Manhattan isn’t just a global financial hub; it’s also the borough for all things innovation and entrepreneurship. New startups emerge in Manhattan daily, and some of them end up succeeding largely thanks to the support they receive from startup incubators and accelerators. Let’s explore what those are and how they help both individual startups and Manhattan’s business world as a whole.
Startup Incubators vs Accelerators
Incubators
Startup incubators support early-stage startups through their initial development phases. They help startup owners refine their business ideas and build a solid, data-backed foundation.
Incubators are typically long-term (six months up to a few years), and they provide startups with resources and continuous support in the form of office space, administrative support, mentorship, and access to a network of industry experts.
Most incubators have a non-equity model. They don’t take equity in the startups they support but may charge a fee or operate through sponsorships or partnerships.
Accelerators
In contrast, accelerators are mostly for startups that are already at least somewhat successful and have high growth potential.
They guide startups that are currently scaling and help them find solutions for the challenges that arise. For example, when startups are rapidly growing and can no longer meet their customer service needs internally, they may be directed to outsourcing companies akin to SupportYourApp for competent help.
Accelerators’ support is more intensive than incubators’, but it’s shorter-term — they typically run for only a few months and have a structured curriculum with mentorship, workshops, and networking events.
At the end of most accelerator programs, startups are expected to present their business to a group of investors to, hopefully, receive funding and form partnerships.
In exchange for their support, accelerators often take a small equity stake in startups.
Key Startup Incubators and Accelerators in Manhattan
Techstars NYC
Techstars is one of the most prestigious accelerator programs in the world, and it has a strong presence in Manhattan. It has a rigorous selection process, so getting under Techstars’ wing isn’t easy. It’s worth it, though — numerous successful startups are Techstars’ alumni, such as ClassPass and Plated.
Duration: 13 weeks
Funding: $120,000 in exchange for 6% equity
Notable alumni: ClassPass, DigitalOcean, SendGrid
ERA (Entrepreneurs Roundtable Accelerator)
Unlike most accelerators, ERA works with early-stage startups. ERA is known for its hands-on approach and preference for tech projects. Similarly to Techstars, ERA has quite a few success stories on its track record. They include TripleLift (a native advertising platform that has raised over $16 million in funding) and Tinybop — an educational app developer with millions of downloads worldwide.
Duration: four months
Funding: $150,000 in exchange for 6% equity
Notable alumni: TripleLift, Tinybop, Parcel
Grand Central Tech (GCT)
GCT is a unique accelerator, at least in the Manhattan business landscape. It doesn’t provide any funding, but it also has a zero-equity model, so it makes sense. Instead, GCT gives startups free office space and access to a wide network of mentors and investors. It’s located near Grand Central Terminal (hence the name), and the prime location is part of the appeal.
Duration: one year
Funding: no funding
Notable alumni: Latch, Spring Health, Nanotronics
WeWork Labs
WeWork Labs is the only incubator for early-stage startups on this list. It’s part of the co-working giant WeWork, which has multiple locations across Manhattan. Although the program doesn’t provide any funding, startups get access to a flexible workspace and a global network of entrepreneurs and mentors.
Duration: flexible; depends on startup needs
Funding: no direct funding, but access to WeWork’s global network of investors
Notable alumni: Perch Interactive, Ollie Pets, The Wing
How Startup Innovators and Accelerators Affect Manhattan’s Business Landscape
Startup incubators and innovators are contributing to Manhattan’s economic growth. Startups lucky enough to be part of these programs often go on to secure substantial venture capital funding, scale their operations, and create numerous jobs. In turn, innovation boosts the local economy and helps Manhattan sustain its reputation as a global business hub.
Also, the startups that emerge from Manhattan’s incubators and accelerators promote innovation. Many of them develop cutting-edge technologies and disrupt traditional industries — from fintech to health tech to artificial intelligence and beyond. They’re driving change and setting new standards across sectors.
Finally, Manhattan’s startup ecosystem fosters a sense of community and collaboration. Incubators and accelerators become the platforms where entrepreneurs connect, share ideas, and collaborate on projects. This helps individual startups grow and strengthens the overall ecosystem — so it’s a win-win for everyone involved.
