Mysteries of innovation

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Mark Harris, CEO Innovaventures
Presentation @ European Innovation Academy Summer 2013 Edition

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Mysteries of innovation

  1. 1. 1 Prof. Dr. Sc. math. Dr. h.c. Mark Harris CEO and Founder Adjunct Professor for Technology Entrepreneurship & Innovation “mysteries of innovation” European Innovation Academy Tallinn, 9 July 2013 ™
  2. 2. 2 © innoVaventures All rights reserved ™ Lecture Series 1. mysteries turn science? 2. Innovation and Entrepreneurship 3. The Professional Entrepreneur, The Entrepreneurial Venture 4. Venture & Growth Capital 5. The Innovator’s Dilemma
  3. 3. 3 © innoVaventures All rights reserved ™ mysteries turn science?
  4. 4. 4 © innoVaventures All rights reserved ™ Is this an innovation ?
  5. 5. 5 © innoVaventures All rights reserved ™ Is this an innovation ?
  6. 6. 6 © innoVaventures All rights reserved ™ Is this an innovation ?
  7. 7. 7 © innoVaventures All rights reserved ™ Is this an innovation ?
  8. 8. 8 © innoVaventures All rights reserved ™
  9. 9. 9 © innoVaventures All rights reserved ™ What is Science ? Science (from Latin scientia, meaning "knowledge”) is a systematic enterprise that builds and organizes knowledge in the form of testable explanations and predictions about the universe. In an older and closely related meaning, "science" also refers to a body of knowledge itself, of the type that can be rationally explained and reliably applied. A practitioner of science is known as a scientist. (Source: Wikipedia)
  10. 10. 10 © innoVaventures All rights reserved ™ Math: 2 + 2 = 4 2 + 2 = 4 …. All the time…. Testable, explainable, predictable, reliable 100% of the time.
  11. 11. 11 © innoVaventures All rights reserved ™ Physics: Testable Explainable Predictable reliable 100% of the time ? In Physics most experiments work 95% of the time. 200 years ago, it was maybe 60% of the time. Enough not to be random, but still too complex to understand and control all of the complexities. Even recently CERN had to do more than 1 trillion collisions to be able to prove the Higgs boson subatomic particle.
  12. 12. 12 © innoVaventures All rights reserved ™ Entrepreneurship: One must recognize that the field of start-ups and entrepreneurship is not yet a «pure» science. Outcomes cannot yet be guaranteed. Entrepreneurship is more like Physics 200 years ago. There is enough knowledge and expertise to be able to get satisfactory results, but still not enough to be as predictive as Mathematics. Most expertise has been acquired through years of “experimenting” and “evaluating”.
  13. 13. 13 © innoVaventures All rights reserved ™ 2. Innovation and Entrepreneurship
  14. 14. 14 © innoVaventures All rights reserved ™ What is innovation ? Innovation is an invention, paired with a process and a market invention marketprocess Entrepreneurship
  15. 15. 15 © innoVaventures All rights reserved ™ Light Bulb Hall of Fame
  16. 16. 16 © innoVaventures All rights reserved ™ Computer Hall of Fame
  17. 17. 17 © innoVaventures All rights reserved ™ Technology Entrepreneurship The New Way Forwards EUR Observations: • EU 2020 declaration highly focussed (#1 issue) on innovation and entrepreneurship. • Invention (ideas,patents ) is good, but commercialization is not. • Very low VC activity in EU (1/5th US), huge equity GAP • Attitude of entrepreneurship and failure not being an option a big hindering factor. • Need to catch-up on some 20+ years of entrepreneurship education • Need to broaden where and how entrepreneurship is taught • Need to get EU success rates (20%) close to US (30%). Criteria US Europe Comparison Comment GDP (2010) 14.66 T$ 14.82 T$ Economies in same Ballpark Domestic Patents (2009) 82000 135000 Europe invents +65% more (actually much more because no SW patents in Europe, CII) VC activity (H1’2010) 12.4 B$ 2.6 B$ Europe only ~ 1/5th the VC % of population that consider entrepreneurship 67% 45% US is 50% higher % of Population that become entrepreneurs 13% 4.5% US is 289% higher % of population that accept possible failure in a startup 75% 54% US 40% higher Entrepreneurship Education since 1980’s Early 2000’s Trying to catch up 20- 25years of Education and attitude Breadth (# types) 8 1-2 Programs in HE and now starting in K12
  18. 18. 18 © innoVaventures All rights reserved ™ To increase/accelerate innovation: invention marketprocess Entrepreneurship Increase #inventions = research Address diverse markets Learn this and get this right
  19. 19. 19 © innoVaventures All rights reserved ™ How to Peel a Banana ?
