Talent. Time. Funding.

Innovation, once embodied by the image of a sole, brilliant inventor, has become the domain of the corporation and the highly trained, well-equipped R&D team. The concentration of resources and talent found in today’s corporate research settings are exceptional, producing significant, yet often unpredictable results.

The top 100 United States companies alone spend $120 billion annually on R&D. Despite this vast funding pool, many great innovations are never commercialized. When results occur in unanticipated areas or are outside the scope of the company’s commercial activities, the process of commercializing and exploiting non-core projects is unwieldy and inefficient. By nature, corporations are designed to retain -- not release -- valuable human and intellectual property resources, and as a result many exciting ideas (and potential profits) stall inside the lab.

What if companies routinely and willingly exported their innovative ideas into the open marketplace? What if corporations strategically leveraged their internal and external R&D resources, unlocking the dormant economic value of existing ideas and technologies? This is the concept of open innovation championed by Prof. Henry W. Chesbrough, executive director of the University of California’s Center for Technology Strategy and Management at the Haas School of Business. The spirit of open innovation is at the heart of New Venture Partners’ philosophy.

At New Venture Partners, we take a fresh, inside-out approach to corporate venture capital. Our model fulfills the large, unmet need to commercialize corporate technologies through the creation of independent ventures. We identify and cultivate attractive investment opportunities that already exist inside a corporation, and apply our experience to spin them out into successful start-ups, standing by our corporate partners every step of the way.

With New Ventures Partners’ end-to-end internal venture development approach and sophisticated guidance of new ventures, corporate partners are able identify, manage and commercialize their intellectual property and take full advantage of the open innovation paradigm.

Multiple sources of innovation

One formula does not fit all. Technology corporations have many valid reasons to monetize their home grown intellectual property through spinouts:

• New and exciting technologies in central R&D that do not fit the product strategies of the business units

• Intellectual property that takes too long and is too risky for the product units to commercialize, yet is attractive to them as an OEM customer

• Fully commercialized components which business units would rather buy than build

• Internally developed custom software which is too expensive to maintain without external customers