Webinar: Launch It Forward: An Entrepreneurial Path for Corporate Leaders to Commercialize Technologies

WEBVTT
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The Innovation Research Interchange is a community of innovators and experts
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focused on today's top innovation growth drivers, from sustainability to ROI,
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the future-ready workforce, digitalization, and more.
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The IRI podcast features fresh insights from leading voices to help manufacturers
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solve innovation challenges and seize opportunities.
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All right, let's go ahead and get started. So thanks, everyone,
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for joining us today. And I want to give a big thank you to Colin Scott,
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Nicole Mignacca, and Ellie Kim of Inventure, who agreed to be interviewed.
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So Inventure systematically evaluates, develops, and launches transformative
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technology solutions in collaboration with corporations to fundamentally reduce
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risk and accelerate the highest potential for commercial success.
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So Colin is their senior vice president of DownSelect and leads in ventures
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rigorous analysis to identify, develop, and launch high potential technology opportunities.
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Nicole is director for DownSelect, and she brings her expertise in systematic
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technology evaluation with extensive experience in life sciences and innovation strategy.
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And Ellie is Director of Economic and Financial Analysis for DownSelect and
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she brings her expertise in financial and data analytics to assess the economic
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viability of all technology solutions.
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And I'm Lee Green and I run IRI's Research and Strategic Initiatives.
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Just a few housekeeping items to get through before we can begin the conversation.
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So first of all, this session is being recorded and you will get a link to the recording.
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We'll be distributing the recording as a podcast so there won't be any visuals here today.
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Second, please hold all your questions until toward the end.
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Once we open the floor to questions, you can either type those into the chat
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or you can raise your hand using that function on the dashboard,
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and you can ask your question face-to-face.
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Great. Let's go ahead and get started with the team.
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I'm going to go ahead and ask each of you to share a little bit about your background
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and your role, and let's go ahead and start with Colin.
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Thanks, Lee. Appreciate you having us and the great introduction.
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My name is Colin Scott. I'm the Senior VP of DownSelect at InVenture.
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I've spent 20 plus years building technology startups from the ground up using
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substantially a similar model to what we have at InVenture today.
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I've done that in a variety of roles and in a variety of industries across a
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wide range of technologies, having a lot of fun doing it,
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and have a background in electrical engineering and physics,
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but sort of quickly found that I really enjoyed building businesses out in the
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world as opposed to spending my time building technologies in the lab.
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And I think those who worked with me in the lab certainly appreciate that decision. Nicole?
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Great. Thanks, everyone, for being here today. As Lee mentioned,
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my name is Nicole Minyaka, and I'm the director of DownSelect at InVenture.
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I've been with InVenture now for about five years, and I've had the opportunity
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to evaluate hundreds of different opportunities from a broad range of our multinational
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partners across a really broad range of industries.
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I've also had the opportunity to play a role at one of the new ventures that
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we started under our group, which is Aeroflex. So it's been a great opportunity
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to be able to work both at InVenture and at the NUCO level, as we call it.
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Prior to joining InVenture, I spent the early part of my career bringing life
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science innovations to market, really all the way from ideation through commercialization
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and then marketing those products to doctors.
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So prior to that, my formal training is in biology and really just appreciate
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the opportunity to have this connection with you all today.
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All right. Thanks. So call Ellie. Hi, my name is Ellie Kim. I'm the Director
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of Economic and Financial Analysis at Inventor.
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I'm part of the DownSelect team, and I work with Colin and Nicole here.
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My career started off as something more like traditional finance,
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banking, and Wall Street after studying economics and biology undergrad.
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After a few years in banking, I pivoted to corporate management since I was
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interested in what went into the decision makings of corporations as I was dealing
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with many MNCs during my banking career.
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So after leaving Wall Street, I got my MBA at Northwestern and went into corporate
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management at various companies.
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My experience spans across e-commerce, industrial, and pharmaceutical.
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And all of those diverse experiences combined brings a lot of value to what
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I do day to day, which is around understanding the financial viability of different
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opportunities from various industries.
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As we remain industry agnostic, having this variety of experience,
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as well as being able to remain flexible is really valuable for what we do.
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So I'm very excited to be here and speak more about what we do and walk you
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through our processes. Thank you so much for having us.
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Great. Okay. So now everyone knows who everyone is.
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So, Colin, why don't you kick us off and tell us a bit more about InVentures
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Evolution and how the commercialization model works and it's been developed?
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Yeah, sure. This is, you know, an adventure's origin story. Where do we come from?
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And it's really intertwined tightly with the history of our founders and executives.
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And I'll give you an example.
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Our current chief strategy officer and co-founder, Dr. John Scott.
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He and Mike Otworth, our founding CEO and chairman, and Bill Haskell,
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our current CEO, along with our co-founder, recently retired, Rick Brenner.
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They worked together for many years going back into the 80s.
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And, you know, John started as a scientist. He was an academic.
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He's got dual PhDs in physics and high energy astrophysics. So he's a smart cookie.
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We got a few of those on our team, which is nice to be surrounded by that.
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And he decided to leave academia and he became chief science officer of a public company,
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found he didn't like big corporate life and
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went out on his own started a technology company
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from the ground up grew it sold it thought that
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was kind of neat started a second company grew
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it sold it found out that he really had a lot of fun doing that and he and bill
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haskell and later mike otworth and rick brenner and others got together and
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said you know we should apply some systematic rigor,
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some scientific method to the concept of building potentially disruptive technology
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companies from the ground up.
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And that's where it started in the early 90s.
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And, and so they, and we have been working on refining that process since then.
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And, you know, I think today we have what,
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what I like to think is as sort of the perfection of a model,
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or at least is getting towards that as we try to be a learning organization,
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but it's really focused for us on now a collaboration with multinationals who
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can really bring so much to the table when combined with the entrepreneurial
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and operational expertise that we bring.
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And that collaboration is really unique that can really fundamentally,
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from our perspective, reduce risk for every new code that we start by the time we start it.
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And that's a really important focus of our methodology because if you look at
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a standard approach to technology startups, there's a lot of sort of spreading
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risk across a portfolio.
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And that's okay if what you have is fungible cash and probability on the whole
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gives you the return you're looking for.
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But if what you have is non-fungible people and time and resources and technology
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solutions to unmet market needs that you have knowledge about,
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those things aren't fungible, right?
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So you have to make sure when you're doing what we do, you have to make sure
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that everything you commit to has the highest probability for success that it possibly can.
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So that's what Adventure tries to focus on.
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Okay. All right. I think I got it. But we have one more background question,
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and then I want to kind of dive into all of your thought leadership and all
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the insights that you all have to share.
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So, Nicole, can you tell us what DownSelect actually is and,
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you know, the framework and how does it differ from other technology models,
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evaluation models? similar.
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Yeah, absolutely. Excited to share some more on our process here.
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So the way that we think about it really is that downslut is like the beating heart of InVenture.