  20. 20. 20 © innoVaventures All rights reserved ™ How to Peel a Banana ? What did we learn? 1. There are always many solutions to a problem 2. Some solutions are “better” than others 3. Usually the “better” solutions come from experience 4. Sometimes we choose based on prejudices
  21. 21. 21 © innoVaventures All rights reserved ™ What is Entrepreneurship ? What is Technology Entrepreneurship ?
  22. 22. 22 © innoVaventures All rights reserved ™ Entrepreneurship is: A process Not a person About BIG companies that happen to be small Not about small business Important to BIG business
  23. 23. 23 © innoVaventures All rights reserved ™ What is Entrepreneurship ? „The pursuit of opportunity beyond the resources one currently has under control“. * * Source: Professor Howard Stevenson
  24. 24. 24 © innoVaventures All rights reserved ™ Entrepreneurship Bridges the Gap Technology/ Opportunity ValueEntrepreneurship
  25. 25. 25 © innoVaventures All rights reserved ™ What is Technology Entrepreneurship ? Cash Flow II III IVI t The technical invention The company The business innovation Needed: Technology Entrepreneurship Skills Management Skills (MBA etc) So Technology Entrepreneurship is not only „What“, but also „When“ !! Derived: Prof. Jerry Engel UC Berkeley Enhanced: Prof. Dr. Mark Harris
  26. 26. 26 © innoVaventures All rights reserved ™ The Entrepreneurial Process
  27. 27. 27 © innoVaventures All rights reserved ™ The Entrepreneurial Process Identify • Need • Solution • ‘Unfair Advantage’ Acquire • Technology rights • People • Money Resources Opportunity
  28. 28. 28 © innoVaventures All rights reserved ™ The Entrepreneur’s Task…. Key Resources • Technology • Money • People People MoneyTechnology
  29. 29. 29 © innoVaventures All rights reserved ™ Who is the Professional Entrepreneur? Personal Entrepreneurship Styles Entrepreneurship is a team sport • Many can play – even if they are not ‘born’ entrepreneurs Three modes • Lead • Follow • Execute Three functions • Create • Manage • Innovate Which role is right for you?
  30. 30. 30 © innoVaventures All rights reserved ™ Personal Entrepreneurship Styles: Modes: Lead or Follow Lead Follow Execute High Performance entrepreneurial teams are : • Self organizing • Flexible • Self disciplined • Common goal • Common priorities • Common values • Enabled by shared ownership Same people may play different roles on different teams within the same company
  31. 31. 31 © innoVaventures All rights reserved ™ Personal Entrepreneurship Styles Functions: Create or Manage Innovation requires a combination of creativity and management – brought by a team • Creation requires the greatest technical competency • Management requires technical affinity • Different functions are best suited for different people. • Functions rarely are exchanged • All collaborate in BOTH dimensionsManage Create Innovate
  32. 32. 32 © innoVaventures All rights reserved ™ Entrepreneurship is a Team Sport Results are What Count Innovation Execution Entrepreneurship High performance technology entrepreneurship • Is a BLEND of Innovation and Execution • Requires collaboration and discipline • It is best performed by a team • Alignment of incentives directly and dramatically related to the outcome
  33. 33. 33 © innoVaventures All rights reserved ™ Who is the Entrepreneur? Manager, administrator Entre- preneurInventor Promoter Creativity and innovation General management skills, business know-how, and networks High High Low Low Source: J. Timmons, New Venture Creation, p. 25.
