INTRASTART

Innovation Streamlined

With INTRASTART

Some of the biggest problems and markets are hidden in existing (midsize to large) businesses.


Explore an innovation process built to focus your company on the best opportunities.

"There is no long-term correlation between the amount of money a company spends...and its overall financial performance...what matters is how companies use that money...as well as the quality of their talent, processes, and decision making..." - PricewaterhouseCoopers 2018 Global Innovation 1000 Study

© INTRASTART. All rights reserved.

FIND IDEAS like
SILICON VALLEY

What if you could apply investor best practices to opportunities hidden in your business?
-Bring in more, better ideas
-Solve important problems in large markets
-Build something simple
-Launch fast
-Focus on user feedback/growth
-Leverage outside resources
-Incentives to promote success
-Inspire and retain top talent

Keep to yourself. Or call in the big guns.

Projects key to your competitive advantage advance with our internal innovation process.

Find external investment and entrepreneurial talent when growth potential and business priority disagree (with terms that won't stall innovation).

Contact Us

Send us a note.

Plans

  • Free - Try for 1 Month

  • Basic - $5/user/mo

  • Pro - $20/user/mo

Features

Idea Management

FeatureBasicPro
Idea FunnelXX
Quality AssuranceXX
Review and FeedbackXX
Growth Potential ReportXX
Prioritization & Spin-Out Report-X

Growth Tools

FeatureBasicPro
Rapid LaunchXX
User FeedbackXX
Market Estimator-X
Customer Contracts-X

Incubation

FeatureBasicPro
Pitch XX
Internal AcceleratorXX
Market Estimator-X
Standard Terms*-X
External Accelerator Support*-X

*Intrastart will take a 4% equity stake for projects that enter an accelerator or secure later-stage funding.

Plans

  • Free - Try for 1 Month

  • Basic - $5/user/mo

  • Pro - $20/user/mo

Features

Idea Management

FeatureBasicProDescription
Idea FunnelXXRecruit innovators, organize high quality submissions, access growth tools.
Quality AssuranceXXRemove low quality posts.
Review and FeedbackXXQ&A with the ideator. Rate, rank and prioritize. Keep the key metircs organized.
Growth Potential ReportXXUse your internal and external criteria to automatically generate a business case for investment.
Prioritization & Spin-Out Report-XCompare your business priorities to external opportunity and evaluate external spin-off.

Growth Tools

FeatureBasicProDescription
Rapid LaunchXXPush innovators to reach a minimum viable product.
User FeedbackXXManage feedback loops that will improve market fit.
Market Estimator-XCreate top-down and bottom-up evaluations. Make a stronger business case and investor pitch.
Customer Contracts-XDemonstrate traction and makert value by signing internal or external customers.

Incubation

FeatureBasicProDescription
Pitch XXSupport to design a pitch for internal or external fundraising.
Internal AcceleratorXXManage an internal organization to keep projects focused on growth.
Market Estimator-XCreate top-down and bottom-up evaluations. Make a stronger business case and investor pitch.
Standard Terms*-XPrevent stalled innovation by using standand criteria and terms when a new businessis spins-out.
External Accelerator Support*-XWrite the most competitive applications, minimize dilution, find great opportunities to further accelerate.

*Intrastart will take a 4% equity stake for projects that enter an accelerator or secure later-stage funding.

NOTE: 20 March 2020: New forms currently can not be submitted while upgrades are in progress.

A account is required to submit (an error will occur otherwise). Please register for an account at formstack.com.

Once this submission is complete, you will receive an email link to work on your idea through Formstack.

Intrastart Difference

Businesses innovators have been focused on whether or not an innovative idea should live or die within their company. At Intrastart we're focused on expanding the opportunity space to the high-potential ideas that are not internal priorities.

Learn why adding the option to launch innovative ideas into new companies can drive growth, talent and diversification while gaining support from strategic partners.

Basics: The Case to Externalize Good Ideas

Why do great ideas stay hidden in big businesses?

1) Priorities: Business vs. Growth
Businesses are focused on their core competencies and protecting their known markets. Available human and financial resources are limited. Ideas which do not fit business priorities, even if they are likely to generate higher returns, are lower priority.

2) Permission and Support for the right Talent
When an employee at a big business comes up with a disruptive idea, they are faced with the option of giving up their salary, career, benefits and stability to go into an unfamiliar market without any infrastructure. 

3) Business Case Momentum
Employees at big businesses have many talents, but often it's not the skill set of an entrepreneur which is rewarded. They may not have the skills to build momentum around a new idea or the expectation that the work it takes to do so will be rewarded.

4) Market Rejection is part of Establishing Traction and Proof
Often times, a big problem might only exist in a single part of a company. If one critical person says no internally, the whole internal market evaporates. Frustratingly, this decision could be more political than strategic. In contrast, entrepreneurs expect rejection and have an endless supply of new users on which to test their idea, collect feedback, iterate, gain traction, and demonstrate proof for their market hypothesis.

5) Financial and Social Reward
There is no expectation at a big company to be a dynamic, market busting iconoclast. It might be considered a fireable offense. And there is no equity given for the attempt.

