Incubators (sometimes also referred to as accelerators) such as Y-Combinator
(profiled in Chapter 1’s Insight on Business case) typically provide a small amount of
funding, but more importantly, also provide an array of services to start-up companies
that they select to participate in their programs, such as business, technical, and
marketing assistance, as well as introductions to other sources of capital. Well-known
incubator programs include TechStars, DreamIt Ventures, and Capital Factory.
Obtaining a loan from a commercial bank is often difficult for a start-up company
without much revenue, but it may be worthwhile to investigate programs offered
by the U.S. Small Business Administration, and its state or local equivalents. The
advantage of obtaining capital in the form of a loan (debt) is that, although it must be
repaid, it does not require an entrepreneur to give up any ownership of the company