  34. 34. 34 © innoVaventures All rights reserved ™ The Importance of Teamwork Entrepreneurship is a team sport
  35. 35. 35 © innoVaventures All rights reserved ™ 2. The Professional Entrepreneur, The Entrepreneurial Venture
  36. 36. 36 © innoVaventures All rights reserved ™ The Professional Entrepreneur Cash Flow II III IVI t The technical innovation The company The business innovation Needed: Technology Entrepreneurship Skills Entrepreneurship Skills (MBA etc) Visioning the Future into the Present
  37. 37. 37 © innoVaventures All rights reserved ™ The Professional Entrepreneur Cash Flow II III IVI t The technical innovation The company The business innovation Needed: Technology Entrepreneurship Skills Entrepreneurship Skills (MBA etc) Zone of Collaboration Zone of Competition
  38. 38. 38 © innoVaventures All rights reserved ™ The Entrepreneurial Venture FOUR PERIODS of DEVELOPMENT
  39. 39. 39 © innoVaventures All rights reserved ™ The Entrepreneurial Venture FOUR PERIODS of DEVELOPMENT Cash Flow II III IVI t The technical innovation The company The business innovation Needed: Technology Entrepreneurship Skills Entrepreneurship Skills (MBA etc)
  40. 40. 40 © innoVaventures All rights reserved ™ The Entrepreneurial Venture Attributes that characterize each Phase Period I: Pure Entrepreneurship Period II: Strategic Focus Period III: System Building Period IV: Coporate Management Defining the concept of the business What business aren’t we in? Finacial Controls Hiring „outsider“ Gathering Financial Resources IMPLEMENTING the business we are in! Stable division of labor Going Public Assembling the startup Team Knowing better than ANYONE else: Reporting relationship and authorities Making acquistitions Identifying customers What will people pay Developing systems of internal control Adding the follow-on Products(s) Analyzing the competition How many will they buy Formalizing the terms of a sale Shedding those who can‘t keep up Building the prototype How to distribute Operational systems Formalizing the culture Getting your first customer How to service the customer Production, Outsourcing Rationalizing the strategy Distribution, Sales Service, Warranties *Source: Professor John Freeman Professor Jerry Engel UC Berkeley Cash Flow II III IVI t The technical innovation The company The business innovation Needed: Technology Entrepreneurship Skills Entrepreneurship Skills (MBA etc)
  41. 41. 41 © innoVaventures All rights reserved ™ The Entrepreneurial Venture Attributes that characterize each Phase Period I: Pure Entrepreneurship Period II: Strategic Focus Period III: System Building Period IV: Coporate Management Defining the concept of the business What business aren’t we in? Finacial Controls Hiring „outsider“ Gathering Finacial Resources IMPLEMENTING the business we are in! Stable division of labor Going Public Assembling the startup Team Knowing better than ANYONE else: Reporting relationship and authorities Making acquistitions Identifying customers What will people pay Developing systems of internal control Adding the follow-on Products(s) Analyzing the competition How many will they buy Formalizing the terms of a sale Shedding those who can‘t keep up Building the prototype How to distribute Operational systems Formalizing the culture Getting your first customer How to service the customer Production, Outsourcing Rationalizing the strategy Distribution, Sales Service, Warranties *Source: Professor John Freeman Professor Jerry Engel UC Berkeley Cash Flow II III IVI t The technical innovation The company The business innovation Needed: Technology Entrepreneurship Skills Entrepreneurship Skills (MBA etc)
  42. 42. 42 © innoVaventures All rights reserved ™ The Entrepreneurial Venture Attributes that characterize each Phase Period I: Pure Entrepreneurship Period II: Strategic Focus Period III: System Building Period IV: Coporate Management Defining the concept of the business What business aren’t we in? Finacial Controls Hiring „outsider“ Gathering Finacial Resources IMPLEMENTING the business we are in! Stable division of labor Going Public Assembling the startup Team Knowing better than ANYONE else: Reporting relationship and authorities Making acquistitions Identifying customers What will people pay Developing systems of internal control Adding the follow-on Products(s) Analyzing the competition How many will they buy Formalizing the terms of a sale Shedding those who can‘t keep up Building the prototype How to distribute Operational systems Formalizing the culture Getting your first customer How to service the customer Production, Outsourcing Rationalizing the strategy Distribution, Sales Service, Warranties *Source: Professor John Freeman Professor Jerry Engel UC Berkeley Cash Flow II III IVI t The technical innovation The company The business innovation Needed: Technology Entrepreneurship Skills Entrepreneurship Skills (MBA etc)
