I / VI · The orthodox map · cohort-financing ecosystem · May 2026

The cleanest contemporary articulation distinguishes three forms, with hybrid models proliferating between them.

The three forms differ on commercial mechanics — equity taken, duration, capital in, selection rate — not on what they call themselves. Hybrids proliferate in the spaces between.

01

Incubator

Early-phase startup, pre-business model. Funded by non-profits — academic institutions, governments, economic development organisations. Rarely takes equity.

Equity taken
rarely
Duration
1–5 yr
Capital in
none / minimal
Cadence
open-ended

02

Accelerator

Cohort-based, fixed-duration. Ends with demo day. Capital on the table in exchange for equity.

Equity taken
5–15%
Duration
3–6 mo
Capital in
$50k–$150k
Selection rate
~1% YC · 1.5% Techstars

03

Venture studio

Creates a series of startups from the ground up. Deeper involvement. Larger initial investment.

Equity taken
20–40%+
Duration
open / ongoing
Capital in
$500k–$2M+
Cadence
portfolio-built