Innovation Divestment

The Challenge:

How to capture value from a fortuitous innovation that we are not in the position to explore? A client had discovered that one of their products had applications in unrelated industry sector. What to do now, this was the question a client had InnoCres Consultancy.

The Project:

The unexpected use of the client’s product was clearly defined, it targeted a two-digit USD billion industry. The first step was to determine the business model to capture the product’s value. We concentrated on three possibilities: do it all alone, partner or license the technology. Considering the client’s and industry structure, licensing was the most secure road to stable revenues.

With this decided, the next step was to prepare a Product & Market Dossier for the roadshow with industry leaders. We made sure that the IP had been properly secured and conducted the assessment of the market potential of the product. The later was essential for the best outcome of the negotiations with potential licensees. We established contact with three of the top four global leaders in the industry. Negotiations concluded with a license agreement with up-front, milestone and royalty payments in the mid, single-digit USD million range.

Value added by InnoCres Consultancy:

Technology and industry knowledge and network were paramount in this project. As part of our Technology Platform and Business Alliance work, we could effectively product the Product & Market Dossier and bring our client to the negotiation table with world industry leaders.