  43. 43. 43 © innoVaventures All rights reserved ™ The Entrepreneurial Venture Attributes that characterize each Phase Period I: Pure Entrepreneurship Period II: Strategic Focus Period III: System Building Period IV: Coporate Management Defining the concept of the business What business aren’t we in? Finacial Controls Hiring „outsider“ Gathering Finacial Resources IMPLEMENTING the business we are in! Stable division of labor Going Public Assembling the startup Team Knowing better than ANYONE else: Reporting relationship and authorities Making acquistitions Identifying customers What will people pay Developing systems of internal control Adding the follow-on Products(s) Analyzing the competition How many will they buy Formalizing the terms of a sale Shedding those who can‘t keep up Building the prototype How to distribute Operational systems Formalizing the culture Getting your first customer How to service the customer Production, Outsourcing Rationalizing the strategy Distribution, Sales Service, Warranties *Source: Professor John Freeman Professor Jerry Engel UC Berkeley Cash Flow II III IVI t The technical innovation The company The business innovation Needed: Technology Entrepreneurship Skills Entrepreneurship Skills (MBA etc)
  44. 44. 44 © innoVaventures All rights reserved ™ The Professional Entrepreneur Cash Flow II III IVI t The technical innovation The company The business innovation Needed: Technology Entrepreneurship Skills Entrepreneurship Skills (MBA etc) Visioning the Future into the Present
  45. 45. 45 © innoVaventures All rights reserved ™ 3. Venture & Growth Capital
  46. 46. 46 © innoVaventures All rights reserved ™ New Venture Funding Stream Sales$ time $1 Cash Flow $20 $40 IPO $80 $8 Venture Capital Rounds
  47. 47. 47 © innoVaventures All rights reserved ™ Structuring the Financing The “Why” of multiple rounds Management Technology/Product Marketing Time Value is a Step Function: Value
  48. 48. 48 © innoVaventures All rights reserved ™ Adding Technology Value Value Time Concept Feasibility or Prototype Patent Application Working Prototype Manufacturing Prototype Regulatory Approvals Market Introduction
  49. 49. 49 © innoVaventures All rights reserved ™ Adding Market Value Value Time Market Analysis - Published Data Qualitative Research (Focus Groups) Surveys/Concept Testing Technical Reports Published Market Launch Satisfied Customers Backlog Beta Test
  50. 50. 50 © innoVaventures All rights reserved ™ Adding Management Value Value Time Chief Technologist President Marketing Vice President Controller Manufacturing Vice President Chief Financial Officer Human Resources Mgr Sales Manager
  51. 51. 51 © innoVaventures All rights reserved ™ The Entrepreneurial Venture FOUR PERIODS of DEVELOPMENT Time Cash Flow II III IVI
  52. 52. 52 © innoVaventures All rights reserved ™ Valuation in Steps II III IVI Time Concept Defined Early Validation Market Traction Scale Validated Predictable Scale
  53. 53. 53 © innoVaventures All rights reserved ™ Staged Financing Concept Defined Early Validation Market Traction Scale Validated Predictable Scale II III IVI Time Seed Series A Series B Series “n” IPO
  54. 54. 54 © innoVaventures All rights reserved ™ Venture Capital Investment Capital for Entrepreneurial Ventures tends to clump • By Region • By Industry It is important to encourage local investment in Entrepreneurial Ventures
  55. 55. 55 © innoVaventures All rights reserved ™ ,0 1000,0 2000,0 3000,0 4000,0 5000,0 6000,0 Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Investment($millions) Quarter Venture Investment, US & Europe Europe North America Perspective on European Market Overall Investment Source: BLN Business Leaders Network US Venture investment comes back strong. Europe’s lowest for 5 years (632M$).
