, creates buzz, and positions your space as a hub of innovation.

When you host or develop an incubator program, magic happens. Your space buzzes with energy as entrepreneurs collaborate, mentors drop by, and investors scout for the next big thing. This vibrancy attracts more members, creating a self-reinforcing cycle of growth and innovation.

The benefits spread like wildfire:

  • Existing members get energized by the entrepreneurial atmosphere
  • Your space becomes a magnet for talent and resources
  • Local businesses and investors take notice, leading to valuable partnerships
  • Success stories from your incubator become powerful marketing tools

At small business incubator Startup Virginia, their mission is centered around nurturing high-growth startups that are set to make significant impacts within the community and beyond. The organization’s commitment to being a community resource for all Virginians underscores its role in enhancing the local innovation ecosystem. 

"Our aim is to not only help startups grow but to build a thriving, supportive community that extends beyond our walls," explained Marketing and Program Manager Morgan Evans, highlighting the organization’s broader goals.

Now let's talk execution. Running a successful incubator program isn't as simple as putting out a sign-up sheet and hoping for the best.

  1. Define your niche: Are you focusing on tech startups? Social enterprises? Green businesses? Having a clear focus helps attract the right participants and mentors.

For example, at New Orlean’s Propeller, Executive Director Andrea Chen has a very specific profile for the companies they select. “The most important thing is to meet people where they're at. For us, we work with social entrepreneurs. That means people have a financial growth goal and also have a social impact goal.”

  1. Build a strong mentor network: The heart of any incubator program is its mentors. Recruit experienced entrepreneurs, industry experts, and investors who can provide valuable guidance.

  2. Structure the program: Create a curriculum that includes workshops, milestone check-ins, and networking events. Balance structure with flexibility to accommodate different startup needs

  3. Forge strategic partnerships: Team up with local business associations and corporate partners. These relationships can provide resources, expertise, and potential customers for your incubator participants. Your local university, college, or community college can also be a partner.

Your incubator program won't sell itself. Here's how to get the word out:

  • Tell stories, not features: Instead of listing program benefits, share success stories of past participants or paint a picture of what's possible.
  • Go where your audience is: Identify where your target startups hang out—online and offline—and make your presence felt there.
  • Host taster events: Organize workshops or pitch nights that give potential participants a flavor of what your program offers.
  • Leverage your network: Get your mentors, partners, and successful alumni to spread the word. Their endorsement carries more weight than any advertising.

As you plan your incubator program, keep these best practices in mind:

Quality over quantity: Don't try to pack your program with too many startups. Focus on selecting and supporting a smaller number of high-potential companies.

Clear expectations: Be upfront about what participants can expect and what's expected of them. This includes time commitments, milestone requirements, and any equity arrangements.

Measure and iterate: Track key metrics like participant growth, funding raised, and program satisfaction. Use this data to continuously improve your offering.

Community integration: Ensure incubator participants mix with your regular coworking members. This cross-pollination benefits everyone.

As Jennifer Jenkins at Temple University iNest explained, "There are three sections in the iNest. First, we have the tech commercialization offices with licensing managers and compliance managers who reach out to inventors to discuss ideas, patent potential, and IP issues. The center section includes our owl-named conference rooms and the forum, a large space used for big events. Finally, the third section is our incubation suite, where tenants can launch their products."

Pull the trigger (but don't shoot yourself in the foot)

Ready to get started? Start small and scale up. Launch a pilot program with a handful of carefully selected startups. Learn from what works and what doesn't, then expand gradually.

Remember, running an incubator program is a marathon, not a sprint. It takes time to build momentum and see results. But with patience, persistence, and the right approach, you can transform your coworking space into a thriving entrepreneurial ecosystem.

Let's talk about who's who in the incubator world. These programs are both space-specific and mobile, and they each have blazed the trail and set the standards for what great startup support looks like:

The heavy hitters

Techstars has become practically synonymous with startup success. They've mastered the art of turning promising ideas into market-ready businesses through intensive mentorship and networking. And Coworks is a Techstars alum! Learn more about orgnaizating a Techstars weekend.

Similarly, the Founder Institute takes pride in being the world's largest pre-seed accelerator, helping entrepreneurs turn their napkin sketches into viable companies.

For the specialists

Not all incubators cast a wide net. Some excel by focusing on specific niches:

  • Zeroto510 is your go-to if you're in the medtech space, helping navigate the tricky waters of medical device regulations
  • FinTech Innovation Lab runs an intensive 12-week program specifically for financial technology startups
  • Alchemist Accelerator has made its name as the go-to program for enterprise-focused startups

The global players

Innovation knows no borders, and neither do these programs:

  • Plug and Play Tech Center operates worldwide, connecting startups with corporations and investors
  • 500 Global (formerly 500 Startups) has its fingers in many pies globally
  • Wayra leverages its connection with Telefónica to support tech entrepreneurs internationally
  • Seedcamp focuses on nurturing European tech startups

The impact makers

Some programs go beyond just business success:

The corporate connectors

Several programs excel at bridging the startup-corporate divide:

  • TechNexus specializes in connecting entrepreneurs with established corporations
  • Highline Beta helps launch startups through corporate partnerships
  • Capital Factory acts as a hub, connecting Texas tech entrepreneurs with investors

What this means for your coworking space

Looking at these successful programs, a few key lessons emerge:

  • Notice how many successful incubators have a specific focus or unique approach? Your program doesn't need to be all things to all startups.
  • Whether it's corporate partnerships like TechNexus or community building like 1 Million Cups, relationships matter more than real estate.
  • Even if you start local, consider how your program might scale or connect globally, like many of these successful incubators have done.
  • The most successful programs offer something distinctive, whether it's industry expertise, corporate connections, or a focus on social impact.

As you get to know an incubator program, think about what you've learned from these established players. What unique value can you offer? What gaps in the market could you fill? Whether the incubator program presents to your membership or moves into your space, you’ll be playing an important role in moving your local business ecosystem forward.