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

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

Three forms separated by commercial mechanics. They share a deeper logic that resets every cohort: fixed duration, equity at entry, selection as the real product.

01

Incubator

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

Equity taken · indexed 0 → 50%

rarely

Incubator funders rarely take equity at entry.

Duration· open
1–5yr
Capital in· funder-side
none / minimal

Funded by non-profits — academic institutions, governments, economic development bodies.

Cadence
open-ended

02

Accelerator

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

Equity taken · indexed 0 → 50%

5–15%

YC anchor: $125k for 7% plus a $375k SAFE.

Duration· cohort-fixed
3–6mo
Capital in· at the door
$50k – $150k

YC anchor — $125k cash plus a $375k SAFE for 7% equity.

Selection rate· application
~1%

Techstars 1.5%; acceptance, not exit.

03

Venture studio

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

Equity taken · indexed 0 → 50%

20–40%+

Deeper involvement; larger initial deployment.

Duration· open / ongoing
ongoing
Capital in· at the door
$500k – $2M+

Deeper involvement; larger initial deployment.

Cadence
portfolio-built