  56. 56. 56 © innoVaventures All rights reserved ™ EBAN: European Business Angels Flash report 5.7.2013
  57. 57. 57 © innoVaventures All rights reserved ™ EBAN: European Business Angels Flash report 5.7.2013
  58. 58. 58 © innoVaventures All rights reserved ™ Growth Capital
  59. 59. 59 © innoVaventures All rights reserved ™ Company Formation Founders A, B and C each purchase 1M shares of Common Stock at a purchase price of $.001 per share. Person Shares % Total Value Founder A 1,000,000 33.3% $1,000 Founder B 1,000,000 33.3% $1,000 Founder C 1,000,000 33.3% $1,000 totals 3,000,000 100% Post-Money Valuation $3,000
  60. 60. 60 © innoVaventures All rights reserved ™ Person Shares % Total Value Founder A 1,000,000 20.0% $10,000 Founder B 1,000,000 20.0% $10,000 Founder C 1,000,000 20.0% $10,000 President 1,000,000 20.0% $10,000 Option Plan 1,000,000 20.0% $10,000 totals 5,000,000 100% Post-Money Valuation $50,000 Hiring a President/CEO Creation of an Option Plan The company hires a chief executive officer who purchases 1M shares of Common Stock at a purchase price of $.01 per share. Additionally, in order to attract additional key employees, the Company establishes an employee stock option plan and reserves 1M shares of Common Stock for issuance under this plan. The pre-financing valuation is $30,000.
  61. 61. 61 © innoVaventures All rights reserved ™ Initial Venture Capital Round $5,000,000 venture capital financing at a purchase price of $1 per share, representing a pre-financing valuation of $5,000,000 (5M shares with a value of $1 per share). The new shares are typical venture capital Series A Preferred Stock, with each share of Series A Preferred Stock being convertible into one share of Common Stock. Person Shares % Total Value Founder A 1,000,000 10.0% $1,000,000 Founder B 1,000,000 10.0% $1,000,000 Founder C 1,000,000 10.0% $1,000,000 President 1,000,000 10.0% $1,000,000 Option Plan 1,000,000 10.0% $1,000,000 Series A Inv 5,000,000 50.0% $5,000,000 totals 10,000,000 100% Post-Money Valuation $10,000,000
  62. 62. 62 © innoVaventures All rights reserved ™ Series B Preferred Financing $10,000,000 Series B Preferred Stock financing at a purchase price of $2 per share, representing a pre-financing valuation of $20,000,000 (10M shares with a value of $2 per share). Like the Series A Preferred Stock, each share of Series B Preferred Stock is convertible into one share of Common Stock. Person Shares % Total Value Founder A 1,000,000 6.7% $2,000,000 Founder B 1,000,000 6.7% $2,000,000 Founder C 1,000,000 6.7% $2,000,000 President 1,000,000 6.7% $2,000,000 Option Plan 1,000,000 6.7% $2,000,000 Series A Inv 5,000,000 33.3% $10,000,000 Series B Inv 5,000,000 33.3% $10,000,000 totals 15,000,000 100% Post-Money Valuation $30,000,000 Person Founder A Founder B Founder C President Option Plan Series A Inv Series B Inv Post Financing Valuation
  63. 63. 63 © innoVaventures All rights reserved ™ Initial Public Offering (IPO) A total of 5M shares to be sold in the offering, including 3M shares sold by the Company and 1M shares sold by each of the Series A and Series B investors. Shares will be sold at a price of $10 per share, representing a pre-financing valuation of $150,000,000 (15M shares with a value of $10 per share.) Series A and Series B Preferred Stock automatically converted into Common Stock. All shares sold in offering will be Common Stock. Note that the interest of each founder has decreased from 33.33% at the Company’s formation to 5.55% following the IPO. However, the value of the interest of each founder has increased from $1,000 to $10,000,000. Person Shares % Total Value Founder A 1,000,000 5.6% $10,000,000 Founder B 1,000,000 5.6% $10,000,000 Founder C 1,000,000 5.6% $10,000,000 President 1,000,000 5.6% $10,000,000 Option Plan 1,000,000 5.6% $10,000,000 Series A Inv 4,000,000 22.2% $40,000,000 Series B Inv 4,000,000 22.2% $40,000,000 Public IPO 5,000,000 27.8% $50,000,000 totals 18,000,000 100% Post-Money Valuation $180,000,000
