Idea Makers and Idea Brokers:
Intellectual Venture Capitalists in High Technology Entrepreneurship

by:

Dr. Elias G Carayannis
and
Todd Juneau, Esq.

This web page has been prepared as an adjunct to the book, "Idea Makers and Idea Brokers: Intellectual Venture Capitalists in High Technology Entrepreneurship".  It contains information about the book as well as resource materials which support the concepts discussed in the text.


Abstract
Entrepreneurs often need the expert advice of professional service providers (consultants, attorneys, public relations, recruiters, etc.) to develop business strategies and develop their start-up firms.  These providers are in essence trading their intellect for monetary compensation.  For start-up firms there is a potential impediment in their current relationship with professional service providers in that these relationships are arms-length, contractual agreements, while the service required may actually be very strategic and organic to the success of the start-up.

Also, the entrepreneur often lacks the resources needed to pay these providers the market rate for that expertise.  The alternative is for the entrepreneur to depend on "middlemen" (such as incubators or venture capitalists) to arrange access to this expertise - for which the entrepreneur pays a heavy price for sacrificing substantial amounts of equity.

This book provides a potential solution to this dilemma: the use of equity based compensation for professional knowledge providers.  Instead of the fee-based approach, where the professional service provider bills the client based on time and effort, the equity-based approach pays the provider with a share of ownership in the client, which can then be converted to cash at a later date (e.g. through an initial public offering).  This model of compensation is already used by a small number of firms that specialize in serving high-technology startups. This equity based approach reengineers the relationship between professional services and entrepreneurs.


Table of Contents

Part I  The Intellectual Venture Capitalist as Concept and Practice
Chapter 1 - Introduction: Intellectual Venture Capital for Entrepreneurship
Chapter 2 - Challenges and Opportunities in Working with Start-ups
Chapter 3 - Developing Win-Win Relationships:  The Equity for Service Model
Chapter 4 - Insights From Practice:  Perspectives of Expert Service providers

Part II  Using the Equity Based Model:  Primer and Cases from Practice
Chapter 5 - IPR Primer:  A brief Overview of US and International IP Laws
Chapter 6 - Intangibles Valuation Primer:  A brief Overview
Chapter 7 - Financial Rules & Regulations Primer:  A Brief Overview
Chapter 8 - IPR From the Entrepreneurs Perspective

Part III  Insights from Practice and Lessons Learned in IVC
Chapter 9 - Insights from Practice:  Case Studies of Equity for Service Deals
Chapter 10 - Equity for Service Deals:  Conclusions, Insight, Recommendations


Resources

Patent Timeline - The step by step process of patenting from conception of the idea through the issuance of a patent by the United States Patent and Trademark Office.
Click Here for Download

Valuation Model - rNPV Biotechnology Valuation Model - This valuation methodology was developed by BioGenetic Ventures, a biotech investment banking firm, to accurately assess the value of potential technology acquisitions.  It uses the risk-added and risk adjusted methods of valuation
Click Here for Download of the rNPV Model

Putting a Price on Biotechnology - A reprint from Nature Biotechnology, (September 2001), discussing the rNPV valuation technique.
Click Here to Download "Putting a Price on Biotechnology"


E-mail the authors:

Dr. Elias G. Carayannis (Bio)
Associate Professor of Management Science
School of Business and Public Management
George Washington University
"Dr. Elias G. Carayannis" <caraye@attglobal.net>

Todd Juneau, Esq.
Partner
Nath & Associates, PLLC
Washington, DC
tlj@nathlaw.com