The SmartUp Academy positions its Residency Program as fundamentally different from traditional incubators. Instead of a short engagement lasting a few months, the Residency is a long-term process, often spanning 3 to 5 years, reflecting the reality that building a successful company takes time.
Yonatan Stern explains this difference using a medical analogy. Completing a university degree or a foundation course is like finishing medical school: the knowledge exists, but the practitioner is not yet ready to operate independently. Just as doctors must complete a residency under supervision to become professionals, entrepreneurs require long-term, hands-on guidance to apply theory to the unpredictable realities of building a business.
Compared to traditional incubators, the SmartUp Residency differs in several key ways. Its duration continues until the company reaches profitability and fast growth, rather than ending after a predefined timeline. The intensity of support is much higher, with mentors deeply involved in the company’s operations, often acting almost like co-founders. Meetings occur weekly or bi-weekly to address real-time challenges instead of offering only high-level advice. Because this level of involvement requires years of commitment, the program is highly selective and accepts only a small number of companies that align with the methodology of modest investment and profitability.
The goal of the Residency is to help startups navigate the “Terra Incognita” of the market and reach profitability without relying on massive venture capital funding. The program targets modest investment levels, typically $2–5 million rather than $50 million. While the lectures acknowledge Y Combinator as the pinnacle of the traditional incubator model, SmartUp emphasizes that even graduates of prestigious programs can fail if they focus on fundraising instead of building a sustainable, profitable business.