6) Culture, Process, and Positive Feedback
The expectation to innovate, systems to do so successfully, and support for all types if ideas breeds more success. Success attracts talent and more innovative thinkers.

How should companies operate?

1) Evaluate ideas for themselves, but also for external opportunity
Innovation should not stop because the fit isn't right internally. Only the setting should change.

2) Bring in Partners
Partners can be entrepreneurs, investors, consultants, academic, or new employees. They have skills to deliver the idea, find potential, bring additional capital, or generate momentum that will lead to growth.

3) Trade Equity for Opportunities
You weren't going to pursue the idea anyway (ie, 100% of zero internal growth is $0 gained). Giving up a low priority, but high potential idea to a new entity gives the originator exposure to a new stream of revenue. The more equity surrendered, the lower the responsibility for providing the capital or human resources which drive growth. And equity assigned to others gives them incentive to make the value of your equity grow.

4) Standardize Decisions to Make them Fast and Reduce Risk
Terms built to protect your business without bogging it down allow the new opportunity to launch rather than wait. Quickly evaluate IP, support (funding and human resources), incubation, buyback right vs. the proposed equity stake. Guidelines based on the maturity of the idea.

5) Follow the Paths of Successful Startups 
Get into programs for non-dilutive funding, accelerators, and introductions to early-stage investors to increase the odds of success.

6) Partner with Your New Investments
Your new spin-off company came from the mothership. It probably solves a problem you have. Give it a better chance to grown by using their products and providing traction in their market. It's like paying yourself dividends! And as their first customer you'll also be their most important customer.

7) Become a Corporate 'VC' with better Diversification
Get exposure to the whole Intrastart ecosystem by investing in the fund after your first spin-off agreement is completed. Get connected to potential acquisitions which might support your core business.

What does Intrastart add?

Our tools make it easy to operate within the recommendations above.

Intrastart creates the process that generates results - whether for business priorities or high-growth external opportunities. Our technology facilitates innovation and identifies the best opportunities.

Intrastart's features standardize the best innovation practices and enable new externalization capabilities for your business. We leave internal projects to grow in your business, and launch ideas that belong in the external ecosystem into high-growth trajectory.

Externalization Terms

If you're here, the following conditions should be true:
1) A new promising innovation, business, market with high growth potential has been identified.
2) The parent company does not have the time, people, money, capabilities, interest, and/or ability to build the business themselves.
3) The idea is entering an incubation period supported by Intrastart and/or the parent company.

Therefore, the goal at this time should be to setup the new company to eventually give the parent as a big a return possible, if and when they become wildly successful. In talking to founders from spin-outs, one of the biggest issues at this stage is quickly severing ties from the parent. That's why we have standard terms and options to prevent losing good opportunities to bureaucratic death spirals.

These terms are designed to make fast, equitable exits from the parent company. They are focused on growth, room for equity, and protecting what's important to the parent without big/expensive/slow custom legal documents.

The standard externalization terms give space for options, but limit room to drag out a long process. The new company should have a clean break that lets them focus on their new mission, which may often start with building something for the parent company!

You have to spend money something to make money.

The terms set at this stage are functionally early-stage investments. The new startup company needs the following to grow (outside the parent's walls):
1) Funding ($50k or more)
2) Lots of unassigned equity to secure additional funding (~90% control by founders)
3) Founders/employees (probably 2-3)
4) Control of core technology
5) Promising growth potential, market, and business plan

The numbers above are typical guidelines. Since this is Intrastart, #5 should already be looking great once terms are being discussed. Also, remember, if you're here, the parent company has already decided they don't have the time, money, or interest in building this company themselves.







Therefore, the parent company has to decide what is important, and what they want to give up:
1) Capital
2) Equity
3) Human resources
4) IP
5) Options to buy additional equity (or the whole company)



To deliver incentive to both the parent and child, the following options are available:

CategoryClean Break with CashClean BreakCrossed InterestsHeavy Handed GoodbyePainful Separation
Equity8%7%6%5%4%
Cash Investment$200k$175k$150k$100k$75k
Option: IP-1% Equity-1% Equity-1% Equity-1% Equity-1% Equity
Option: Founder Support+1% Equity per person+1% Equity per person+1% Equity per person+1% Equity per person+1% Equity per person
Option: Incubation+1% Equity+1% Equity+1% Equity+1% Equity+1% Equity
Option: First Right of Refusal-1% Equity-1% Equity-1% Equity-1% Equity-1% Equity

Definitions:
Option: IP - the parent company wishes to retain limited IP rights for the core technology
Option: Founder Support - the parent company continues to employ and provide option to return to the parent company for 1 year
Option: Incubation - the parent company will provide work-space, internet, and other basic support
Option: First right of refusal - secure the right to buy the new company back later at an accepted sale price prior to competitors

These terms are combined in a standard SAFE, which converts to equity upon additional investment.

What does Intrastart add?

Intrastart takes 4% equity in exchange for acceleration, genernal guidance, facilitating terms, supporting strategic decisions. We may also provide financial support at a later date. Our goal is to get the new company to a later stage investment round (angel, pre-seed, seed, or series A).