Keiretsu Forum
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Suite C-205
Lafayette, CA 94549
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Leveraging Entrepreneurial Innovation
www.nokia.com/Innovent
Entrepreneurship and Corporate Renewal
Nokia has a rich history of innovation and renewal, transforming itself several times to become the world leader in mobile communications. Renewal remains a core part of the corporate culture, and innovation continues to flourish, inside and outside the company. Looking to the future, Nokia’s leadership role is dependent on its ability to leverage these external, as well as internal sources of innovation. In particular, when it comes to disruptive innovation -- the visionary ideas that have the potential to change the way we live work and learn -- entrepreneurs are leading the way.
History has demonstrated that innovations that alter existing social practices and business models are not typically introduced by large, successful companies. It is the entrepreneurs, commonly referred to as “working in the garages”, who have the flexibility, creativity and focus to leverage disruptive innovation and create new market opportunities. Once introduced, large, successful companies like Nokia are well positioned to rapidly commercialize and scale the market.
Innovent, an entrepreneurial innovation unit in Nokia, seeks out entrepreneurs working on innovations that have the potential to significantly shape the way that people connect with each other, their communities and the things that matter to them. Leveraging a unique model of seed stage investment and collaboration, Innovent partners with these entrepreneurs to explore emerging market opportunities and create innovation options for Nokia.
Not Your Traditional Corporate Investor
Innovent is not your traditional corporate investor. It is not a corporate venture fund, nor is it a corporate strategic investor. Operating like most seed stage investors, Innovent invests early on, with average investments in the range of $250-$300K. Innovent works closely with other investors, like those in the Keiretsu Forum, as well as with the venture capital community.
What really distinguishes Innovent from other models is the approach to the entrepreneur: collaboration not control. In addition to the early stage investment, Innovent negotiates a separate Collaboration Agreement with the entrepreneur. The Collaboration Agreement is unique to each investment, and clearly outlines the relationship and the expectations, including resource commitments, and milestones for both Innovent and the entrepreneur during the collaboration. Timing is critical to early stage entrepreneurs and this collaborative approach allows the entrepreneur the freedom to pursue his or her vision and bring innovative ideas into focus, while at the same time ensuring that key milestones are met.
A Trusted Partner
For the entrepreneur, creating a business that charts new territory can be a challenge. Creativity, flexibility and timing are critical when you are trying to balance the mix of technology, market dynamics and business models required to succeed in today’s emerging markets.
Innovent offers expertise and the capabilities to help the entrepreneur identify markets and determine key success factors to scale opportunities as these markets grow. The Innovent team provides strategic direction and guidance, both from a technical and a business perspective, and offers entrepreneurs a bridge to a vast network of resources outside, and inside Nokia accelerating commercialization of the entrepreneur’s vision.
As appropriate, Innovent will help navigate the Nokia organization, ensuring the best use of the entrepreneur’s time and resources. At any given time, 30-40% of the Innovent portfolio may be engaged in some type of activity with the Nokia organization a prototype, proof of concept or other arrangement. Innovent also acts as a buffer so that entrepreneurs feel the autonomy necessary to continue to develop their ideas based on their passion.
Further, as part of the commitment, Innovent supports the entrepreneur as they work through the financing process.
Portfolio Focus
Advances in communications and information technologies have resulted in an increasingly distributed and networked world. Boundaries, once fixed, are now dynamic, as people and devices connect across heterogeneous networks and trust domains to create and engage in diverse, contextually relevant experiences. The complexity associated with enabling these interactions is increasing, challenging the human ability to effectively manage it.
Investing in 8-10 companies each year, Innovent focuses on communication software that is shaping the next generation of communications by facilitating seamless, complex interactions in a distributed, decentralized world. Innovent’s portfolio companies are working on technologies that: personalize and enrich the mobile entertainment experience; manage and distribute content in occasionally connected environments; provide identity and security approaches to facilitate secure seamless mobile transactions; manage complex networks; and, effectively mobilize the enterprise.
The following key questions form the basis of criteria Innovent uses to evaluate an early stage investment/collaboration opportunity:
- What potential does this concept have to significantly shape the mobile communications industry?
- How well can the entrepreneur articulate the vision and hypothesis about the market opportunity?
- Is the technology viable?
Finally, Innovent looks for entrepreneurs who share similar values and approach to collaboration.
For more information on Innovent portfolio companies, please visit http://www.nokia.com/nokia/0,,54252,00.html
Shaping the Future of the Mobile Communications Industry
Through its collaboration with its portfolio companies, Innovent gains a front row seat to experience the unfolding of new technology and market opportunities, and creates innovation options for Nokia. Innovent recognizes the importance of quickly getting an innovation working in the market so that it can evolve along with the market. Working together, Innovent and its entrepreneurial partners help shape the future of mobile communications.
“I’ve never encountered an organization that is so in sync with what our needs are, that they’re able to be a step or two ahead of us in providing a pathway through very, very treacherous territory, decreasing the risk of failure and increasing the probability of success.”
Sam Leinhardt, Entrepreneur, President & CEO Eizel Technologies Inc. (acquired by Nokia)
“The fact that Innovent understands and is committed to early stage entrepreneurs has made a huge difference for us. We were pre-revenue, and the attitude was more like ‘let’s figure this out together’. Innovent adds a discipline to the commercialization process that is critical. Innovent understands what the necessary steps are to keep us moving forward.”
- Andre Durand, CEO Ping Identity Corp. (portfolio company)
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