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What happened
Startup incubators at IIT Bombay are exploring new financial models by becoming equity investors in the startups they support. This shift aims to enhance their financial sustainability while supporting entrepreneurial growth.
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Key insights
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Incubators Shift to Equity Model
Startup incubators are moving towards adopting an equity model, which allows them to take a stake in the companies they nurture. This approach aligns their success with that of the startups, potentially leading to better outcomes.
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Financial Sustainability Through Investments
By investing in startups, incubators aim to create a self-sustaining financial model. The returns from successful startups can fund future incubations and reduce reliance on grants and donations.
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Potential Risks and Rewards
While the equity model can lead to significant financial gains, it also carries risks. Incubators must carefully select startups with high growth potential to maximize returns on investment.