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It's our systematic process by way we can review opportunities against our model
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and what's important to us so that we can ultimately make the right decisions
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on what new companies that we start under our group and set them up for success.
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As Colin mentioned, we're very selective in what we go after.
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And when we make a determination on starting a new venture around something,
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we're full force on making sure that that would be a success.
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We operate and fund that company on our own. So we're very, very invested in
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the success of our ventures.
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And our model is really designed around bringing transformative,
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disruptive market solutions to the world.
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So not incremental, really those truly disruptive technologies.
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That's what our model is centered around identifying and then reducing risk for market entrance.
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So some of the core pillars of our model that set us apart is we're looking
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for, like I said, transformative technology solutions,
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usually a B2B approach that have been developed to a certain level of TRL,
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so technology readiness level, for us to bring it forward.
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We're looking for things that truly solve an unmet need in the market that is
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significant and that is expected to grow over time in terms of its need.
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We also quantify the value proposition that can be created by bringing the solution to market.
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And that's what we use to drive early adoption.
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So by having that in hand, we can drive early adoption by being able to show
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the dollars and cents value that we can bring to our customers.
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And that's how we overcome their reluctance to change the way they do things, right?
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Going back to being disruptive and transformative, we are looking to change
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the way that the market operates. And with that, there will be reluctance.
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So that's why we really focus on the quantification of the value proposition.
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And we also work with our multinational partners to support catalyzing early adoption.
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So having them in our corner, either as a customer or a channel to the market,
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really helps bring that risk level down as well.
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So when we complete our downselect analysis, what the outcome is,
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is a blueprint, excuse me, and full go-to market strategy for the venture that we're starting.
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So the work that's done in Down Select is basically the work that would be done
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in the first year or two of new venture creation.
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But we do that work prior to even starting the company so that we can be really
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sure that we understand what are the risk points and what are our mitigation
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strategies as we continue to introduce it into the market.
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So like I said before, it's really all about making the right decisions for
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us and setting our companies up for success.
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And another really key way that we do that is with our broad team of experts
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that we have in-house across a broad range of disciplines.
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That really allows us to be holistic. And we have what we call CXOs.
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So basically what CXOs are are in-venture people who are really wired for that
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entrepreneurial skill set that step into our new ventures and play a role in their early days.
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So that they can support that transition and setting them up for success.
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So that's something that we really foster within our culture at InVenture is
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that kind of CXO role with the idea of InVenture people supporting our new codes,
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eventually coming back to InVenture at the right time.
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And again, everything is really all around how do we create the most abundant,
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fruitful soil for the new ventures that we're starting under our company?
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If I may add real quick, Nicole, I have a good example of something that paints a good picture.
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So I just wanted to quickly talk about my personal experience in the role.
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So when I first joined the team, I thought my role would be something similar
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to what I would do at private equity or venture capital company.
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But my week one, I had a very long, like hundreds of pages of technical documents,
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and I was expected to really immerse myself in them.
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I'm sure many of you in this call are familiar with something like this,
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but I've never seen anything like that before.
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I mean, I was a business person. So mass balance, energy balance,
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process flow, and the list goes on.
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And I thought my job was going to be just crunching numbers.
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But once I familiarized myself with all the technical information and understood
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it to the degree that I can identify gaps,
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variabilities, and key areas of risks, of course, with the help of our internal
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and external experts, like Nicole mentioned, I was able to go into the next
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level of financial analysis and simulation.
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And this approach of going much beyond just crunching numbers really sets us
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apart from just putting together the financials.
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At least this was my experience and I wanted to share this with everyone because
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I think it paints a good picture of some things we do and how we're different.
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So yeah, I thought it might be a good addition to what Nicole just described.
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Great. Okay. So, Ellie, let's stick with you.
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And so what are the most common risk factors that you have come across when
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you're looking at breakthrough technologies?
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Right. So we believe there are five key inherent risks that they are around
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market, customer, technology, capital, and operations.
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And can you expand on those a little bit? Yes, yes, absolutely.
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So fundamentally, we assess technology solutions instead of developing them
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from ground up. So this comes with unique challenges.
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And while we have significantly lowered risks around market,
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customer, and technology, which were the first three I mentioned,
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we're responsible for still funding and operating and scaling our new costs.
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And while this may sound very similar to budget allocation risks at multinational
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corporations, we also have to go out there and raise funds. And this is where
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our capital markets team becomes crucial.
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We also take on the risk of starting and operating the company,
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not just a business unit or a team.
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So while the downslide analysis around market sizing, value chain research, sensitivity analysis,
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technology validation, and so on, de-risks many of the micro-level factors,
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there's still many macro-level factors that may be out of our control.
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And those are the risks that we face when we start a new company.
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So it may not be a fail-proof approach, but it's rather a risk-reduced approach,
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which is still very significant.
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So I believe many of you in this webinar will be joining us in our workshop in person.
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So Nicole and I will be there, and we'll make sure to cover some examples of this in detail as well.
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And Ellie, let me just add a quick comment. When we're looking at those five
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risks, I usually think about those first three market, customer and technology.
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Those are really the risk reduction is entangled very closely with our collaboration
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with the multinational, right?
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Because they have a massive amount of market data and knowledge and insight
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that, as we say, no lone entrepreneur could gather in 50 lifetimes.
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So that's a very important element that helps us reduce the risk of our understanding of the market.
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And in the same way, the customer, especially related to early adoption,
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understanding really what the customer's needs are and how the solution can
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solve those needs for them and drive value.
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So that collaboration with our multinational collaborators is essential to that understanding.
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And then, of course, the technology, they are either developing the technology
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themselves or adopting it as a customer, validating that technology itself.
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So that collaboration really helps reduce those first three risks.
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And then our demonstrated success over time helps continue to minimize the other
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two risks around funding and operations.
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Great. Colin, let's stick with you because we're going to talk about the subject
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that everyone has a love-hate relationship with, metrics. Oh, yes.
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Everyone loves metrics. So can you talk a little bit about the metrics that you use?
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And also, you know, we're talking about transformative innovation here,
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how you balance that short and long term, which is always a huge challenge.
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Yeah, yes, it is. I'll start by saying there's no silver bullet.
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And anyone that tells you there is one metric to rule them all is selling you
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something that you don't want to buy.
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So generally, I'd tell you that you really want to understand the fundamentals of your situation.
00:17:21.553 --> 00:17:24.433
What are your objectives you're trying to reach?
00:17:24.613 --> 00:17:32.013
And what are realistic metrics that are meaningful to help you and the rest
00:17:32.013 --> 00:17:36.393
of your organization understand your ability to reach those outcomes?
00:17:36.393 --> 00:17:39.793
And it's i
00:17:39.793 --> 00:17:43.713
don't again i don't think there are universal metrics i'll
00:17:43.713 --> 00:17:46.733
say for us again what we're
00:17:46.733 --> 00:17:51.873
trying to do is found fun operate and scale transformative technology solutions
00:17:51.873 --> 00:18:00.573
as new companies and for us we look at what we refer to as match which are five
00:18:00.573 --> 00:18:04.293
elements of what we call quality scoring match,
00:18:04.513 --> 00:18:06.693
it's the market, the advantage.
