Virtual Incubation Company : Services provided to Portfolio Companies

	Traditional Business Model	The Virtual Incubation Model
Skill and Experience	Costly, to find individuals who bring the right combination of high-level management skills and relevant experience to startup company early in development.	The VIC team brings extensive experience across financial, operations, marketing, capital acquisition, and technology management arenas.
Skill and Experience		Processes specifically developed for early-stage technology core companies: Communications and team-building Operations Partners (investor community, accounting, legal, graphic design and image building, technology, etc.)
Flexible Resource	Not flexible: Long-term contracts, employee benefits, fixed job descriptions, paid time off, and other benefits needed to attract permanent full-time senior managers.	Flexible: Adjust level of work and expenses based on needs and changing financial situation Adjust areas of emphasis as needs of company changes, e.g., focus shifts from capital acquisition to technology development to marketing.
Motivation	Salaries, stock options, bonus plans. Typically risk adverse.	Equity ties — VIC makes profit if and only if portfolio company succeeds. VIC is better able to withstand uncertainty and risk as portfolio company hits roadblocks that could scare risk-adverse employees away.
Cost Comparison	Significant overheads (equipment, facilities, utilities, administration).	Significantly lower overhead.
	Training costs high. In addition to training in the company specifics, many employees seek career advancement related training.	Low training costs. Experienced personnel. No career advancement related training costs.
	Significant legal liabilities.	Low legal liabilities.
	Time on task is low; significant time is spent each day on breaks, personal e-mail, socializing, and "overhead tasks" (e.g. defragmenting and backing up PC hard drives, etc.)	Time on task is very high – time is money to VIC team, plus "overhead tasks" are not charged to portfolio company. Time management skills of VIC team are high (task oriented, focused, used to working under time constraints).
	High recruiting and replacement costs. Estimated average cost to replace an employee is greater than 150% of person’s base salary (including recruiting and training costs).	Low replacement costs. If one team member leaves VIC (and hence is no longer available to the portfolio company) the other team members can take up the slack. Further, VIC assumes the cost of identifying and training the replacement.
	Fixed cash requirements (typical); late payment can be disastrous for employee morale; reduced cash not an option.	Cash requirements are negotiable. Partial payment in equity is negotiable.

Services provided to Portfolio Companies:

Fundraising – Private Investors, Venture Capitalists, Corporate Investors, and Grants
Product and Technology Development Plan
Technical Writing and Proposal Development
Risk Analysis
Business Plan Development
Project Management and Planning
Marketing Plan Development
Market Research
Technology Applications Research
Organization Development Strategy and Guidance
Management Support and Coordination
Human Resources
Graphic Design and Communications
Operations
Financial Management
Accounting
Information Technology and Computer Programming
Recruiting
Technology Assessment