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Incubators mainly support new ventures during an earlier search/discovery/exploration stage with the aim to find a repeatable and scaleable business model. Incubators encourage their tenants to engage in quick iterations through trial-and-error and frequent feedback loops from early adopters. Hence, incubators are as test bed for experimentation, assessment and refinement. At the end of the incubation phase the tenant’s prototypes (service or product) have been tested/validated in the market (cp. product-market-fit) and, ideally, the new venture reaches some traction (cp. first users or customers, revenue, etc.). [Source]

Incubators are typically in academic institutions or large companies. They provide office space, access to mentors (usually professors) and connection to investors. There is a discounted price for the infrastructure or payment in terms of shares. The incubation period is in years or at least a year. There may be a seed investment program (money raised from Govt or alumni). An incubator counts a profitable/surviving company as a success. [Source]