Professor Wim Vanhaverbeke, University of Hasselt, Belgium, presented this InterTradeIreland Innovation master class entitled "Open Innovation in High-Tech and Low-Tech SMEs" at the Whitaker Institute on 8th May 2014
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Joint value creation between ACE & Sanus § Result: negotiate to get a maximal win-win situation
§ Both firms can offer each other a lot § The large firm: § business and market intelligence § application technology § marketing know-how § large scale manufacturing § credibility among large potential clients § patent writing skills § … § Start-up: § new technology, business model, etc.. § entrepreneurial risk taking and decision making § …
How to organize for OI? External Venturing at ACE Five reasons not to start a power play with
external ventures: 1. Bad reputation: when the large, investing firm is looking
for interesting start-ups as a recurrent practice 2. Pushing too hard for a particular application (based on
the business model and application markets of the large investing firm)
u Market potential of start-up technologies is still very uncertain because of the early stage technology. Keep options open for unintended but interesting applications. Every start-up struggles with focus vs keeping options open issue
u Could limit exit possibilities and exit value for other shareholders (by lock-in to/dependency on corporate). Limits business potential of start-up (and thereby shareholders value)
Some assumptions for the financial and strategic investments
ACE Venturing: Assumptions for the CV investment n Investment : 5-10 million euro n 10% participation of ACE n Multiple after 5 years = x 5
ACE FS: Assumptions for the strategic investment n Sales: 50 million / year 5 years after launch - lasting till 10th year n Sales : Linearly increasing in first 5 years after launch n Expected (average for new businesses) profitability : EBIT 20% n Launch expected after 2 years
Fabuless™ can be incorporated into many food categories: Yoghurt Milk drinks Soups Nutritional Beverages Meal replacement products Ready prepared meals
n Fabuless™ as dietary supplement The Fabuless™ Mini-shot concept offers Fabuless™ in single-dose containers (7.5 ml) for use as a dietary supplement.
n Fabuless™ has been launched in several markets including US, France,
Spain, Portugal, Italy, United Kingdom and Sweden.