Introduction to the Venture Development Framework
VentureWell has pioneered the Venture Development Framework (VDF) through practice-based evidence, aimed at delineating the progression of early-stage science- and technology-based ventures. This framework serves as a valuable tool for informing the design, implementation, and evaluation of programs supporting entrepreneurs. It assists practitioners in defining program scope, developing content, identifying gaps, and establishing partnerships. Additionally, for researchers and evaluators, it provides insights into program evaluation by delineating the milestones ventures can achieve post-program completion.
Overview of the Venture Development Framework
The VDF encapsulates the development trajectory of science- and technology-based ventures in their nascent commercialization stages. It primarily focuses on guiding for-profit ventures that are likely to pursue equity investments. The framework delineates venture development across six crucial dimensions:
- Team & Venture Structures: Focuses on the individuals involved in the venture and its organizational setup.
- Technology Innovation: Encompasses the product or service and its manufacturability.
- Intellectual Property (IP): Addresses the strategy and mechanisms for securing venture-owned IP and licensing university-owned IP where applicable.
- Market: Centers around the intended stakeholders/customers.
- Business Model: Explores how the venture plans to generate revenue, sustain itself, and disseminate its innovation.
- Resources: Covers the financial and institutional support required to propel the venture forward.
Venture Development Stages
Within each dimension, the VDF identifies stages representing observable changes as ventures progress. These stages focus on imparting concepts to foster advancement. The five venture development stages are:
- Market Discovery
- Market Validation
- Business Model Development
- Investment Readiness & Early Traction
- Early-Stage Growth & Market Penetration
Example Assessment of an E-Team at Different Time Points
The effectiveness of the VDF is exemplified through an assessment of an E-Team spanning 2015 to 2019, showcasing progress across each dimension:
- Team & Venture Structure: Clear leadership emerged as the team incorporated, negotiated equity splits, secured funding, and expanded their board.
- Technology Innovation: From idea conception to product manufacturing and shipping, the team progressed through prototyping, testing, and refinement.
- Intellectual Property: The team swiftly secured a provisional patent and continues to develop new IP with legal counsel.
- Market: Initially learning about value chains, the team progressed to conducting customer discovery and product pilot tests.
- Business Model: Developing a sales pipeline post-formation, the team adjusted pricing and now has a product in the market with a repeatable sales strategy.
- Resources: Initially supported by grants and competition prizes, the team garnered scientific and business expertise to navigate growth.
Frameworks for Different Commercialization Pathways
The VDF is designed as a dynamic tool, evolving through practical application. As observed in various scenarios, unique milestones emerge across dimensions, leading to the identification of three distinct pathways:
- Scaling through Partnership or Licensing: Involves supporting innovation scaling through partnerships or licensing agreements.
- Intrapreneurship: Focuses on innovation development within established organizations.
- Intellectual Property in the Global Context: Addresses scenarios where IP strategies are not US-centric or US-patent-specific.
