Finance for entrepreneurs and small businesses is a challenge across the globe, especially at the seed and market development stages. The reason for the financing gap can involve both supply and demand issues, and can be particular to a specific sector in the economy. Technology entrepreneurs often face challenges because they have no or limited collateral, and financial institutions often do not know how to evaluate the risk and returns of such enterprises. In other instances the entrepreneur behind the innovative idea does not have the skills to prepare a business plan that is adequate for financier evaluation.

Some incubators provide financing for their clients, while others seek to influence existing and potential financiers in the market place, while also educating the incubates about the financing options available and how to navigate the financing environment.