Most organizations lack one or more of the critical components to turn unique IP into sustainable growth companies.
Many technical founders do not have the depth of business experience to take their IP to market. Many large enterprise organizations may not have a deep bench of seed stage hands-on expertise to incubate the transition from technology to product to launch and operating business. Additionally, to incubate new businesses requires a relaxation of the enterprise business structure in order to create sufficient flexibility needed at this stage, investment for continuous innovation, recruitment of specialized skills, and commitment to fund the incubated companies through their life cycles.
The Combine provides an outsourced innovations service to those companies to assist in monetizing IP assets without the extensive overhead of an in-house innovations group. The approach provides for a unique opportunity for both the enterprises organizations and technical founders in bringing their undeveloped technologies to market for a significant premium return at a lower risk. This model also provides investors with an opportunity to participate in non-traditional early-stage deal flow that is professionally managed while leveraging founder’s economics.
The Combine structure allows you to scale executive services across concepts to save initial investment capital, and aligns equity incentives toward exit valuation. The Combine’s process maintains strict focus on sustainable exit valuation and avoids typical startup error.
All operational expenses for the new company are covered from investment (no equity dilution from top-line management fees) and The Combine’s upside is carried interest paid only if company is successful in converting concept IP into exit-worthy companies that hit target multiples. The Combine’s discounted retained services model paid from company to be repaid from Series A investment and warrants paid to The Combine as compensation for discounted service fees.
- Business Evaluation: Conduct due diligence on selected IP for product & market viability, competitive landscape, business planning, initial valuation and investment decision support
- Product Commercialization: Commercialize initial product and provide interim executive management to build business infrastructure for initial go-to-market.
- Market Launch Commercialize initial product and provide interim executive management to build business infrastructure for initial go-to-market
- Customer Execution Execute pilot customer engagements and build repeatable scale of solution delivery beyond initial customer milestones
- Growth Transition: Transition to self-sufficient business growth with recruitment of permanent management team and growth funding.
- Selection Assignment Initial Meeting with core team & select Specialists to evaluate potential of the opportunity. Tell us what you got, why it will work, and why it is better. We will give you straight feedback.
- Diligence Our first step of each engagement is a portfolio scan to identify high-probability exit opportunities with a deep-dive on each opportunity establishes first market, exit options, projected multiples, and initial seed investment. The expectation is that additional investment only in opportunities with clear exit strategies. Typically three-month due-diligence with three formal monthly checkpoints. Our job is to make it better, make it work, and to make it fundable. As is often the case with early-phase companies experiencing the realities of the market for the first time, we expect the needs and priorities of the business concept to evolve over the course of the engagement and we will build flexibility into the working model to allow adjustments if/when the opportunity presents itself.
- Pre-Investment Opportunity Due Diligence & Market Validation - Stringent evaluation & due diligence process to determine the viability of the technology, the possible applications, the most viable markets, the product requirements for the first market.
- Business Execution Planning & Requirements - Prepare the preliminary execution plan and time-phased budget planning, budgeting, external SME resources, timelines, and funding requirements for go-to-market process, drive initial pilot customer sales, and to prepare for market launch.
- Investment Options & Funding Requirements - Preliminary value estimates, initial investment requirements, and exit scenarios report along with a proposal for the follow-on execution phase services.
- Portfolio Company Based upon the business execution plan, we build out the company to hit the defined business milestones – this typically can be 12-24 months based upon progess. Our executive and project teams takes the lead and actively manage each company to market along with our process that is designed with multiple gates to ‘fail faster’ and minimize investor risk.
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We partner globally with enterprise organizations and technical founders to convert their promising intellectual property and unique approach into viable, scalable businesses.Get In Touch