00:18:07.493 --> 00:18:11.273
The timeline, the capital, and high value.
00:18:11.653 --> 00:18:17.913
And so when we're looking at opportunities to found as in venture operating
00:18:17.913 --> 00:18:22.593
companies, Nucos, we want to understand the external environment.
00:18:22.833 --> 00:18:25.153
That's the market, understanding the market. Is it big enough?
00:18:25.253 --> 00:18:29.893
Is it growing fast enough? What are the market dynamics? What are the trends?
00:18:32.368 --> 00:18:37.028
Is it an attractive market to pursue for our goals?
00:18:37.448 --> 00:18:41.968
Then from an advantage perspective, what we really want to understand is in
00:18:41.968 --> 00:18:45.148
the context of that market and the competitive landscape,
00:18:45.148 --> 00:18:54.588
how does our solution play into the solving the fundamental needs of customers
00:18:54.588 --> 00:18:57.628
in that market in a way that only we can deliver?
00:18:57.628 --> 00:19:02.648
And not only do we want to deliver a unique solution into the marketplace,
00:19:02.648 --> 00:19:06.908
but we need to make sure that it delivers competitive advantage that drives
00:19:06.908 --> 00:19:10.608
value uniquely, but that can also be maintained over time.
00:19:11.148 --> 00:19:14.608
Obviously, there's intellectual property that can help with that.
00:19:15.328 --> 00:19:20.168
Patents, know-how, but there are also strategic control points that you want
00:19:20.168 --> 00:19:22.728
to intentionally program into your business model.
00:19:22.728 --> 00:19:26.568
You know, is there a point in the supply chain where there's a bottleneck?
00:19:26.748 --> 00:19:30.948
How can you get a preferential access there, for example?
00:19:31.328 --> 00:19:36.008
Right. So you want to make sure for us, we need to make sure that we have an
00:19:36.008 --> 00:19:40.028
advantage that can be established and then maintained over time.
00:19:40.648 --> 00:19:45.868
And then the timeline for us, and this will tie into the scale of ROI,
00:19:45.868 --> 00:19:53.188
is all about understanding what are the most meaningful commercial milestones
00:19:53.188 --> 00:19:57.328
that you need to be able to reach to demonstrate that path to success,
00:19:57.468 --> 00:19:58.528
long-term business success.
00:19:58.528 --> 00:20:01.948
How long do you think it's going to take you to get to each of those?
00:20:02.308 --> 00:20:05.668
What's the organization you need to put into place to be able to reach those?
00:20:05.868 --> 00:20:09.608
What's the strategy that you need to implement to be able to reach those?
00:20:10.028 --> 00:20:15.748
And mapping that out to make sure that it fits with the goals that we have for
00:20:15.748 --> 00:20:20.988
us reaching a billion dollar enterprise value for every new code that we start, right?
00:20:21.528 --> 00:20:26.348
And we're not waiting 20 years to get there for us. You know,
00:20:26.468 --> 00:20:31.348
so understanding that timeline is important and then matching that with the capital strategy.
00:20:31.990 --> 00:20:36.130
What amount of capital is required to reach each of those milestones?
00:20:36.510 --> 00:20:38.210
When do we need to raise that?
00:20:38.670 --> 00:20:41.910
What's the cost of capital expected to be at each of those points,
00:20:42.050 --> 00:20:44.730
given the risk-adjusted nature of reaching those milestones?
00:20:44.970 --> 00:20:48.850
What's the strategy to reach that amount? What's the structure?
00:20:49.050 --> 00:20:52.750
All of those things we want to try to map out ahead of time so that we understand
00:20:52.750 --> 00:20:55.470
what it's going to take to get to where we want to go.
00:20:56.430 --> 00:21:01.270
And then high value. And this is, you know, Nicole mentioned And Downselect
00:21:01.270 --> 00:21:02.530
is the beating heart of an adventure.
00:21:02.790 --> 00:21:05.970
And for me, this value piece is the soul of Downselect.
00:21:06.150 --> 00:21:12.730
And that's really deeply understanding what delivering a solution into the marketplace
00:21:12.730 --> 00:21:18.950
to an otherwise unmet need, how does that drive economic value for the customers that adopt?
00:21:19.450 --> 00:21:24.870
So understanding not just the features and benefits, but the dollars and cents.
00:21:25.230 --> 00:21:29.590
And understanding that is what helps us understand how compelling that solution
00:21:29.590 --> 00:21:31.130
is to drive early adoption.
00:21:31.350 --> 00:21:36.430
If it's game changing, companies like people don't like to change what they
00:21:36.430 --> 00:21:37.810
do. So you have to compel them.
00:21:38.470 --> 00:21:44.090
And so a sufficiently compelling value proposition is what can predictably drive early adoption.
00:21:44.350 --> 00:21:49.470
And so for us, it's all about finding that match that is a fit with our collaborator
00:21:49.470 --> 00:21:53.310
and their strategic goals and in venture and our goals.
00:21:53.670 --> 00:21:58.710
And again, And understanding for your situation,
00:21:58.730 --> 00:22:03.790
what the metrics are to help you reach your outcomes, and then how you want
00:22:03.790 --> 00:22:09.250
to define the timeline on which you need to see what kind of returns. So it's very similar.
00:22:09.670 --> 00:22:14.390
And you want to understand what matters for you and your organization.
00:22:14.750 --> 00:22:18.870
Again, no silver bullet, but you do definitely want to make sure that you understand
00:22:18.870 --> 00:22:25.110
the different time scales and the risk adjustments that you need to make to
00:22:25.110 --> 00:22:26.170
get to different time points.
00:22:26.350 --> 00:22:29.110
So that's how we look at it that can be generalized.
00:22:29.470 --> 00:22:33.090
And, you know, Ellie and Nicole are going to do a great job of covering this
00:22:33.090 --> 00:22:35.730
a lot more in detail in the workshop. up.
00:22:35.750 --> 00:22:40.130
Yeah, quickly, Colin, I'd love to add to that, which I think you hit on really
00:22:40.130 --> 00:22:42.810
well, is that the metrics are what's important to us.
00:22:43.030 --> 00:22:46.990
You know, I mentioned in my bio earlier that, you know, we've looked at hundreds of opportunities.
00:22:47.230 --> 00:22:50.830
Many of those opportunities that we may have passed on are very much so viable
00:22:50.830 --> 00:22:54.910
businesses for other groups or other opportunities in terms of bringing them
00:22:54.910 --> 00:22:56.710
to market, but weren't a fit for us.
00:22:56.830 --> 00:23:01.690
So I think that point is really key in terms of what we focus on and the metrics
00:23:01.690 --> 00:23:03.590
there and then that driving our decision making.
