Chapter 13: Launching a High Tech Venture

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How would you assess the technology opportunities of a venture?

In most cases technology opportunities result from several sources, some from the need for change and others from defining new opportunities.
This involves investigating and detecting technology ideas in the marketplace that result from changing requirements on the part of the competition or the change in environment.
It is important for successful technology ventures to have a well developed mechanism for identifying, selecting and processing ideas into opportunities. Predicting which technology will next capture the market is difficult. Some companies select several technologies, entering into many new ventures simultaneously.

What are the disadvantages of forming alliances?

An Exclusive Agreement

While most businesses look at an exclusive agreement as a plus, it has its downsides. Before both parties agree to the agreement, it is important to understand the value and issues surrounding the exclusive terms.
While exclusivity protects the interests and provides some sense of security in the relationship, there is a cost associated with the arrangement. Usually an exclusive relationship is limited to where and how a company can operate in a market or industry

The Culture Alignment of both Companies

While culture and vision misalignment may seem like a weak area of a business alliance, it is a true test of whether the relationship will succeed. Early on it will become apparent if the cultures of the business are either in alignment, complementary, or are completely different.

What steps should be taken to protect a technical idea?

The technology venture should perform a preliminary analysis of the market and document a brief, descriptive record of the technology idea.
Define what is being protected and include product features or an entire line of products.
The venture hires an intellectual property law firm. To make the decision consider the success of the firm and its experience with technologies related to the patent

What are the key reasons to pursue a licensing agreement?

Through licensing, a relationship is created where the early stage venture provides intellectual property, and the business partner provides the financial resources, plus marketing and distribution channels to achieve optimum commercial success.
By entering into a relationship and leveraging the strengths of both parties can yield far greater success and profitability.