A tech incubator is significant for startups as it provides essential resources, mentorship, and networking opportunities to foster innovation and growth. Incubators often offer access to funding, office space, and training programs that help entrepreneurs refine their business models and accelerate development. Additionally, the collaborative environment encourages knowledge exchange among startups, leading to valuable partnerships. By nurturing early-stage companies, tech incubators play a crucial role in promoting entrepreneurship and driving economic development.