Summary of Commercializing Technologies Put On The Back Burner By Multinationals

  • forbes.com
  • Article
  • Summarized Content

    Innventure: Bringing Sustainability Technologies to Market

    Innventure is a company that takes promising sustainability technologies developed by multinationals but not commercially viable for them and turns them into successful startups.

    • Innventure bridges the gap between R&D and commercialization by identifying and licensing technologies from multinationals.
    • They form startups with the potential to achieve $1 billion in market value.
    • Their focus is on technologies that address sustainability challenges.

    Leveraging Multinational Resources

    Innventure's model leverages the vast resources and market insights of multinationals, which often have a wealth of promising technologies that don't fit their core business.

    • Innventure partners with multinationals, tapping into their knowledge of market needs and sales networks.
    • They acquire or license technologies from these companies, reducing development time and risk.
    • Multinationals provide support for market adoption and can benefit from the commercialization of their technologies.

    Reducing Startup Risk

    Innventure's approach aims to minimize the risks associated with starting a technology-based company.

    • They focus on proven technologies developed by multinationals, reducing the need for extensive R&D.
    • Innventure funds and manages startups, bringing in experienced executives to lead the teams.
    • Their model leverages the market insights and resources of their multinational partners, mitigating market risks.

    Sustainability Focus

    Innventure's mission is to create sustainable and profitable businesses around impactful technologies.

    • They prioritize technologies that address pressing sustainability challenges like reducing carbon emissions and plastic waste.
    • Their first startup, PureCycle, focuses on recycling plastic waste into virgin-quality polypropylene.
    • Accelsius, another startup, tackles energy efficiency in data centers by providing cooling solutions without air conditioning.

    Successful Startups: PureCycle and Accelsius

    Innventure's model has proven successful with several notable startups, including PureCycle and Accelsius.

    • PureCycle, which licenses technology from Procter & Gamble, has achieved a valuation of around $1 billion.
    • Accelsius, acquired technology from Nokia Bell Labs and is already commercializing its energy-efficient data center cooling solution.

    Four-Phase Due Diligence Process

    Innventure has a rigorous due diligence process for evaluating technologies.

    • A dedicated team evaluates technologies across four phases, ensuring their viability and market potential.
    • Their selection process is stringent, with only one in 30 technologies being selected.
    • This thorough approach guarantees that only the most promising technologies are chosen for commercialization.

    Going Public

    Innventure plans to access further capital through a SPAC (Special Purpose Acquisition Company) listing.

    • They aim to leverage the raised funds to support the growth of their operating companies.
    • Their goal is to build long-term businesses that drive sustainable innovation and create value for investors.

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