Somewhere deep in the closet of a multinational corporation (MNC) sits a new technology that could potentially change the world, but for one reason or another, it has not seen the light of day. If no one champions its potential, then it will remain there. An invention that could have brought more than a billion dollars of value to the market will go unused.
A groundbreaking company called Innventure works with MNCs to maximize these opportunity costs, building new companies around MNCs’ potentially shelved technologies. By pairing these assets with existing markets, Innventure’s new businesses can disrupt entire global industries and generate millions of dollars of new revenue for the original MNCs. For instance, Innventure commercialized a disruptive technology from Procter & Gamble to create PureCycle Technologies, a public company that turns plastic waste into virgin plastic for reuse.
“We’ve spent more than 25 years doing this work,” said Bill Haskell, CEO of Innventure. “In the beginning, we studied the process of launching, scaling, and selling startups. We’ve refined our procedures over the years, and today, our team of serial C-Suite executives relies on this proprietary systematic process in an effort to build high-value companies”.
In short, Innventure is working to master the science of building companies with disruptive technology at its core.
The ingredients of long-term success
Unlike venture capital firms that invest in startups, Innventure builds the new companies themselves. For Haskell, succeeding in the long run not only means identifying a disruptive technology, but also identifying a sufficient market for it.
“Inventors tend to invent things they find personally interesting, but that doesn’t mean the world needs those inventions,” Haskell explained. “In order to form a successful startup around a new technology, it’s important to analyze existing demand. Do people actually need this product? Who are they, and how many of them are there?”
According to Haskell, Innventure’s analysts also factor in the total costs involved in bringing the product to market. After considering the size of the possible audience and the cost of launching the product, the Innventure team calculates whether or not the effort will be worth the return.
“We’re only interested in working on projects that we believe will result in over $1 billion of total value,” Haskell said.
Scaling from small to top-tier
When asked how to scale startups up seamlessly, Haskell answered: “Some difficulties are inevitable. Knowing that and embracing it is part of what makes a smoother process. At Innventure, we believe in being prepared for everything.”
Instead of trying to avoid all obstacles, Haskell banks on his team’s deep wells of experience. “Our C-Suite executives have the kinds of backgrounds that enable them to problem-solve quickly and efficiently,” he explained. “Since they’ve started many other companies before, they can spot potential pitfalls early and take preventive action before they become full-blown.”
One common mistake new entrepreneurs make is taking an overly broad approach. According to Haskell, this can scare potential investors away.
“Even if there are a million possible applications for your invention, don’t rush it,” he counseled. “Pick a single vertical and spend time building it out. Trying to do everything at once is likely to lead to paralysis since there’s no clear path forward. By focusing your efforts, you will be able to prove your concept, which will open doors to further financing and enable you to continue expanding.”
Positioning companies for a smooth exit
Innventure develops companies until their products have been successfully commercialized. At this point, Haskell and his team initiate their exit strategy — either taking the company public or selling it to a private party.
While many new entrepreneurs may delay thinking about their exit strategy until they have gotten their business off the ground, Haskell suggests this is a mistake.
“We always decide on the exit strategy from the very beginning, even before agreeing to take on a given project,” Haskell said. “The exit strategy is basically the destination that you want to take the company, so it’s important to keep in mind throughout the inception and scaling-up phases.”
Haskell emphasizes the necessity of using empirical data to benchmark progress toward this goal. Without this quantitative approach, businesses can struggle to identify and remove roadblocks in a timely fashion, thereby thwarting their own growth and leading to costly delays.
“Making a smooth exit means having control over what’s going on,” Haskell explained. “That requires establishing robust databases as soon as possible to understand what’s happening in real-time on the ground.”
By bringing the right ingredients together under a team of wise leaders and planning for success from the beginning, Innventure demonstrates the science of building new businesses. In the process, they work to fulfill the promise of bringing underutilized technologies to market that can better the world.