00:23:04.668 --> 00:23:10.128
Great. And Nicole, just to stick with you, so what strategies have you found
00:23:10.128 --> 00:23:13.768
that have been effective for these collaborations and, you know,
00:23:14.088 --> 00:23:19.108
to kind of speed the process and make sure everything's strategically aligned for everyone, too?
00:23:19.968 --> 00:23:23.008
Yeah, absolutely. And just to be specific, we're talking about collaborations
00:23:23.008 --> 00:23:24.788
with our multinational partners.
00:23:25.268 --> 00:23:29.268
And really how we approach that and make sure that we have strong relationships
00:23:29.268 --> 00:23:32.708
there is by really showing them what makes us unique.
00:23:32.708 --> 00:23:36.888
You know, multinationals, they invent so many incredible technologies,
00:23:36.888 --> 00:23:41.948
and not all of those technologies make sense for them to commercialize for one reason or another.
00:23:42.188 --> 00:23:46.388
It might fall slightly outside of their strategic focus or be slightly outside
00:23:46.388 --> 00:23:47.548
of their core competency.
00:23:47.868 --> 00:23:51.548
And when that happens, and sometimes that happens on a truly transformative
00:23:51.548 --> 00:23:56.928
technology, these are opportunities that are worthy of having their own company created around them.
00:23:57.048 --> 00:24:01.008
And that's where we come in. You know, also, multinationals are really used
00:24:01.008 --> 00:24:05.388
to a lot of people coming to them and trying to sell them their ideas and their technologies.
00:24:05.708 --> 00:24:09.228
And really, what we come to them with is a unique model to say,
00:24:09.308 --> 00:24:12.528
we want to actually acquire your technologies, we want to buy them.
00:24:12.728 --> 00:24:16.908
It's more of a buyer versus a seller mindset, where we're able to come in and
00:24:16.908 --> 00:24:21.788
help them create financial and strategic value from their R&D network that they
00:24:21.788 --> 00:24:24.908
might not be interested for one reason or another, like I said,
00:24:24.968 --> 00:24:26.648
in terms of commercializing internally.
00:24:26.648 --> 00:24:30.168
So when we approach them and in the structure of our relationships,
00:24:30.188 --> 00:24:33.188
we really focus on our complementary skill sets.
00:24:33.388 --> 00:24:37.768
So as Colin mentioned earlier, you know, multinationals have more market data
00:24:37.768 --> 00:24:42.348
than any one entrepreneur could ever hope to have. So they have tons of market data.
00:24:42.528 --> 00:24:45.948
They are really tapped into the market needs, which, as we mentioned earlier,
00:24:46.168 --> 00:24:47.468
is super important for our model.
00:24:48.149 --> 00:24:52.369
They have significant R&D networks with incredible technologies within them.
00:24:52.809 --> 00:24:59.049
They are also, in terms of size, just able to be very large in terms of global reach.
00:24:59.149 --> 00:25:03.629
But that also does create a lot of red tape. It makes it hard to move quickly.
00:25:03.649 --> 00:25:07.869
It makes it hard to do something that's very different or outside of the box
00:25:07.869 --> 00:25:09.209
of what they typically do.
00:25:09.589 --> 00:25:12.049
And that's, again, where our complementary skill sets come in,
00:25:12.109 --> 00:25:14.529
in terms of being entrepreneurial, agile,
00:25:14.849 --> 00:25:19.729
set up to do really big and different things and set up to do that in a way
00:25:19.729 --> 00:25:24.269
that allows us to fund and operate that so we can take that risk off of their
00:25:24.269 --> 00:25:27.989
plate ultimately and really set them up to gain,
00:25:28.229 --> 00:25:31.569
like I mentioned earlier, financial and strategic value from what we're working
00:25:31.569 --> 00:25:33.109
to commercialize with them.
00:25:33.569 --> 00:25:39.109
The gold piece for us is if we can find a technology that is truly strategic
00:25:39.109 --> 00:25:44.709
to them that we can bring to market to create that really strong value across both sides.
00:25:45.489 --> 00:25:50.269
We also have a strategic partnerships team that is set up to work with our multinationals
00:25:50.269 --> 00:25:54.069
directly, ensure that the relationship has full transparency,
00:25:54.509 --> 00:25:56.089
really strong communication,
00:25:56.749 --> 00:26:00.869
and expectations around our process for the different process-y steps,
00:26:01.049 --> 00:26:02.989
what they can expect throughout that.
00:26:03.169 --> 00:26:07.129
And then we do work, of course, to meet with our multinational partners in person
00:26:07.129 --> 00:26:08.929
and collaborate as much as we can.
00:26:09.656 --> 00:26:14.276
And then in the eventual opportunity and eventual place where if we pass on
00:26:14.276 --> 00:26:19.696
a specific project, we always provide our research and our due diligence back to them.
00:26:19.976 --> 00:26:24.156
So we almost provide free consulting services, if you think about it that way,
00:26:24.236 --> 00:26:29.056
in terms of if we pass on an opportunity, we make sure that they get all of our information back.
00:26:29.056 --> 00:26:32.876
And we got a lot of good feedback from them and our multinational partners related
00:26:32.876 --> 00:26:35.716
to, wow, like, you know, we never thought about it this way,
00:26:35.716 --> 00:26:39.996
or you helped us uncover this new value creation item that we hadn't thought about.
00:26:40.216 --> 00:26:45.056
So our goal across the board is strategic value back to our multinational.
00:26:45.216 --> 00:26:48.356
And that can take a lot of different forms, whether it's just something that
00:26:48.356 --> 00:26:51.236
we're evaluating or if it's a new venture that we start.
00:26:51.456 --> 00:26:55.336
So it's really all around that and just, you know, working with people that
00:26:55.336 --> 00:26:59.316
we really enjoy and having strong relationships. That's really key for us, too.
00:27:00.496 --> 00:27:04.996
Okay. And speaking of relationships, so, Ellie, can you talk a bit more about
00:27:04.996 --> 00:27:08.816
how you all make sure that you're engaging customers in a meaningful way in
00:27:08.816 --> 00:27:10.896
this whole process? Yes.
00:27:11.716 --> 00:27:17.796
So ideally, if an opportunity is introduced to us by a multinational corporation,
00:27:17.816 --> 00:27:24.296
the first potential customer for that technology is often that MNC collaborator,
00:27:24.536 --> 00:27:30.836
meaning the customer engagement can happen as early as day one of us evaluating that opportunity.
00:27:30.836 --> 00:27:35.696
As soon as this happens, we start to deeply understand the underlying unmet
00:27:35.696 --> 00:27:37.576
need and the market context,
00:27:37.656 --> 00:27:42.796
because it's crucial for us to understand how this technology solving that need
00:27:42.796 --> 00:27:46.396
can drive economic value to those that adopt it,
00:27:46.496 --> 00:27:51.936
and then ultimately understand how our multinational collaboration collaborator
00:27:51.936 --> 00:27:55.996
can catalyze early adoption by being a customer or a channel.
00:27:56.639 --> 00:28:01.379
And to ensure the technology solution is addressing not just the needs of our
00:28:01.379 --> 00:28:07.819
MNC collaborator, but of the overall value chain, one of our unique approaches is called ICQVP.