  64. 64. 64 © innoVaventures All rights reserved ™ Concept Defined Early Validation Market Traction Scale Validated Predictable Scale II III IVI Time Seed Series A Series B Series “N” IPO Growing the Equity Pie Person Shares % Total Value Founder A 1,000,000 33.3% $1,000 Founder B 1,000,000 33.3% $1,000 Founder C 1,000,000 33.3% $1,000 totals 3,000,000 100% Post-Money Valuation $3,000
  65. 65. 65 © innoVaventures All rights reserved ™ Concept Defined Early Validation Market Traction Scale Validated Predictable Scale II III IVI Time Seed Series A Series B Series “N” IPO Growing the Equity Pie Person Shares % Total Value Founder A 1,000,000 20.0% $10,000 Founder B 1,000,000 20.0% $10,000 Founder C 1,000,000 20.0% $10,000 President 1,000,000 20.0% $10,000 Option Plan 1,000,000 20.0% $10,000 totals 5,000,000 100% Post-Money Valuation $50,000
  66. 66. 66 © innoVaventures All rights reserved ™ Concept Defined Early Validation Market Traction Scale Validated Predictable Scale II III IVI Time Seed Series A Series B Series “N” IPO Growing the Equity Pie Person Shares % Total Value Founder A 1,000,000 10.0% $1,000,000 Founder B 1,000,000 10.0% $1,000,000 Founder C 1,000,000 10.0% $1,000,000 President 1,000,000 10.0% $1,000,000 Option Plan 1,000,000 10.0% $1,000,000 Series A Inv 5,000,000 50.0% $5,000,000 totals 10,000,000 100% Post-Money Valuation $10,000,000
  67. 67. 67 © innoVaventures All rights reserved ™ Concept Defined Early Validation Market Traction Scale Validated Predictable Scale II III IVI Time Seed Series A Series B Series “N” IPO Growing the Equity Pie Person Shares % Total Value Founder A 1,000,000 6.7% $2,000,000 Founder B 1,000,000 6.7% $2,000,000 Founder C 1,000,000 6.7% $2,000,000 President 1,000,000 6.7% $2,000,000 Option Plan 1,000,000 6.7% $2,000,000 Series A Inv 5,000,000 33.3% $10,000,000 Series B Inv 5,000,000 33.3% $10,000,000 totals 15,000,000 100% Post-Money Valuation $30,000,000 Pe Fo Fo Fo Pre Op Se Se F
  68. 68. 68 © innoVaventures All rights reserved ™ Concept Defined Early Validation Market Traction Scale Validated Predictable Scale II III IVI Time Seed Series A Series B Series “N” IPO Growing the Equity Pie Person Shares % Total Value Founder A 1,000,000 5.6% $10,000,000 Founder B 1,000,000 5.6% $10,000,000 Founder C 1,000,000 5.6% $10,000,000 President 1,000,000 5.6% $10,000,000 Option Plan 1,000,000 5.6% $10,000,000 Series A Inv 4,000,000 22.2% $40,000,000 Series B Inv 4,000,000 22.2% $40,000,000 Public IPO 5,000,000 27.8% $50,000,000 totals 18,000,000 100% Post-Money Valuation $180,000,000
  69. 69. 69 © innoVaventures All rights reserved ™69 5. The Innovator’s Dilemma Recommended Literature: Open Innovation Henry Chesbrough ISBN 1-57851-837-7
  70. 70. 70 © innoVaventures All rights reserved ™70 The Innovators Dilemma (Intro) Source: The Innovator‘s Dilemma Clayton M. Christensen The Impact of Sustaining and Disruptive Technological Change t ProductPerformance P Performance Demanded At the high end of the market Performance Demanded At the low end of the marketDisruptive Technological innovation Revolutionary Innovation
  71. 71. 71 © innoVaventures All rights reserved ™71 ProductPerformance Time or Engineering Effort “Sustaining” Technological Innovation Big Companies Need A Continuous Process First Technology Second Technology Third Technology Strategy: Using Small Markets as “Beach Heads” Source: Clayton M. Christensen, “Exploring the Limits of the Technology S-Curve. Part I: Component Technologies,” Production and Operations Management 1, no. 4 (Fall 1992): 340. Reprinted by permission.
