Business Incubator Insights

The Counter-Intuitive Nature of Picking Winning Startups Doing a startup is monumentally hard, but you know what else is hard? Picking the future winners... Analyzing data from our accelerator’s alumni has brought some insightful and seemingly contradictory observations to light. Writing first checks is tough. The main lesson I've learned? You gotta get to know what the founders are like truly, because there’s just not enough data on paper to make the “perfect assessment.” So here we go: 1) Startups that either shut down or are now hard-stuck Strength 💪 • Subject Matter Expertise Weaknesses ⚠️ • No Technical Founder • Uncoachable • Low Tempo Here's the insight gleaned: 41% of the teams had high subject matter expertise. Among these, 76% successfully launched a beta version, and 20% secured some funding. However, their tempo was notably low, probably due to the absence of technical founders. Main lesson learned: I over-indexed on expertise at the expense of being able to build something, and a co-founder who can build is crucial for idea-stage momentum.   2) Recent grads on the high potential list Strengths 💪 • Coachable • High Tempo • Done hard things before Weaknesses ⚠️ • No Technical Founder • No Customer Leverage • Weak MVP Now here’s an interesting insight. The promising startups still largely lack a technical co-founder, yet they operate at high tempo, so not having a technical co-founder doesn’t spell death! These startups are getting funding, partnerships, and conducting pilots or have betas running. So, what sets this group apart from the previous one? Two key things: they aren’t strangers to doing hard things, and they are coachable. Main insight: The right mindset + being able to learn fast + moving fast without “permission” helps startups overcome the lack of a core skill on their early team. 3) Finally, startups crushing it now but how they looked in our program Strengths 💪 • High Tempo • Done hard things before • Foundational Moat Weaknesses ⚠️ • Saturated Market • No Customer Leverage • Uncoachable • Unclear Revenue So here’s where things get flipped again… 80% of these founders weren’t coachable, but they had a foundational moat when they came in. And they weren’t strangers to doing hard things. Being high tempo, they got through business model and access gaps despite being uncoachable. They’ve all gone on to raise millions in funding, get pilots, build strong products, generate revenue, secure partnerships, and grow their teams. Key insight: Moats really matter. It trumps coachability ---- So, what do we look for now in our accelerator? High Tempo + Done hard things before + Technical Co-founder + Moat Markers And for our incubator? We push them to find co-founders, keep momentum, and build defensibility and leverage. P.S. Solving a real problem is a given P.P.S. Not being an asshole is a given P.P.P.S Just kidding, that's it folks!

Not everything “new” belongs in the Incubation Zone. Just because a project uses AI or partners with a fintech doesn’t make it disruptive. It might be an enhancement to core operations. And that’s fine! But it belongs in the Performance Zone or Productivity Zone, not Incubation. So what does belong in the Incubation Zone? Incubation Zone projects should: 🧪 Explore new markets, customer segments, or business models. 🧪 Lack a clear path to ROI. The Incubation Zone by design is about testing assumptions. 🧪 Feel risky, ambiguous, maybe even uncomfortable. 🧪 Require new capabilities, not just better execution of existing ones. Examples we’ve seen across Alloy Labs members that have scaled to become full offerings: 🔥 Bank expanding the services they provide to seniors through Carefull. 🔥 Piloting Paige legacy planning system but targeting new parents rather than the older generation. 🔥 Offering Eko's investment services as a supplement to traditional wealth management. Here’s the hard part: management discipline. It’s easy to backslide. Recession concerns or a bad quarter makes tempting to shift innovation teams toward optimizing existing products, measuring progress in dollars instead of learning, or worse, killing ideas too early because they don’t fit the current P&L. 💡 Staying disciplined requires: 1. A separate funding model insulated from quarterly pressures. 2. Leadership buy-in that understands the goal is discovery, not delivery. 3. A regular review cadence that focuses on validated insights, not revenue. 4. Pressure from the top to keep middle-management from saying "no" because they'd rather avoid failure than risk success You don't build the future by polishing the past. The Incubation Zone is where you go to challenge your assumptions, not reinforce them. We built The Concept Lab as a shared Incubation Zone for our members. It reduces the risk, costs, and time to incubate and accelerates the time to value from these new ideas.

Startup growth is a marathon - no matter how much founders would like to sprint. If you’re a life sciences founder joining Innosphere Ventures’ incubator, here’s something to keep in mind: Your progress might not look like everyone else’s in your cohort, and that’s completely normal. The speed of your growth depends on a lot of factors - like your industry or how much time you can dedicate to your startup. For instance, founders juggling a full-time job outside their startup often don’t move as fast. And in life sciences, investor expectations and product timelines can add layers of complexity that ultimately slow down progress. While most founders are solid on their product, there are many more big hurdles to tackle: we measure 35+ other elements to achieve investor readiness, many of which are unfamiliar to founders entering the program. These steps - ranging from strategic planning to valuation - can feel alien to academic or expert founders who are deeply immersed in their field but new to the startup landscape. When those founders join our incubator, they might only progress half a stage in our 8-stage investor readiness framework during their entire time with us. This might not seem like much, but in the context of the entire startup journey, it’s a huge step in the right direction. After all, a half-step forward in six to nine months is incredible progress in what’s often a 10-year journey. Founders, remember: Your progress is your own, and it’s a reflection of the work you’re putting in - not just today, but for the future of your company.

Incubation and innovation… What if the biggest barrier to your success wasn’t your idea... but your ecosystem? In my latest newsletter, inspired by my recent Unlocking Africa Podcast interview with Boubacar Demba Coly, I break down the 5 key lessons from Gambia Tech Project's incredible journey, helping young entrepreneurs bridge the gap between challenges and opportunities. Here’s a preview: 1️⃣ Strategic Partnerships Are Key to Success 💡 You can’t build an ecosystem alone. Collaborate with key players—governments, global organisations, and local communities. 2️⃣ Market Access is More Important Than Just Having a Great Product 💡 Without a strong value chain, even the best ideas struggle. Build distribution and visibility from day one. 3️⃣ Financial Literacy is a Non-Negotiable Skill 💡 Banks may not back startups, but mastering financial planning, alternative funding, and investment readiness is a game-changer. 4️⃣ A Strong Collaborative Entrepreneurial Community Fuels Growth 💡 Successful founders don’t go solo. Build networks, support others, and tap into peer mentorship for accelerated success. 5️⃣ Resilience Separates Winners from the Rest 💡 Out of 500+ applicants, only 10 startups make it through Gambia Tech’s program. The difference? Consistency, commitment, and execution. These insights are just the beginning. Want the full insights from our conversation? 📩 Read the full blog & subscribe by clicking the link in the comments below! #Entrepreneurship #Innovation #StartupSuccess #GambiaTech #EcosystemBuilding