Networked Incubators: Hothouses of the New Economy

Business incubators are a booming industry. Dubbed “business accelerators,” “campuses,” “econets,” and “Internet keiretsus,” these organizations have become the hot new way to nurture and grow start-ups in the Internet economy. They offer fledgling companies a number of benefits—office space, funding, and basic services such as recruiting, accounting, and legal—usually in exchange for equity stakes. Among the more famous and prolific incubators are Hotbank, CMGI, Internet Capital Group, and Idealab!.