00:28:08.099 --> 00:28:11.559
It's an internal term, but it stands for immediate, compelling,
00:28:11.919 --> 00:28:13.419
quantitative value proposition.
00:28:13.659 --> 00:28:18.659
As you can tell from what it stands for, it's basically understanding the value
00:28:18.659 --> 00:28:23.959
proposition in a way that is a lot more quantitative, granular, and robust.
00:28:23.959 --> 00:28:28.399
We go into the level of dollars and cents through the whole value chain,
00:28:28.719 --> 00:28:31.939
not just to the immediate supplier and customer.
00:28:32.099 --> 00:28:37.179
Because if the technology is truly transformative, it's going to affect everyone
00:28:37.179 --> 00:28:40.139
in that value chain, not just who you buy from and who you sell to.
00:28:40.659 --> 00:28:45.559
So for us, this is essential. And as Nicole mentioned, we've shared this analysis
00:28:45.559 --> 00:28:47.859
with our collaborators in the past as well.
00:28:47.959 --> 00:28:52.439
And they found it very helpful. And this helps to strengthen our relationship
00:28:52.439 --> 00:28:57.839
with our collaborators, who may be the customers as well. So there is that relationship building.
00:28:58.139 --> 00:29:02.219
And I also want to highlight that this is an approach that could be beneficial
00:29:02.219 --> 00:29:03.239
for every organization.
00:29:03.679 --> 00:29:07.659
So, you know, if anyone in this webinar is considering how can we strengthen
00:29:07.659 --> 00:29:09.859
our analysis, this is definitely one of the levers.
00:29:09.859 --> 00:29:15.519
So to bring us back home, early and meaningful customer engagement and combining
00:29:15.519 --> 00:29:21.099
that with our unique approaches, such as ICQVP, is what gives us an edge in
00:29:21.099 --> 00:29:24.319
commercializing new technologies through validating the needs,
00:29:24.619 --> 00:29:27.379
value proposition, and early adoption.
00:29:28.678 --> 00:29:36.118
Okay. So, Colin, what are some of the challenges around building an innovation
00:29:36.118 --> 00:29:38.318
ecosystem that you've seen?
00:29:39.758 --> 00:29:45.498
It's critical, but it can be hard to actually go out there and make those connections.
00:29:45.898 --> 00:29:49.378
And so what have you seen that are best practices there?
00:29:50.438 --> 00:29:57.018
So I'll say that there are two areas to focus on from my perspective.
00:29:57.018 --> 00:30:00.938
And we can talk a little bit about how we do that sometimes.
00:30:01.158 --> 00:30:08.278
But for me, the first area to focus on is always keeping in mind the need and the solution.
00:30:09.238 --> 00:30:13.578
And then the second area is deeply understanding.
00:30:14.918 --> 00:30:21.778
The strategic and capability gaps in your own organization and collaborating
00:30:21.778 --> 00:30:26.218
with a partner mindset like Nicole talked about to fill those gaps.
00:30:26.978 --> 00:30:31.378
So those are the two big things for me from the perspective of the needs and the solutions.
00:30:32.318 --> 00:30:36.318
A lot of times, and I'm very guilty of this myself, you know,
00:30:36.498 --> 00:30:38.398
we fall in love with our own pet project.
00:30:39.058 --> 00:30:45.978
And, you know, I'm a geek. I love cool technology and I want to do something with it more.
00:30:45.978 --> 00:30:53.458
And so, you know, there's always that tendency to continue a project because
00:30:53.458 --> 00:30:57.298
there's some coolness to it.
00:30:57.798 --> 00:31:01.038
It's got some draw for you in some way.
00:31:01.178 --> 00:31:09.138
But if it doesn't represent a solution to a need, then it is going to be impossible
00:31:09.138 --> 00:31:12.238
to build the right innovation ecosystem around it.
00:31:12.238 --> 00:31:18.438
You can find people to progress it, but it's not going to come to the right end, right?
00:31:18.598 --> 00:31:23.998
And so if every time you are starting a project or working on a project and
00:31:23.998 --> 00:31:28.198
understanding how to build the innovation ecosystem around it,
00:31:28.338 --> 00:31:33.438
maintains that discipline to focus on the need and the solution.
00:31:34.878 --> 00:31:41.858
And then the second piece is understanding your strategy and your capability
00:31:41.858 --> 00:31:46.858
and identifying the gaps in that and making sure that you find that pointed line,
00:31:47.421 --> 00:31:54.681
solution to your problem, right? You find the collaborator that can fill that gap that you need.
00:31:55.441 --> 00:32:00.041
There are lots of reasons, as was mentioned earlier, there are lots of reasons
00:32:00.041 --> 00:32:04.461
where it makes sense to try to develop a technology solution to a need that
00:32:04.461 --> 00:32:08.681
you have, but it doesn't make sense to be the one to commercialize that.
00:32:09.381 --> 00:32:14.681
Maybe because you have different strategic direction, maybe because the organization's
00:32:14.681 --> 00:32:20.261
already decided not to build the internal core competency and capability to be able to pursue that.
00:32:20.581 --> 00:32:23.521
And that makes a lot of sense, but you have a gap then.
00:32:23.701 --> 00:32:28.621
So how do you identify the right collaborator to fill the specific gap there?
00:32:28.961 --> 00:32:33.421
So it's understanding really what you should do, what you can do,
00:32:33.441 --> 00:32:36.501
and who you need to help do that.
00:32:36.701 --> 00:32:42.921
And I'm sure If you're listening here, you don't identify at all with red tape
00:32:42.921 --> 00:32:46.681
in your organization, and things work very smoothly and very easily.
00:32:46.901 --> 00:32:49.761
So this is talking to other people, I'm sure.
00:32:50.281 --> 00:32:56.721
But, you know, if you need to commercialize a new potentially disruptive,
00:32:57.101 --> 00:33:01.621
transformative, game-changing technology solution, you need to be able to operate
00:33:01.621 --> 00:33:03.081
with speed and flexibility.
00:33:03.581 --> 00:33:07.461
And not all organizations are able to do that internally.
00:33:08.361 --> 00:33:12.041
And that's why when we collaborate with multinationals, you know,
00:33:12.181 --> 00:33:14.841
we kind of get the sense of where have you been?
00:33:15.221 --> 00:33:20.681
I have this gap. I have lots of really great paths to internally commercialize
00:33:20.681 --> 00:33:26.241
things that are incremental, that fit with our strategy, our core product lines and our divisions.
00:33:26.941 --> 00:33:31.941
If it's something that totally makes sense for an external incumbent, that's great.
00:33:31.941 --> 00:33:35.601
But when something doesn't fit those kind of paths, what do we do?
00:33:35.601 --> 00:33:40.801
And so, you know, that's just identify your gaps, understand who can fill those
00:33:40.801 --> 00:33:46.541
gaps, make sure that it's aligned and everyone keeps in mind the need and the
00:33:46.541 --> 00:33:47.621
solution associated with it.
