You didn't apply to a startup incubator. You applied to a local vanity project.

Local/city governments all over the world are trying the "incubator" fairy dust in an attempt to seem hip and with the times. The "analyst" you spoke to is really a gatekeeper trying to filter out any project with a bit of risk (or any possibility of outsized success). What they're looking for is zero risk, guaranteed small-time success which officials can point to and say "see, we're entrepreneurial and digital!!".

On the other hand, if being rejected by third tier "analysts" gets you this down perhaps business isn't for you.