They are mostly non-profit entities that provide value added advisory,
informational and certain support infrastructure which includes productive
office environment, finance and complementary resources. Incubators are
mostly promoted by government or professional organisations seeking to
develop small enterprises in a particular area.
Some times venture capital
funds also have their own incubators and companies also set up in-house
incubators. Incubators support the entrepreneur in the pre-venture capital
stage, that is, when he wants to develop the idea to a viable commercial
proposition which could be financed and supported by a venture capitalist.