00:33:47.861 --> 00:33:51.141
So that for me are those are some of the big challenges.
00:33:52.282 --> 00:33:57.782
Okay. So last question before we open up to the audience.
00:33:58.142 --> 00:34:03.162
So, Nicole, just what are some areas we should be looking at in the next three to five years?
00:34:03.342 --> 00:34:07.302
What, you know, technology sectors or market needs are going to be the big game
00:34:07.302 --> 00:34:08.642
changers that you think we'll see?
00:34:09.282 --> 00:34:12.322
Yeah, I mean, at the end of the day, I think everyone's pretty familiar with
00:34:12.322 --> 00:34:15.942
kind of the big, big heavy hitting ones, you know, AI, cryptocurrencies,
00:34:16.402 --> 00:34:17.502
various software things.
00:34:17.702 --> 00:34:21.362
I mean, the list goes on. But for us, in the way that we look at things,
00:34:21.522 --> 00:34:25.942
we're less focused on what are the hot industries where there might be some
00:34:25.942 --> 00:34:30.982
potential to win now versus we take the mindset of where are the unmet needs
00:34:30.982 --> 00:34:36.162
agnostic to the industry where there can be the perfect match between a technology
00:34:36.162 --> 00:34:39.842
solution that we have at hand and the right time to meet that need.
00:34:39.842 --> 00:34:44.022
So when it comes down to it for us, that's the lens that we look at it through.
00:34:44.502 --> 00:34:48.362
And when you find a really strong need and a technology solution that fits at
00:34:48.362 --> 00:34:51.002
the right time, it really can be the perfect match.
00:34:51.002 --> 00:34:56.322
And we find the most success in taking that model as opposed to really staying
00:34:56.322 --> 00:34:59.842
focused on, you know, maybe a couple of industries that are really fought in the moment.
00:35:00.522 --> 00:35:03.342
All right so if anyone
00:35:03.342 --> 00:35:06.162
would like to raise their hand you can come on and do
00:35:06.162 --> 00:35:13.822
a question there or feel free to put them into the chat all right we've had
00:35:13.822 --> 00:35:20.362
one come in okay so can you share any surprises that you've had anything unexpected
00:35:20.362 --> 00:35:25.422
that you were able to to uncover that you didn't really think you'd be able to.
00:35:26.563 --> 00:35:33.183
So I'll take a cut at this. I'll tell you that, and it's an example of what
00:35:33.183 --> 00:35:36.443
we see in the four operating companies that we've started,
00:35:36.883 --> 00:35:41.903
is that sustainability can and should be a driver of value.
00:35:42.663 --> 00:35:49.903
There are lots of reasons for this, but ultimately, if something is not economically
00:35:49.903 --> 00:35:55.163
viable, it's not sustainable for a commercial organization, right?
00:35:55.403 --> 00:36:01.203
And it's been, I don't know, sort of a pleasant surprise that as we analyze
00:36:01.203 --> 00:36:03.603
the sustainability impact of
00:36:03.603 --> 00:36:08.283
many opportunities, but especially the four companies that we've started,
00:36:08.543 --> 00:36:13.403
that the elements that make something sustainable,
00:36:14.003 --> 00:36:15.843
drive value, right?
00:36:16.023 --> 00:36:24.863
If you have an advantage because you're using fewer resources like energy or material,
00:36:25.443 --> 00:36:31.663
then you have a lower cost structure and that increases your margin and that drives value, right?
00:36:31.903 --> 00:36:37.563
And then there are other ways that there is some brand enhancement value,
00:36:37.823 --> 00:36:44.643
or you meet certain criteria that customers need, and these things help drive preferred adoption,
00:36:44.983 --> 00:36:49.863
premium pricing, that grows the top line, that drives economic value.
00:36:50.603 --> 00:36:58.163
So seeing that play out in really all four of our companies has been quite a pleasant surprise.
00:36:59.103 --> 00:37:02.083
To really build quickly off that before we jump into this one,
00:37:02.203 --> 00:37:06.643
Colin, as part of our process, we're always looking to improve the process based
00:37:06.643 --> 00:37:09.763
on opportunities that we pass through and learnings that we have.
00:37:09.983 --> 00:37:12.403
And when we do that, there's always things where it's like, oh,
00:37:12.463 --> 00:37:14.283
I wish we had known this at the time.
00:37:14.443 --> 00:37:17.403
I wish, you know, I could have foreseen this trend, right?
00:37:17.503 --> 00:37:20.463
Because you only have the information that you have when you're doing your due
00:37:20.463 --> 00:37:22.903
diligence process and you're making your recommendations.
00:37:23.403 --> 00:37:26.863
But ultimately, at the end of the day, that's why it's so key for our people
00:37:26.863 --> 00:37:31.003
to be adaptable, especially because we're working with such transformational
00:37:31.003 --> 00:37:33.763
opportunities that you need to be able to adapt to,
00:37:34.323 --> 00:37:38.303
okay, this is what we believe to be true and due diligence, but when we actually
00:37:38.303 --> 00:37:40.643
put it into the market and we start to see that market change,
00:37:40.783 --> 00:37:44.803
how can we continue to adapt to make sure that we are, you know,
00:37:44.943 --> 00:37:47.323
changing with the market as we bring the solution together?
00:37:47.323 --> 00:37:50.743
So there's always that element that I think is really key for anybody who's
00:37:50.743 --> 00:37:52.543
successful within our enterprise.
00:37:53.993 --> 00:37:58.493
All right. So the question that came in was, when you do your due diligence,
00:37:58.933 --> 00:38:04.413
do you have criteria that it has to pass TRL 1, 2, 3, or 4, etc?
00:38:05.793 --> 00:38:11.633
Yeah, great question. Of course, we have our own pretty standard stage gate
00:38:11.633 --> 00:38:16.913
kind of process, which I think can be widely applicable in a lot of situations
00:38:16.913 --> 00:38:19.613
that you'll find in your own situation.
00:38:20.453 --> 00:38:25.653
And again, it goes back to understanding what your objectives are and what metrics
00:38:25.653 --> 00:38:30.693
you need to see to be able to show sufficient progress towards those outcomes.
00:38:30.793 --> 00:38:33.773
For us, we have four phases of our evaluation.
00:38:34.033 --> 00:38:39.313
They are opportunity screen, critical factor assessment, comprehensive quantification,
00:38:39.633 --> 00:38:40.893
and then strategy and formation.
00:38:41.473 --> 00:38:45.773
And I'll say, you know, most opportunities fall out in phase one,
00:38:45.993 --> 00:38:50.833
most of the rest of them fall out in phase two, and a few make it to phase three,
00:38:51.013 --> 00:38:55.413
and we've only had four that have made it to phase four and then become a new co.
00:38:56.373 --> 00:39:02.393
And, you know, so really, I think the best thing to do is understand what is
00:39:02.393 --> 00:39:06.093
most critical as soon as you can so you can get to fast no's.
