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How would you describe the unique venture capital model behind Topspin Labs?

1 Answer, 0 Replies
Mike Keymer
Mike Keymer  replied:

Topspin Labs is a spinoff incubator - we work with existing companies who have developed IP and used it in-house, but that also has tangential market opportunities that the parent company is not able to pursue.  That situation often arises because the parent company is resource constrained, or lacks expertise in the new market, or is not organized in a way that allows it to effectively pursue the opportunity.  A classic example of this situation might be a small government contractor performing R&D for Government customers - they may retain the rights to commercialize the IP they develop, but are organized to be a successful R&D services company, not a successful software products company.

Topspin Labs’ Turnkey Startup partnership approach helps companies innovate by incubating new ventures in a safe environment, protecting the parent company’s ongoing operations from the distractions inherent in new startups.  Our approach helps established companies pursue new venture opportunities without wavering from their focus on running and growing their core business.

In our Turnkey Startup program, Topspin Labs partners with companies to pursue new opportunities in a cooperative way.  Topspin Labs partners with innovative technology companies to co-launch stand alone business ventures dedicated to pursuing specific market opportunities.  We incubate these new startup companies, developing sustainable business models while removing venture risks.  We identify and execute long-term capital-raising strategies that are most advantageous to a new venture’s prosperity.  We place the best leaders at the helm to ensure a successful launch and future growth.

The general deal structure involves partnering to form a new company to pursue the tangential market opportunity.  The parent company provides technology and technology expertise.  Topspin Labs provides management expertise to staff and launch the company.  Both Topspin and the parent contribute seed capital and share equity in a way that aligns the incentives of both founding parties.  In addition to conventional incubator benefits like office space, infrastructure, and administrative support, Topspin Labs’ spinoff companies also benefit from a wide range of commercial services and business development support provided by our internal team of experienced professionals. These services help ensure that each incubated company starts off in the right direction beginning immediately upon its formation.

At Topspin Labs, we are committed to engaging in interest-aligned partnerships that share common risks and rewards.  Our partners’ trust in us is our greatest asset and our shared success is our highest objective.