Incubation
                 in – cu – ba – tion:
                 the act or process of maintaining 
                 something under conditions favorable 
                 for development
                                                  © 2017 IC2 Institute, The University of Texas at Austin                                           2
      Incubation Process
      Admission    Pre-Incubation       Incubation            Acceleration       Graduation
      Admission    Pre-Incubation       Incubation            Acceleration       Graduation
      Admissions
       • Selecting the right crop of companies
      Incubation
       • Training & Workshops: developing curricula for the incubation 
                                                                        Ecosystem
         period                                                         Ecosystem
       • Strategic Support: building out/testing business model
       • Mentors: identifying and engaging mentors
      Graduation
       • Ceremoniously exiting successful companies
                                © 2017 IC2 Institute, The University of Texas at Austin        3
         Emphasis on Incubation
         Admission            Pre-Incubation                 Incubation                         Acceleration                  Graduation
         Admission            Pre-Incubation                 Incubation                         Acceleration                  Graduation
         Traditionally the focus in incubation has been on Training & 
         Mentoring:
                • Working with the companies during the incubation 
                    period to build capacity while supporting them to 
                    better define their model/strategy
                • While letting them out into the market to grow their 
                    business themselves, post incubation/graduation.
                • However…
                                                  © 2017 IC2 Institute, The University of Texas at Austin                                           4
         Cleantech Start-up Challenges
         • High capital requirements
         • Long time to market
         • Larger and earlier risk
                 –Technical
                 –Market
         • Policy/Regulatory risks
         • Other…
                                                  © 2017 IC2 Institute, The University of Texas at Austin                                           5
         Feared Valley of Death
         Traditional approach, led to fewer successful incubatees
         Most cleantech startups go through the lifecycle - incubatees have 
         challenges raising money and eventually shut down and die.  The 
         Chasm, in these cases, ends up as the ’Valley of Death’.
                                                  © 2017 IC2 Institute, The University of Texas at Austin                                           6