Less than 3% of startups receive funding from Angels, and less than 1% receive investment from VC's. We believe in a new source of funding—brands & corporations. While brands have long played the role of "last minute monetization savior," Spark Labs believes their most valuable role is upstream as a development partner, providing startups with a proof of concept, case studies and scale. As a partner to the tech companies, brands & corporations open themselves up to exponential value through first mover advantages, efficient pricing and customized opportunities.
We partnered with our friends @ Evol8tion to take the Open Innovation practice to the next level and by connecting our network of 1,500 Tech companies around the world to the 150+ brands & corporations that are working with Evolution in order to find the game-changing technologies in their respective markets.
WHY OPEN INNOVATION
Approximately 50% of Fortune 500 companies are dissatisfied with their internal innovation results in terms of “idea generation” or “turning a high potential idea into successful product/service” (source: Booz & Co.). U.S. corporations are generally dissatisfied with their R&D spend ROI. Open Innovation tackles this issue head on.
On the other hand, while the E.U. leads the world in key technologies (e.g., mobile, clean tech, analytic tools), the amount of funding available in the E.U. for early-stage investing is only 10% the amount of funding available in the U.S. Hence, European start-ups are eager to relocate to the U.S. not only to obtain the necessary funding but also to penetrate the large and lucrative U.S. market.
Spark Labs Open Innovation Program addresses both challenges above by matching the innovation needs of U.S. companies with European start-ups that provide the exact technology required.