00:39:06.593 --> 00:39:12.853
For us, opportunity screen is where we just look at, are the elements of the
00:39:12.853 --> 00:39:16.393
opportunity that could be a fit with our model there?
00:39:16.633 --> 00:39:19.133
And does it look like there's sufficient potential, right? For us,
00:39:19.193 --> 00:39:23.573
an opportunity is a combination of a collaborator, a need, a solution, and a model.
00:39:24.013 --> 00:39:28.073
We look at all those things together and say, you know, does it look like,
00:39:28.213 --> 00:39:31.853
does it smell like an opportunity that is an Inventure Nuka?
00:39:32.453 --> 00:39:35.213
And a lot of times we can say it's not a great fit for us.
00:39:35.913 --> 00:39:38.753
There's some commercial value out there for someone else in another model,
00:39:38.953 --> 00:39:42.253
and here's what we learned about it, but it's not for us, right?
00:39:42.413 --> 00:39:46.793
And then very quickly, we focus on what we call the critical factors.
00:39:46.933 --> 00:39:53.213
And these are both critical success factors that we have to ensure are enabled
00:39:53.213 --> 00:39:57.313
to find success and critical risk factors that we need to be able to address
00:39:57.313 --> 00:39:59.073
to manage to find that success.
00:39:59.433 --> 00:40:03.913
So, you know, each of those phases focus on a different thing,
00:40:04.133 --> 00:40:08.173
but always with the perspective of trying to understand what's most important
00:40:08.173 --> 00:40:10.353
to make the fastest, best decision.
00:40:11.449 --> 00:40:14.789
Yeah, and one quick build on that too, Colin, because I know you also asked
00:40:14.789 --> 00:40:16.489
the question on the TRL side of things.
00:40:16.709 --> 00:40:21.169
Because we are typically looking at technologies, what we're focused on is,
00:40:21.329 --> 00:40:25.349
you know, a robust proof of concept that has some ability to show that it does
00:40:25.349 --> 00:40:28.289
solve the underlying unmet need that we're looking for,
00:40:28.469 --> 00:40:31.909
right, is kind of the stage that we look for it to be about.
00:40:32.129 --> 00:40:35.469
And, you know, there's flexibility on both sides and that depending on the opportunity,
00:40:35.649 --> 00:40:37.509
but generally speaking, that's what we're looking for.
00:40:38.469 --> 00:40:41.749
Yeah, and I'll just say one last quick thing to build on that point.
00:40:41.909 --> 00:40:43.789
It's a great one, Nicole, thank you.
00:40:44.089 --> 00:40:50.129
Is that, you know, these opportunities that come to us are projects that have
00:40:50.129 --> 00:40:55.449
already been developed, you know, say internally at a multinational or somewhere
00:40:55.449 --> 00:40:56.729
in their innovation ecosystem,
00:40:57.409 --> 00:41:02.589
that it's not, we don't start with an idea and need to develop a technology
00:41:02.589 --> 00:41:05.309
as a solution to a need, right?
00:41:05.369 --> 00:41:07.869
It comes to us partially baked, already.
00:41:08.569 --> 00:41:12.229
And then our job is to prototype the company.
00:41:12.509 --> 00:41:20.009
And if your goals and outcomes that you're looking for are more related to internal
00:41:20.009 --> 00:41:21.329
development of technology,
00:41:21.329 --> 00:41:28.649
then you absolutely need to put in the right sort of metrics and stop points and check-ins to say,
00:41:28.769 --> 00:41:35.649
have we reached a sufficient TRL to sufficiently reduce the technical risk of
00:41:35.649 --> 00:41:37.169
future development or not?
00:41:37.509 --> 00:41:41.849
And so, again, what makes sense for your situation? I'm sure Ellie and Nicole
00:41:41.849 --> 00:41:46.149
will be going over lots of ways that you can kind of think through how some
00:41:46.149 --> 00:41:50.289
of these concepts apply to your particular situation. But that's one way to think about it.
00:41:51.356 --> 00:41:53.756
All right, great. So we've got a couple more questions here.
00:41:53.996 --> 00:41:56.156
So this one's a two-parter.
00:41:56.516 --> 00:42:01.896
So first, what differentiates you all from other venture firms?
00:42:02.156 --> 00:42:07.016
And then also, just if you could touch on what challenges you've seen for chemical
00:42:07.016 --> 00:42:14.256
or hardware manufacturing companies facing in terms of commercialization versus software firms.
00:42:14.756 --> 00:42:18.936
I can cover the first part, which is, you know, what's what differentiates us
00:42:18.936 --> 00:42:20.736
from other venture firms.
00:42:21.156 --> 00:42:25.936
So and team, please feel free to build on my response. So I think a big difference
00:42:25.936 --> 00:42:29.236
and a fundamental difference is that we're focused on technology,
00:42:29.356 --> 00:42:30.456
not on the company, right?
00:42:30.536 --> 00:42:35.136
We call ourselves a technology commercialization platform, as we found fund,
00:42:35.276 --> 00:42:37.256
operate and scale our new coast.
00:42:37.496 --> 00:42:42.256
And our process tends to be a lot more robust as I focus on really understanding
00:42:42.256 --> 00:42:44.216
the technology from the beginning to end.
00:42:44.256 --> 00:42:49.556
And as Nicole mentioned, we've looked at over 100 opportunities and the fact
00:42:49.556 --> 00:42:52.996
that we have four new codes in the end shows that we're not really spreading
00:42:52.996 --> 00:42:55.476
our bets and risks with the portfolio approach,
00:42:55.636 --> 00:43:01.276
but rather really focusing on the analysis and going deeply into that.
00:43:01.276 --> 00:43:05.436
Another differentiator is that a lot of times there's a focus,
00:43:05.676 --> 00:43:10.456
especially in the venture capital world, around funding on the R&D as these
00:43:10.456 --> 00:43:12.056
are very early on startups.
00:43:12.296 --> 00:43:17.956
And what we do, as we previously mentioned, is that we can really partner and
00:43:17.956 --> 00:43:21.796
leverage the R&D of the multinational collaborators.
00:43:21.856 --> 00:43:28.056
So we're able to bypass that and focus on founding funding and scaling our new
00:43:28.056 --> 00:43:32.616
co. So that's another big differentiator compared to the other venture firms.
00:43:33.596 --> 00:43:39.076
Yeah, and let me just highlight in bright neon sign, a big differentiator between
00:43:39.076 --> 00:43:41.936
us and other venture firms is that we're not a venture firm.
00:43:42.476 --> 00:43:46.856
That's the sort of fundamental difference. What we are is an operating platform
00:43:46.856 --> 00:43:53.916
because we don't have a bucket of money that we invest in other people's companies and build a portfolio.
