Innovate or Perish: Managing the Enduring Technology Company in the Global Market

Impediments and Missing Pieces

Money changes everything,^[7] but it isn’t enough. Venture capital–invested/inspired university science–based ventures or corporate spinouts require more than just money. They require new-venture infrastructure, meaning a critical mass of the following five key elements:

^[7] “Money Changes Everything” (song by Cyndi Lauper).

1. Management: Experienced management (fund management and emerging company management)

2. Money: Smart money (experienced investors at a variety of stages)

3. Providers: Experienced service providers (new-venture experienced lawyers, accountants, property managers)

4. Policies: Supportive state, institutional/university, and local policies, leverage and incentives

5. Science: Intellectual property based on science and technology (local or not)

This list does not address the issue of culture because, regardless of cultural vectors, these five elements are of paramount importance.

Management. Start-up chief executive officers (CEOs), directors (members of the board), scientific advisory board (SAB) members, product development managers, and the like who have relevant experience are key. In not-so-fertile areas we have to grow some of our own, and in doing so, we need to make sure we have at least a few key players with experience bringing the others along. For example, a first-time start-up CEO with relevant product development experience might work well with an experienced board and investors. The following are a couple of lessons learned:

1. Set up ...