Each has strengths and weaknesses. The traditional nonprofit has had the benefit of government subsidy and the stability that it brings. The downside has often been a dearth of business expertise that fails to provide adequate support to its entrepreneurs. The for-profit incubator is more likely to have the business experience to assist entrepreneurs, but is more likely to be undercapitalized, less stable and, by extension, more risky for entrepreneurs.
Incubators are expensive.
These services must be provided either by in-house staff or outside partners. That is exactly what is being tried in the eIncubator Technology Center at Baileys Crossroads in Fairfax County, a joint effort of the Fairfax County Economic Development Authority and eIncubator, a private for-profit incubator company. EIncubator's five senior and three support staff have committed to provide hands-on support to their client entrepreneurs. In addition, there is a cadre of professional services firms, led by PricewaterhouseCoopers, which have committed to providing free services to the entrepreneurs. The goal is to graduate companies in six to 12 months when they have hopefully achieved their first round of institutional financing.