Accelerator vs. Incubator: Which is Right for Your Healthcare Startup?

When it comes to growing your healthcare startup, choosing between an accelerator and an incubator can be just as critical as the product or service you're building. The right program can provide mentorship, networking opportunities, and even funding. Although the terms "startup accelerator" and "startup incubator" are often used interchangeably, they actually refer to distinct types of programs with different goals, structures, and timelines.

Knowing which program fits your venture’s stage of life and best supports its long-term growth can save time, conserve resources, and reduce regulatory risk.

Whether or not to participate in an accelerator or incubator is a decision every healthcare founder must make for themselves. To help guide that choice, here are four key factors to consider before moving forward.

4 Factors to Consider Before Choosing an Accelerator or Incubator

1. Program Structure and Focus

A big differentiator between startup accelerators and incubators comes down to structure. Incubators are often a good fit for early-stage companies seeking a nurturing, supportive environment where they can validate ideas and start building their foundation.

According to CBRE’s 2025 U.S. Life Sciences Incubator Survey, ownership of incubators is diverse: about 44 percent are independently or privately run, 22 percent are backed by government or economic development organizations, and 11 percent are supported by universities.

Incubators are typically known for providing office and lab space, but many also include access to core laboratory facilities that give startups shared resources and specialized equipment.

Equity is not usually part of the incubator model, but it’s common in accelerators, where startups typically give up a percentage of ownership (equity) in exchange for mentorship, industry insights, and funding.

While the environment in an accelerator can still be collaborative, the stakes are higher. Beyond the investment potential, accelerators bring founders face-to-face with mentors and provide direct access to investors. Incubators also emphasize mentorship, but the focus is on building a strong foundation rather than pushing for rapid growth and early-stage investment.

Many also specialize by subsector. CBRE found that 83 percent host medical device or MedTech startups, 67 percent work with pharmaceutical companies, and 50 percent accommodate AI-related ventures, while others remain open to all disciplines.

2. Stage of Your Startup

Both accelerators and incubators play vital roles in the early-stage startup scene. They can influence whether or not founders take part, according to Lindsey Mignano, an attorney at SSM Law PC who focuses on venture financing, tech business formation, M&A, and commercial and tech law.

"Startups typically benefit most from incubators when they are initially forming their companies and validating their business propositions," she explained.

At this stage, founders usually have pre-seed or seed funding and are getting clear on market dynamics, identifying the proportion of the market they aim to capture, and assessing how competitive their product is compared to others on the market.

Mignano later explained that accelerators are better suited for startups that have already done the foregoing legwork and are ready to deploy and scale their product, service, or product with the help of venture capital financing.

That path, however, is highly selective. MicroVentures reported that SOSV’s IndieBio, a life sciences-focused accelerator accepts less than 5 percent of applicants across their programs. According to the California Health Care Foundation, factors like team, product, market fit, and growth potential are key considerations when reviewing healthcare accelerator applications.

Mignano emphasized that the decision ultimately depends on where a startup is in its lifecycle. For example, some may benefit most from the structure of an incubator, while others are better positioned for the pace and funding of an accelerator.

3. Time Commitment

While every accelerator and incubator is different, there are specific timelines healthcare founders should be aware of before applying to join one.

In most cases, accelerators typically run for three to six months and focus on rapid scaling. According to Mignano, true startup accelerators often have a fixed timeframe for early-stage startups to participate, and you must "get in" to be a cohort member.

In contrast, incubators also support early-stage startups but offer more flexible timelines and entry requirements. These looser timelines can be especially appealing to healthcare founders, who benefit from the stability of an environment that allows solutions to develop without the pressure typical of accelerators.

For context, some regulatory approvals, such as HIPAA systems and IRB-approved trials may take up to 12 to 24 months. In fact, CBRE found that most healthcare startups remain in incubator facilities for at least two years to fully determine their viability.

4. Funding and Equity

Because many accelerators offer seed-stage financing and culminate their programs with pitch nights that enable startups to showcase their software, platform, or product to venture investors, they can be highly beneficial for early-stage startups seeking to scale.

Mignano explained that there is usually a concurrent seed-stage venture investment by the accelerator's fund. "At the end of the fixed timeframe for the cohort participation, there's usually some sort of demo day or pitch competition where other VCs and startups attend," she noted.

While any funding can be valuable, startups should carefully consider their options. Accelerator investments are often relatively modest, sometimes under $100,000, so additional sources of capital are usually necessary.

For incubators, Mignano explained that there is not always a corresponding venture fund that invests in these early-stage startups. "There may be a pitch or demo opportunity, but it's not always required for an incubator to provide this sort of benefit to its participants," she added.

When incubators do offer funding, it can be an important motivator for founders just starting out. For Ali Chappell, PhD, RD, Co-Founder and CEO of Lilli Health, that initial draw quickly gave way to other benefits. She has taken part in two different incubators to date and each influenced her journey in different ways. The first helped her navigate the basics of launching a company, including forming an LLC, and handling paperwork that was new territory for her as a founder.

The second, a program by the National Science Foundation, guided her transition from clinical researcher to CEO. “As a clinical researcher, it was an amazing program that really helped me come into this role and understand how I was going to make this a business,” she explained.

Beyond Accelerators and Incubators: Other Support Options

Accelerators and incubators offer many benefits for healthcare startups, from access to mentorship to potential investment. Yet, they won't be a perfect fit for every startup.

Mignano encouraged founders to explore opportunities that may not get as much attention but can be very helpful in their journey. Startup studios or venture builders, for example, are dilutive but can provide operational support. Online communities and founder networks are additional resources to tap into, as they offer education without formal programs or investment.

Finally, Mignano suggested considering pitch competitions or other "support resources from academic institutions, especially for startups that are student- or alumni-led or research-based to some degree."