Networked incubators are not for everyone. For example, corporate managers who are used to receiving guaranteed business from other divisions within the same company may quickly become dissatisfied when they discover the free-market dynamics inside a networked incubator. And entrepreneurs who prefer doing everything themselves might easily become frustrated in an organization that expects networking. Furthermore, a start-up in a business that doesn't favor speed of execution may have no need for a networked incubator. And neither might an entrepreneur who already has strong personal connections to the right industry players.

But if you are an entrepreneur whose start-up could thrive in a networked incubator, finding the right one might be the most important thing you do. The goal is to obtain sufficient benefits-particularly those obtained from networking-to justify relinquishing an equity stake that typically ranges from 25% to 50%. Looking at the track record and reputation of a prospective incubator and its execs will help you determine whether the organization is being managed by experienced pros. If it is, you should also ask several questions to gauge whether the incubator wil provide the necessary networking advantages for your start-up.

1. Are the companies in the incubator's porfolio related to one another either by industry or by technology, and is that focus consistent with yours?

2. How strong is the porfolio of companies, strategic partners, and external advisers? Specifically, does the incubator have any stars-a popular portal or a top-three company in a market-that could help your business?

3. How exactly do the companies network with one another? Does the incubator have organized mechanisms in place to facilitate cooperation, or does networking mainly depend on personal connections? What are concrete examples of how the incubator helped a start-up gain critical resources quickly?
4. What relationships exist with outside strategic partners, and how much access to them will you have? What are concrete examples of how member compaines leveraged those relationships to gain competitive advantage?