What History Teaches us About Startup Incubators

"Well all these incubators ended up flaming out. Why do I feel that the history will repeat itself!"

I don't think they will all flame out. We don't seem to be. The model is different this time. The old model was practically an adverse selection filter. That's why we've always resisted being called an "incubator." Though frankly we may as well give in to that, because few people now remember the previous generation of them.

The issue is what kind of reputation does the incubator general partners have. Can they pull in the top VC's consistently each and every year? Can they anticipate the sectors and industries venture capital wants to go to?

If all you did in 2000 was internet startups and the bubble burst, of course incubators for internet startups would be wiped out along with the companies. If there was a "housing" centered incubator in the early twenty first century, it would have done well until the bubble burst as well.

It has nothing to do with early stage startup support services (since YC isn't really an incubator), but with everyone in the space putting all their eggs in one basket with internet technologies.