00:43:53.916 --> 00:43:57.796
We found fund operate
00:43:57.796 --> 00:44:00.816
and scale every company so it's the operational
00:44:00.816 --> 00:44:03.696
expertise that we bring to
00:44:03.696 --> 00:44:07.216
the table as we establish the company we're founders
00:44:07.216 --> 00:44:13.296
we're the serial entrepreneurs who also fund it and who also operate it and
00:44:13.296 --> 00:44:18.436
we scale each company so that's that's a pretty fundamental difference i think
00:44:18.436 --> 00:44:23.656
and then with respect to the second part of the question in in sort of you sometimes
00:44:23.656 --> 00:44:25.016
referred to as deep tech,
00:44:25.476 --> 00:44:30.596
sort of real physical things like chemicals, manufacturing versus software.
00:44:31.576 --> 00:44:35.656
For us, we find those things are actually better fits for our model.
00:44:36.737 --> 00:44:47.317
It is in the way that we execute, it's much harder to both evaluate the game-changing
00:44:47.317 --> 00:44:53.357
nature of something that's purely digital or software kind of solution a priori.
00:44:53.497 --> 00:44:57.217
So before you start, it's hard to necessarily define that.
00:44:57.517 --> 00:45:01.937
And we have found that it's even harder to make and maintain the competitive
00:45:01.937 --> 00:45:03.597
advantage that you need over time.
00:45:03.597 --> 00:45:08.137
Whereas for things like chemical industry or manufacturing,
00:45:08.537 --> 00:45:16.117
which we have multiple Nucos that do those things, we find that it's easier
00:45:16.117 --> 00:45:22.077
to pinpoint the elements that really drive value as you change the game.
00:45:22.077 --> 00:45:28.617
And so as we're building to those things that deliver unique benefits and have
00:45:28.617 --> 00:45:34.357
differentiated value creation for customers, we're able to really protect that whole path.
00:45:34.557 --> 00:45:39.237
And then ultimately, because we're also funding, these are real assets that
00:45:39.237 --> 00:45:45.197
you can use in your capital strategy in a way that you aren't always able to
00:45:45.197 --> 00:45:47.177
do in something like software.
00:45:47.177 --> 00:45:50.817
So there are a lot of interesting differences in those approaches,
00:45:50.817 --> 00:45:56.897
and we find more opportunities in those kind of areas than in software.
00:45:57.057 --> 00:46:00.377
Obviously, we've only started companies that are in those areas.
00:46:01.619 --> 00:46:04.499
All right. We've got two last questions here before we wrap.
00:46:04.819 --> 00:46:10.799
So the first one is, do you raise funds for each new co and have LPs for each investment?
00:46:11.999 --> 00:46:15.139
That's the first question. Then we'll go to the next. Yeah, sure.
00:46:15.499 --> 00:46:25.659
So no, again, we're not a venture firm that's structured around having a venture fund where we're the GP.
00:46:25.859 --> 00:46:30.759
We have LPs that invest into it, and then we deploy capital across a portfolio.
00:46:31.319 --> 00:46:36.259
We did actually earlier in our growth,
00:46:36.259 --> 00:46:42.259
we had a captive fund where we were the GP and we had LPs that invested across
00:46:42.259 --> 00:46:44.219
the companies that we had founded,
00:46:44.219 --> 00:46:49.619
but we have changed our capital structure as was mentioned in the second part
00:46:49.619 --> 00:46:53.639
of the question where InVenture itself recently went public.
00:46:53.879 --> 00:47:00.059
And so now we have a public funding platform and it's our intention by and large
00:47:00.059 --> 00:47:07.279
to fund each of our operating companies as far into their progression as makes the appropriate sense.
00:47:07.459 --> 00:47:12.779
And when it makes sense to raise outside capital, especially strategic capital
00:47:12.779 --> 00:47:17.139
at the right time for the right scaling reasons, for the right strategy,
00:47:17.439 --> 00:47:19.319
we'll entertain that if it's the right time.
00:47:19.499 --> 00:47:25.779
But one of the things that's interesting is that because we're not structured like a venture firm.
00:47:26.639 --> 00:47:34.599
We're not driven to require an exit to drive liquidity for each of our companies.
00:47:34.879 --> 00:47:41.839
So for us, we're able to invest and hold each of the companies we start so that
00:47:41.839 --> 00:47:45.419
we are invested in the long-term success of each company.
00:47:45.619 --> 00:47:51.139
And we're able to figure out how to drive that growth over a much longer timeframe
00:47:51.139 --> 00:47:57.519
that can ultimately, in various ways, drive the investor returns back for Inventure and our investors.
00:47:58.802 --> 00:48:00.962
All right. Last question. You know, do you look internationally?
00:48:01.922 --> 00:48:03.142
Yeah, I could take this one.
00:48:03.482 --> 00:48:09.382
So we do look internationally just by nature of our partners being multinational corporations.
00:48:09.842 --> 00:48:13.402
There are all of our opportunities we take a global lens to.
00:48:14.222 --> 00:48:17.882
The majority of our core team is based here in the U.S., so there is always
00:48:17.882 --> 00:48:20.042
that lens, but we are global.
00:48:20.782 --> 00:48:24.342
And we do also do, I know the other part of the question here is related to
00:48:24.342 --> 00:48:28.482
doing research to really understand the value proposition ultimately in the
00:48:28.482 --> 00:48:31.742
U.S. and globally, and that is absolutely a part of our process.
00:48:32.042 --> 00:48:36.002
It can depend on, you know, the particular opportunity when we might trigger
00:48:36.002 --> 00:48:40.722
a level of research such as that in our process, but it's definitely a part of our process.
00:48:40.962 --> 00:48:44.582
You know, we get what I like to call like a treasure trove of deep research
00:48:44.582 --> 00:48:48.382
from our partners, but there's always a next level of detail to believe that
00:48:48.382 --> 00:48:52.802
we need to do as well to further validate the opportunity against our model
00:48:52.802 --> 00:48:54.662
and with our strategic initiatives in mind.
00:48:55.562 --> 00:49:01.702
And I'll just add a last point to that, that not only do we have multinationals
00:49:01.702 --> 00:49:03.662
who are based all over the globe,
00:49:03.662 --> 00:49:09.642
we look at opportunities that come from teams that are all over the place,
00:49:09.642 --> 00:49:14.922
and every one of the companies that we start is intended to be global.
00:49:15.302 --> 00:49:21.982
So we certainly do not restrict ourselves to a market unnecessarily constraining ourselves.
00:49:22.202 --> 00:49:26.082
We're looking for the global opportunity.
00:49:26.982 --> 00:49:34.122
All right. So let's go ahead and wrap there. So huge thank you to Colin, Ellie, and Nicole.
00:49:34.522 --> 00:49:37.262
Really appreciate you taking the time to share with us today.
00:49:37.482 --> 00:49:39.162
And thanks to everyone who joined the webinar.
00:49:39.522 --> 00:49:43.042
And yeah, you'll be receiving the recording shortly. Thanks,
00:49:43.162 --> 00:49:44.342
everyone. Have a great afternoon.
00:49:44.862 --> 00:49:47.062
Thanks. Thank you very much. Bye-bye.