Innovation Acceleration Group Blog

Posts by

Andre Marquis

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Does Your Innovation Process Assume You (Or Your Bosses...) Can Pick Winners?


The Bad News

You can't pick winners. The data from investing is overwhelming:
  • 12% of venture capital funds outperformed the market.(1)
  • 7% of angel investments account for 75% of returns.(2)
  • 0.6% of 2,100 actively managed US equity funds tracked between 1975 and 2006 outperformed the market. (That is, none….)(3)
The data from product development is just as bad:
  • 87% of university patent licensing offices lose money.(4)
  • The probability in the US of a pharmaceutical progressing from the first Phase 1 clinical trial to FDA approval is <10%.(5)
  • Of the 1,900 new CPG brands that hit retail shelves across the U.S in 2011 almost 70% accrued less than $7.5 million in year-one sales (aka lost money).(6)
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