Incubator

Definition of 'Incubator'

An entity designed to nurture business concepts or new technologies to the point that they become attractive to venture capitalists.

An incubator typically provides both physical space and some or all of the services, ie legal, managerial or technical, needed for a business concept to be developed.

Incubators often are backed by venture firms, which use them to generate early-stage investment opporunities.