Incubator
& Bubble

By: Calvin Chin

Crains New York Business published an article about incubators fueling our local tech economy. Given our stagnant local and national economy, one should not criticize entities that try to support new companies in the name of job and wealth creation BUT can anyone who follows entrepreneurship keep up with the proliferating number of incubators or accelerators in NYC? NYC has always been a stepchild to Silicon Valley or even Waltham Road in terms of starting new ventures.  Still, when it seems all it takes is some $$ and rolodex to open an incubator then what are their differentiating factors? Why should entrepreneurs sign away meaningful ownership percentages to these incubators? Are incubators filling a gap in the early stage investment cycle that cash flush venture capitalists have vacated? Time will tell if this is a bubble or reasonable supply to meet demand.