  72. 72. 72 © innoVaventures All rights reserved ™72 Source: Clayton M. Christensen, “Exploring the Limits of the Technology S-Curve. Part I: Component Technologies,” Production and Operations Management 1, no. 4 (Fall 1992): 361. Reprinted by permission. PerformanceasDefinedinApplication“A” Time or Engineering Effort PerformanceasDefinedinApplication“B” Application (Market) “A” Application (Market) “B” Disruptive Technology takes over the larger established market! Older BIG company playing catch-up New entrant dominates Technology 2 Technology 1 Disruptive Technology • new market niche • small markets • small companies Strategy: Using Small Markets as “Beach Heads”
  73. 73. 73 © innoVaventures All rights reserved ™ Literature: Accompanying Literature: Timmons/Spinelli New Venture Creation ISBN 978-007-125438-0 Steven Gary Blank The Four Steps to the Epiphany ISBN 0-9764707-0-5 Geoffrey A. Moore Crossing the Chasm ISBN 0-88730-717-5 Clayton M. Christensen The Innovator’s Dilemma ISBN 0-87584-585-1 Henry Chesbrough Open Innovation ISBN 1-57851-837-7 Recommended Literature: David J. Teece Managing Intellectual Capital ISBN 0-19-829-542-1 Annalee Saxenian Regional Advantage ISBN 0-674-75340-2 > www.innovaventures.com >NEWS>Blog>24 October American University in Bulgaria 3 Youtube Videos about 5 hours total.
  74. 74. 74 ™ Your path to success !!!
  75. 75. 75 © innoVaventures All rights reserved ™ Backup
  76. 76. 76 © innoVaventures All rights reserved ™76 Slide: Question: What is the shortest distance between points A and B ? Sure, a straight line: A B as long as we are in two dimensional space.... in three dimensional space, for example on a globe it is the GREAT Circle (ARC) A short excursion in Math:
  77. 77. 77 © innoVaventures All rights reserved ™ Slide: The Path (Trail) to New Ventures Start(up) Gazelle loop forever So what is the shortest path for a new venture ?
  78. 78. 78 © innoVaventures All rights reserved ™ Phase 4 Angel Funding infrastructure Phase 3 1st real BizPlans Summer schools Bootcamps Seed Funding Phase 2 Coaching Consulting Mentoring Experimental labs Industry connections Phase 1 entrepreneurship education, Educational BizPlan Competitions Phase 5 VC / further scale Educational Process Real-life practice Real companie s helps you to bridge the GAP !!™ Entrepreneurship Education Seed Funding Services
  79. 79. 79 © innoVaventures All rights reserved ™ Phase 4 Angel Funding infrastructure Phase 3 1st real BizPlans Summer schools Bootcamps Seed Funding Phase 2 Coaching Consulting Mentoring Experimental labs Industry connections Phase 1 entrepreneurship education, Educational BizPlan Competitions Phase 5 VC / further scale Educational Process Real-life practice Real companie s helps you to bridge the GAP !!™ Entrepreneurship Education Seed Funding Services
  80. 80. 80 © innoVaventures All rights reserved ™ InnoVaventures Global Network of Experts
  81. 81. 81 © innoVaventures All rights reserved ™ InnoVaventures Network of -in negotiation (Phase I) -planned (Phase II) -planned (Phase III)
  82. 82. 82 © innoVaventures All rights reserved ™ Network of Global Clusters of Innovation

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