A startups guide to coworking, incubators or accelerators

As a UK startup, you’re going to need all the support you can get to survive, thrive and grow during those challenging early years. You’ll also need somewhere to base your new business, and office space can be prohibitively expensive.

In this guide, we’ll be comparing three popular options for UK startups - coworking spaces, incubators and accelerators. We’ll look at what each is and who it's best for, along with the pros and cons to bear in mind.

We’ll also touch on a startup friendly way to manage business finances in these early days - with a Wise Business account.

💡 Learn more about Wise Business

Coworking space vs. startup incubator vs. accelerator - which is best?

To help you work out which option is best for your startup, let’s run through a quick comparison:

Coworking spaces

Best for: Freelancers, remote teams and startups working on early minimum viable product (MVP) development, in any industry.

Coworking spaces are very simple in their concept and setup. They’re simply shared office spaces which come with monthly fees and a number of useful facilities and amenities.

Many of these communal working spaces have meeting and conference rooms, as well as breakout spaces and kitchen facilities. A really handy benefit is access to an official mailing address, an essential for establishing a credible business - but which is hard to get without leasing office space.

Another advantage is flexibility, as you’re not tied into an expensive lease agreement and can come and go as you please.

Coworking spaces tend to be modern, welcoming and with a great sense of community. This leads to organic networking opportunities, especially if you choose a space popular with other founders and freelancers working within your niche. Some are even connected to schemes for mentorship, networking and funding.

There are nearly 4,000 coworking spaces across the UK,² so availability shouldn’t be a problem.

Pros of coworking spaces

• Flexibility- you pay monthly and aren’t tied into a fixed term contract
• Organic networking opportunities - you may find new employees, partnership opportunities or the chance to tap into freelancer skills you need
• Affordability - coworking spaces can be much cheaper than leasing office space, especially as you only pay for the space you need.
• Credibility boost - you can present a more professional image, meeting clients in a conference room rather than a coffee shop, as well as having access to an official mailing address.

Cons of coworking spaces

• No formal access to mentorship or funding - although some coworking space may have indirect connections to startup support schemes
• Distractions and noise - which could affect productivity
• Lack of privacy - this can make it difficult to have private conversations, handle sensitive information or keep valuable intellectual property under wraps (especially if your competitors are working in the same space).

Startup incubators

Best for: Pre-revenue, early-stage startups looking to develop ideas and prototypes

A startup incubator is a specialist program or hub designed to support startup businesses in their earliest stages of development.

One of the main aims of an incubator is to help startups develop products and services into prototypes and MVPs. They also help to develop the business model, so that startups can grow beyond the ideation stage into a fully viable business.

Incubators focus on providing mentorship, advice and support rather than funding, although some do provide access to funding opportunities. Many provide coworking spaces, with a full range of facilities and access to networking events.

Many incubators are free to access, while some ask for an equity stake in the business.

Access to them is highly competitive - there are only around 700 startup incubators and accelerators in the UK,³ and around 850,000 new businesses registered with Companies House in 2024.⁴

To pass the rigorous application process, you’ll need to demonstrate high growth potential, innovative ideas, a solid business model and a dedicated team. Some of the most in-demand incubators in the UK include Founders Factory (which acts as both an incubator and an accelerator), CodeBase Edinburgh and university-affiliated programs such as the Imperial Enterprise Lab at Imperial College London.

Pros of incubators

• Access to valuable mentorship, guidance and support to develop your business idea
• Help with business planning, go-to-market strategies and idea validation from experienced entrepreneurs and business advisors
• Long-term support lasting from months to years, with the freedom to develop at your own pace
• Increased business survival rate - startups which go through an incubator program have an 87% survival rate after 5 years (compared to 44% for non-incubated businesses).⁵

Cons

• Highly competitive - you’ll need to put in the work to stand a chance of winning a place
• Some incubators require an equity stake in the business
• Time commitment - many incubators require attendance at mandatory events, across a long program. This can be hard to manage while also focusing on core startup work.

Accelerators

Best for: Startups with a MVP and traction, who are looking for funding to scale up.

An accelerator is a program designed to help startups scale up quickly. They’re designed for startups which already have a viable product or some early momentum, who are looking for a funding boost in order to scale.

There’s usually a particular goal - such as launching a product, attracting major investment or expanding the company. However, startups participating in these programs often enjoy other benefits, such as making connections or cementing partnerships.

Accelerator programs tend to be short and intense, running from between 3 and 6 months. They usually provide seed funding and access to investors, along with other resources, in exchange for an equity stake in the business. This is usually around 5 to 10%.¹

Unlike with incubators, accelerators are often high-pressure, milestone-driven environments. They also have a highly competitive application process, with only limited spots available and a large number of applicants.

Some of the most in-demand accelerators in the UK include Techstars London Accelerator, Y Combinator, Seedcamp and Entrepreneur First (EF), all of which are based in London.

Pros of accelerators

• Access to seed funding and investment, which is often essential for startups needing to take the next big step
• Networking opportunities with potential investors, customers, partners and mentors, as well as other founders
• Rapid growth and the chance to achieve major milestones (such as product launch or market entry) that you may not be able to achieve otherwise.
• Credibility and validation - even being accepted into a reputable accelerator program demonstrates your startup’s growth potential, traction and strong team. This can make it easier to secure future investment.

Cons of accelerators

• Equity dilution - you’ll need to give up around 5 to 10% of equity¹ in the business, which can be a deal-breaker for some startups
• The intense, fast-paced, high-pressure environment can be overwhelming for some founders. It can be hard to meet growth targets or other milestones in such a compressed timeframe, and burnout or compromised product quality can be the result.
• Time commitment - participating in an accelerator is time consuming, with mandatory attendance for workshops, meetings, events and pitching.

Grow your company and go global with Wise Business

While you’re focusing on getting the right setup for your startup, it’s also worth making sure you’re set up with the right business account.

Open a Wise Business account and you can hold and exchange at once.

You can send fast, secure payments to , and get account details to get paid in as if you were a local business.

Whenever you need to send, spend or exchange foreign currencies, you’ll benefit from the mid-market exchange rate, with low, transparent fees.

You’ll also benefit from all of these features with Wise Business:

• No ongoing fees, minimum balance requirements or foreign transaction fees
• Debit and expense cards for you and your team, which you can use in
• Multi-user access for team members, with ways to control and manage permissions
• Pay up to 1,000 people at once with the Wise batch payments feature
• Integrate with your favourite cloud accounting solutions
• Use the powerful Wise API for automation and streamlining workflow
• Take advantage of Wise Interest to make your funds work harder when you’re not using them (capital at risk).

Disclaimer: The UK Wise Business pricing structure is changing with effect from 26/11/2025 date. Receiving money, direct debits and getting paid features are not available with the Essential Plan which you can open for free. Pay a one-time set up fee of £50 to unlock Advanced features including account details to receive payments in 22+ currencies or 8+ currencies for non-swift payments. You’ll also get access to our invoice generating tool, payment links, QuickPay QR codes and the ability to set up direct debits all within one account. Please check our website for the latest pricing information.

With a truly global account, you’ll be all set to grow your business worldwide.

sources used:

Sources last checked 09-Oct-2025