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)
- 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)