Once the venture has reached a certain level of maturity a limited company is incorporated. The venture may choose to exit the incubator or remain as a ‘Mode 2’ venture and continue to enjoy the benefit of the Startup Incubator services for a modest monthly cash fee.
In Mode 2 a company is created thus allowing the venture to assume its own responsibilities as a legal entity. This will require incorporation but also insurance, accounts, and formal company returns to Companies House, employer’s duties and similar obligations. At this stage the venture is a fully fledged business but continues to benefit from the support services provided by the incubator.